Turnover comes in all shapes and sizes, so finding a universal fix is tricky. But guess what? Other companies with high turnover rates have faced this problem and found some pretty clever ways to handle it.
Let’s learn from their experiences and see how we can apply their insights to your unique situation. We’ll also share some key strategies to help you mitigate employee turnover.
What Is a Good Turnover Rate for a Company?
The right turnover rate to aim for really depends on the industry you’re in.
For example, in 2023, the average turnover rate across industries was 41%. But here’s how that manifested in specific fields:
- Government: 18%
- Financial Activities: 29%
- Information: 32%
- Manufacturing: 37%
- Education & Health Services: 39%
- Trade, Transportation, and Utilities: 49%
- Construction: 54%
- Professional & Business Services: 57%
- Leisure & Hospitality: 79%
To some extent, turnover is just a part of business growth and change—but negative workplace experiences can exacerbate it, creating instability for workers and racking up serious costs for businesses. Taking measures to lower your turnover rate can also improve your company culture and bottom line.
A 10% turnover rate is often considered ideal, but most companies fall closer to 15%, according to SHRM. Your sweet spot will depend on your industry and how often you promote people from within.
3 Companies That Turned the Tide
If your company’s turnover rate is throwing you for a loop, no worries—we’ve got you covered with real-life examples of companies that improved their turnover rates.
The common thread?
Leveraging an intuitive reward and recognition platform to improve culture and, in turn, improve employee engagement and commitment. Saying thanks in meaningful ways goes a long way.
The Nest Schools
Background & Challenge
The Nest Schools offer childcare and early education programs. Their mission is to set up children for a lifetime of success.
The organization faced three pain points: slow customer service, time-consuming manual reward processes, and restricted recognition reporting. The Nest Schools needed a better recognition program with higher quality and intuitive capabilities.
Strategies Implemented
The Nest Schools team implemented a comprehensive employee recognition software. This unlocked better support, customization, and reach regardless of where staff worked.
Results
Recognition no longer felt like a full-time job. With access to a smart, simple, and streamlined platform, The Nest Schools saved 6-8 hours a week and has been able to decrease turnover.
WOW! mobile boutique™
Background & Challenge
WOW! mobile boutique™ is your one-stop shop for personalized cell phone and wireless plan solutions. With over 80 locations nationwide, the business offers a pressure-free environment where you can get expert advice without the jargon.
The business wanted to provide more personable recognition and offer better compensation to its employees.
Strategies Implemented
WOW! partnered with Awardco to create a more personalized rewards and recognition program, in addition to revamping their compensation plan. These efforts have led to employees feeling more appreciated and cared for—not to mention they can now choose from a wider variety of recognition rewards, including gift cards, experiences, and merchandise.
Results
Better earning opportunities and near-unlimited reward options have made a huge difference in employee performance:
- Attrition has decreased by 30% to an all-time low
- Productivity improved more than 50% year-over-year
Quick Quack Car Wash
Background & Challenge
Quick Quack Car Wash offers exceptional car washes. Starting with one location, the company quickly expanded through organic growth and acquisitions. Today, Quick Quack operates over 180 car washes across states.
While the growth has been exciting, Quick Quack wanted to scale in ways that also included happy employees. Working in the service industry is challenging. Thus, the business sought creative ways to elevate its company culture.
Strategies Implemented
With the help of employee recognition software, Quick Quack built a recognition program centered on retention. This included a six-month retention reward, service anniversaries, and MemoryBooks.
Results
Thanks to thoughtful employee recognition powered by technology, Quick Quack was able to decrease employee turnover by 20%.
Key Strategies for Reducing Turnover Rates
Let's review other key strategies for reducing turnover to give your retention strategy the holistic approach it deserves. These actionable insights can serve as the stepping stones to positive change.
1. Enhance Employee Engagement
Employee engagement is one key ingredient in retention. Investing in employee development and providing recognition and rewards are two effective ways to increase engagement.
Career Development
A staggering 94% of professionals would stay with their employer longer if provided opportunities to learn and grow.
It’s safe to say growth and advancement opportunities are key factors in turnover. Here are a couple of places to start:
- Invest in skills-based training. This may include job shadowing, cross-functional training, certification programs, and mentoring. More than three in five employers pursue skill-based training because of the ROI it produces.
- Invest in managers. In many cases, people leave bad managers, not jobs. A whopping 66% of managers haven’t had any formal training. That’s a lot of folks leading teams without a playbook. Areas worth focusing on in your leadership training include conflict resolution, effective communication, and performance management.
Recognition and Rewards
Imagine doing a killer job on a project only for your work to be ignored or overlooked. Pretty sad, right? This can also put a serious damper on engagement and brew resentment.
Regularly recognizing and rewarding employees can turn this around. When team members feel like they’re recognized enough, they are 4X more likely to be engaged.
Examples of employee recognition programs to consider include:
- Peer recognition
- Spot recognition
- Milestone recognition
- Personal accomplishment recognition
- Incentive programs
2. Prioritize Flexibility
Being fully present in both your work and personal life is essential, which is why employees increasingly prioritize work-life balance and flexibility.
Work-life balance can mean different things to different people, so it’s important to initiate conversations with your workforce to define it properly.
Examples of measures that can enhance work-life balance include:
- Flexible work locations. Everyone thrives in different work environments—so let employees choose how and where they work. Offer remote, hybrid, or in-office flexibility.
- Flex time. Give employees flexibility around when they start or end their day to better fit their schedule. This can help them more easily manage appointments, car repairs, after-school carpooling, and other needs outside of work.
- Compressed workweek. This allows employees to fit their 40 hours into a compressed period—for example, working four 10-hour shifts in a week.
3. Offer Competitive Compensation and Benefits
Good pay and benefits are high on most employees’ priority lists, and there’s not much reason to stay with a company if you can make significantly more for the same work elsewhere. Finding opportunities to improve compensation and benefits packages can strengthen your retention strategy.
Market Research & Transparency
Staying competitive on pay is key! That means regularly checking the pulse of your industry and local market to make sure your salaries are in the right ballpark for each position.
Show clear salary ranges for different roles—this creates a sense of fairness and predictability for everyone. Ultimately, transparency builds trust. When employees understand the path to earning more, they’re more likely to stick around and become rockstar team members.
Benefits Packages
Think about offering benefits that meet the needs of your workforce. For example, affordable daycare might be a game-changer for some. For others, a student loan repayment program might be a sweet perk.
By tailoring your benefits package, you show your employees you understand their needs and are serious about keeping them happy.
Drive a Culture of Appreciation
When the average cost of turnover for one employee is anywhere from one-half to two times their salary, retaining your people should be a priority. One good place to start is appreciation.
Drive a culture of appreciation with Awardco. Read our customer stories to learn about other ways companies with high turnover rates have improved retention using Awardco.
