by Leigh Goessl

Created on: August 27, 2011

Employee turnover can be a costly occurrence if the rate of incoming and outgoing staff members is excessively high. An increased level of staff turnover is one of those problems a manager wants to solve before the situation spirals out of control.

If you are experiencing difficulty with staff retention it is a wise idea to look for ways to turn the situation around, as there are many benefits to retaining a good group of employees. Organizations that can effectively hire strong candidates and keep them on staff for the long-term add value to their business. Staff retention is a part of maintaining a successful business.

By reducing employee turnover, it is not only cost-effective, it can improve in other business areas as well.  Stronger staff retention can result in better productivity, higher levels of efficiency and increased morale, in addition, a natural side effect can be a stronger competitive advantage.  

Looking at the situation from that vein, you'll want to proactively look for ways to reduce employee turnover. Perhaps the best way to reduce employee turnover is to start at the foundation of the organization. Create an environment where employees are attracted to the organization, and once in, they can see reasons why they want to stay.

• Offer competitive employment packages

Companies that offer competitive salaries and comprehensive benefits packages may find this attracts good talent, but is also a good way to keep staff members happy and less apt to seek alternative employment. While it is true that benefits and good salaries are costly, in the long-run this may be more cost effective.

Consider the expenses associated with advertising positions, hiring, interviewing and training. If staff turnover is too high, this gets costly. However by putting an initial investment into staff through salary and benefits, this can prove to be a good investment over the long-term. Additionally, hiring agencies that set competitive (or better) salaries with a solid benefits package are likely to attract talented employees, which also adds value to the organization.

• Cultivate good leadership

Employers who want to maintain a good staff needs to start by employing good leadership. Organizations that employ managers lacking vision and/or people skills are going to find it to be a challenge to maintain a good staff.

Good employees are an asset to any business, and by appointing managers that possess a keen talent to develop a strong and positive

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