Tips for Reducing Turnover

by Mark W. Heisler, Partner, Competitive Business Strategy Group
As Seen In Small Business News, May 1998.

Turnover is a problem everywhere. The key to retention is focusing on issues you can control.

1. Ensure key people are growing and developing. Consider:

• Do they perceive the company is moving in the right direction?
• Are they being challenged?
• Do they know from you that their job is critical to the company? • Do they believe you value their opinions?
• Do they have appropriate control and decision-making over their work?
• Is their role preparing them for better things?

Do you really know the answers to these questions? Most key employees leave because either you don’t know the answers; or you do, and you have chosen not to act on that knowledge.

2. Although many think increasing salaries is the answer, it’s not.

• Employees seldom leave solely because of salary. There is usually an underlying reason.
• Keep salaries competitive. It’s not good business to overpay people and it probably won’t keep them.

By focusing on issues within your control, you can help keep key employees where they belong — with your company.

Return to Newsletter Menu