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Causes of Excessive Employee Turnover and Strategies for Reducing It

Employee retention and employee turnover are two buzzwords circulating in corporate culture recently. It has become a global phenomenon, which is upsetting for all employees and employers worldwide. All employers want to keep their top performers to maintain their high standards. At the same time, all employees who are dissatisfied with their jobs leave in search of better opportunities elsewhere.

A high rate of employee turnover can be a nightmare for employers. The organization must develop plans and strategies to reduce employee turnover while increasing employee engagement.

Human capital is an undeniably valuable asset for any organization at all times. There has been a labor shortage, and employers are scrambling to combat employee turnover. Employee turnover can be a costly affair for a business. According to research, it costs the company approximately 33% of an annual employee salary to hire and train a replacement.

Employee retention strategies that are successfully implemented can give recruiters a break. Because retention rates differ from one company to the next, effective retention planning can assist employees in remaining loyal to the organization and not seeking other opportunities. Companies should establish an open communication channel between employees and management to address all concerns.

Top 3 causes of high employee turnover

Low salary compared to the industry standards:

Because of the low pay, most organizations have a high percentage of employee turnovers. Because of the low pay scale, 70% of employees leave their jobs. Research states that while employees expect a 3-5 percent annual raise while staying with the same company, they switch to other companies expecting a 15-20 percent increase.

Better job opportunities elsewhere:

In today's highly competitive world, most workers are eager to improve their skills and capabilities to advance in their careers. Calling a career a dead-end job is a professional insult. As a result, when employees find better opportunities for growth and development outside of their organization, they tend to switch, resulting in employee turnover.

Lack of appreciation at work:

Appreciation and rewards are essential for all employees who work tirelessly to help the company achieve its objectives. Most employees are motivated when they are given a pat on the back for their efforts. However, when employees' efforts are not recognized and appreciated, they begin to disengage.

Top 3 strategies to reduce employee turnover

Recruit the right employees:

Recruiting the right employees is the most effective strategy for reducing employee turnover. Hiring an incompatible match for a vacant position may be the most significant impediment to employee engagement. As a result, recruiters must exert maximum effort when hiring employees for their organizations. You must ensure that the candidate fits the company culture and meets all requirements.

Provide development opportunities to your employees:

Employee turnover would be low if the organization provided development opportunities and continuous growth to its employees. Employees are more likely to participate actively if they see opportunities for advancement in their career goals. Employees enjoy working in an environment where they are exposed to clients and other important aspects. As a result, make sure to provide your employees with the necessary development opportunities.

Improve work balance for your employees:

All employees must maintain a healthy work-life balance. A company should make certain that their employees are not overburdened with work, which can lead to excessive burnout at the workplace. The workload should be manageable, and employees should not be forced to work late or start early in the morning.


These are just a few examples, but numerous other factors contribute to employee turnover. As a result, in today's world, it is prudent to implement effective employee retention strategies to increase employee retention. This could make it easier for recruiters to deal with the fierce competition and allow employers to get what they truly deserve. And for your recruitment needs, trust us.

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