The key way to reduce employee turnover is to make each employee feel valued and appreciated, and to ensure that no staff member is favored over the other. I have two examples from actual work experience. Which company would you rather work for?

A CEO walked into an office suite and went directly to the desk of a staff member. The CEO was bearing a t-shirt and presented it to the worker with great flourish. "I knew it was too big, but I thought of you when I saw it and I couldn't pass it up! You can always wear it as pajamas," she exclaimed. She started to laugh out loud.

Her voice was booming and the staff members who sat nearby couldn't help but overhear the conversation. The rest of the discussion revealed that the CEO had invited this staff person on a vacation trip and they were planning it right in front of other staff. They talked about what clothes to bring, what restaurants they were going to visit, what activities they were going to engage in, and so on.

Are you surprised by this true account? Has this or something like it ever happened to you? This woman "leader" is obviously not aware that her actions have impact - very negative impact - and that folks were starting to dust off their resumes.

Here's another true scenario. Every year on the anniversary of their day of hire, staff members would find a fresh flower on their desk with a handwritten note from the CEO that said, "I am so glad you are a part of our family." The morale in that company was the polar opposite from the first example. Everyone felt happy and honored to be remembered. Each person felt like a valued member of that organization. There not only was low employee turnover, but a waiting list of people who wanted to be hired.

Which company would you feel loyal to? The answer seems clear.

Why should companies care about curbing employee turnover? Any turnover - high or low - can be detrimental to your company's bottom line. It is expensive and time-consuming to replace employees.

Studies show that it costs companies almost 200% of a new hires salary the first year they are hired. It also takes much effort. Consider the time and cost to hire someone like: advertising, reviewing resumes, bonus signing, relocation pay, time for interviewing, travel expenses, pre-employee assessments. It also takes time to train them once they are hired including: new hire orientation of the company and training for the specific job.

There are ways to retain valued employees.

Treat them well. Studies show that how people are treated is more important to most employees than salary or benefits. Make sure your leaders have a clear directive to treat everyone fairly and equitably. Demonstrate respect for employees at all times. Offer performance feedback and recognize and praise good efforts and results. Reward excellent performance. Celebrate success. Give them new challenges in their job and make work fun.

Second, hire the right people in the first place. There are sophisticated behavior-based testing and competency screenings available to H.R. departments. There is nothing more frustrating to you or your new employee than having the wrong skills or being in a unit where your personality and values may conflict with those of others.

Lastly, pay them competitively. It costs less to pay them well than to lose them and have to replace them.

Learn more about this author, Em Dickinson.
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