Hiring and replacing employees is a time-consuming activity which most businesses deal with on a daily basis - though not many will realise how much it’s costing their bottom line. One analysis from Oxford Economics suggests that it can cost up to £30,000 to replace an employee, including advertising and recruiter fees but predominantly made up from the cost of lost productivity and the time it takes to get the new recruit up to full working capacity. 

And in what’s widely considered a job seekers market right now, and some industries such as healthcare seeing record levels of vacancies, what can organisations do to ensure they’re limiting voluntary turnover wherever they can? 

Sure, whilst a certain level of churn is healthy, having a steady stream of top talent leaving a company is harder to shine a positive light on. 

Here are six areas of focus which can help to tackle the problem head-on. 

Offer flexible working 

The tried and tested nine to five just doesn’t cut it for much of the modern workforce anymore. One study by Powwownow found that three-quarters of UK workers favour a job that gives them the option of flexible work schedules, with millennials, in particular, saying it’s a key driver when going for a job. 

Complete flexibility and benefits such as remote working aren’t always possible for companies to implement, especially those outside the tech or service sectors, but top performers who have a pick of options when it comes to job offers will look more favourably on companies that can offer more flexibility in the way (and when) they deliver their work.

Hire for culture fit

Many of the issues that cause high turnover can actually be addressed at the hiring stage. Whilst it’s tempting to hire the best CV available, some of the most successful companies when it comes to high loyalty and also better engagement levels understand that hiring for a culture fit is just as, if not more, important than bringing in the right immediate skill set. 

Development and progression

Career development and learning new skills are key motivators for younger employees, yet many businesses struggle to offer opportunities and training options to satisfy this workplace desire. One study from Penna found that two-thirds of employees would start looking for a new job if their current employer didn’t offer sufficient career development opportunities. 

Show recognition

One of the top reasons why employees quit is because they don't feel appreciated and that their contributions are seen. 
That's why, accordingly to Josh Berson's research, recognition-rich cultures see 31% lower voluntary turnover rates. 
Modern approaches to employee recognition - namely social or a peer-to-peer approach that encourages gratitude to be given by anyone within the organisations - have been found to be the most effective and preferred model by employees, particularly millennials.  

Improve your company culture

Organisations with poor company culture are almost 50% more likely to experience high turnover. That shouldn't be a surprising fact. No employee wants to arrive at work every day to sit in a toxic environment, one that's non-supportive, over-competitive or lacks a shared common goal. 

Creating real culture change takes time and it's important to understand the direction of desired travel from the outset. Can you build competitiveness but with strong values around supporting fellow colleagues? Can you create an environment where employees feel confident to voice their own ideas, in their own voice, without fear? Or speak up if they see a potential hazard or roadblock? 

Provide a 'why'

As Dan Pink shared in one of the most-watched TEDtalk videos of all time, providing a why behind what a company does is critical to success. And the same thinking transcends through to the workforce. Employees want to not only understand how their efforts are contributing to the overall success of the business but also the driving force behind the business being in existence. 

What is its' why - its’ purpose?

This purpose is a key element of creating long-term individual engagement and collective drive to perform and deliver every day. Without it, it's easy for staff to lose focus, become disillusioned with the day-to-day working practices and processes and fail to see the bigger picture.