Tips to Help Prevent Employee Turnover 

Employee turnover is defined as the loss of workers in an organization over time. Turnover is expected and natural for any organization, and it isn’t necessarily a bad thing.

For example, turnover from poor performers leaving the company is often expected. Conversely, it can damage a company if top performers frequently leave.

Employees leave their jobs for many reasons, including insufficient compensation and benefits, excessive workloads and lack of professional development.

It’s essential to understand how to calculate employee turnover and how to prevent top performers from leaving your organization.

How to Calculate Employee Retention Rates

Before concentrating on reducing the turnover rate, it’s essential to determine the number of people leaving your organization. Employee retention calculations provide a baseline and point of reference when determining how a company’s retention rate compares to others.

To calculate the employee retention rate, divide the number of employees who were terminated or left the company voluntarily during one month by the number of employees who were working at your organization at the beginning of that month. Multiply that number by 100, and you have the employee retention percentage.

Keep in mind that retention rates vary by industry. For example, in some cases, an annual employee retention rate of 80%, 90% or higher is considered well above average. Industries with the highest retention rates often include government, finance, insurance and education. Lower retention rates are more common in the manufacturing, hotel, retail and food industries.

Tips for Retaining Employees

Use the following tips to retain employees:

• Tell your valued employees how important they are to your organization, and do it often.
• Create and maintain a strong company culture, which is the personality and environment of an organization. A good company culture should promote collaboration, inclusivity, innovation and respect.
• Offer health screenings, gym memberships and other employer-sponsored perks to promote physical, emotional and mental well-being.
• Provide a well-rounded employee benefits package. When employers can offer a competitive benefits package that meets the needs of their workforce, employees are more likely to stay with that organization. Benefits packages can include the following:

• Health insurance
• Vision insurance
• Dental insurance
• Paid sick leave
• Flexibility work arrangements
• Mental health care coverage
• Paid gym memberships
• Family leave
• Retirement benefits

• Life insurance

We’re Here to Help

At Lyceum Insurance Services, our dedicated team fully understands the importance of employee retention. We will draw on our over 40 years of experience serving employers to help your organization prevent employee turnover. We can help you find a benefits package that suits your workforce.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.