4 Powerful Ways to Reduce Employee Turnover

The average company has a staggering 13% employee turnover rate. That translates into thousands of dollars lost, paid in recruiting, training new employees to fill the gap, and productivity loss. Learning how to reduce employee turnover is essential for long-term growth and stability.

The problem of high turnover starts right at the beginning of the hiring process.

Frequently, small companies or those looking to fill highly specialized roles struggle to get “enough” applicants and, therefore, understandably focus on recruiting people who have the skills and expertise to do the job. However, focusing on finding people who can do the job is not enough for long-term fit. Recruitment often overlooks—or worse, relies heavily on instinct during the interview process to assess—other important success criteria for long-term engagement: personality and culture fit.

Here are four ways you can reduce employee turnover and hiring costs at different stages, from the hiring process to retention plans:

Vet Employees Properly to Reduce Employee Turnover

Of course, no one hires solely based on a resume – that’s why companies take time to interview candidates, usually over several rounds and with meetings with various people in the organization. So, we all agree that while some individuals may have all the key skills and competencies required for a role, if they don’t fit with the company culture or clash with their managers, they will not last.

But how well are interviewers able to assess and predict which candidate will work best with a particular manager (since dissatisfaction with a manager is the #1 reason people leave their jobs), versus who they like during the interview? And how can they differentiate between someone with great interview skills and someone who will deliver and stay?

OpenElevator provides a simple and intuitive platform that allows hiring managers and recruitment teams to compare applications not just on skills, but also on compatibility with the manager and values alignment with the organization. This enables confident decisions about whether to reject, shortlist, or interview a candidate.

Using tools like OpenElevator helps companies reduce employee turnover by hiring candidates who are a better fit from day one.

Implement a Strong Onboarding Process to Reduce Employee Turnover

Once a candidate has been hired, onboarding is crucial for engagement and long-term retention. Large companies often have elaborate onboarding experiences—but even small organizations can be successful here.

For example, pairing new hires with experienced team members fosters connection. Employees who feel included and supported are more likely to stay, helping to reduce employee turnover and increase team cohesion.

Offer Training and Growth Opportunities to Reduce Employee Turnover

While early-career professionals actively seek on-the-job training, even seasoned professionals value continuous learning and career development.

Offering upskilling in relevant technologies, presentation skills, or mentoring programs demonstrates that the company cares about growth. This not only boosts morale but also helps reduce employee turnover by creating an environment where individuals see a future.

After recruitment and onboarding, companies must focus on retention through recognition.

Great managers know that regular and authentic recognition boosts.

Recognize and Reward Performance to Reduce Employee Turnover

Sts morale and loyalty. Simple gestures—like an appreciative email or celebrating team achievements—can go a long way in helping employees feel valued, which directly helps reduce employee turnover.

Final Thoughts: A Strategic Approach to Reduce Employee Turnover

To attract and retain top talent for the long term, your recruitment process must focus not only on skills but also on manager and culture compatibility. From hiring tools like OpenElevator to a thoughtful onboarding program, training opportunities, and recognition strategies, every step you take can help reduce employee turnover and boost your company’s performance.

By implementing these strategies, your organization can save time and money, build stronger teams, and stay focused on achieving business goals.

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