6 Ways To Reduce Labour Turnover

We all know it, hiring is expensive. Once you have onboarded a new recruit, you need to take steps to ensure they stay and grow with your business.

6 Ways To Reduce Labour Turnover

Labour turnover, also referred to as employee churn, is the bane of pretty much every hiring manager’s existence. First of all, it’s expensive. According to SHRM, every employee departure costs the company about one-third of that worker's annual earnings. That's just the tip of the iceberg, of course. There are many other hidden costs associated with low initial productivity, impacted team morale, etc.

Furthermore, high levels of turnover reflect poorly on the employer brand. Modern-day job seekers can access sites like Glassdoor to read up on prospective employers, and high levels of turnover typically point to workplaces with problematic cultures. In short, if you want to attract and retain top talent, your churn rates have to reflect well on your company as a whole.

Here are six practical ways in which businesses can curb labour turnover in 2021 and beyond.

Six Practical Tips to Curb Labour Turnover in 2021 and Beyond

1. Make The Right Hiring Choices

One of the primary reasons for employees leaving their workplace in search of greener pastures is unmet expectations. As such, it only makes sense to hire for cultural fit straight off the bat.

Leveraging AI and ML in recruitment can go a long way to ensuring that the correct type of candidate makes it onto your shortlist, paving the way for long-term employee satisfaction and retention.

2. Compensate Your People Well

No surprises here - if you pay your people well, they are far more likely to stay put.  Market-related salaries, along with benefits like medical aid and retirement annuity contributions, will always be high on the list of any candidate. After all, as much as people want their jobs to be fulfilling and rewarding, they also need it to put food on the table, keep a roof over their heads, cover utilities, etc.

3. Provide Employee Recognition and Rewards

Employee Recognition and Rewards

Giving credit when it is due is a surefire way of boosting employee retention at your place of work. People respond positively to recognition; it makes us feel safe and valued as a member of a group. As such, companies that make employee recognition and reward a priority have a much higher rate of retention and eNPS than those that don’t.

Employee rewards don’t have to be costly to be effective either. As long as the recognition is timeous and specific, and ideally public, it will have a positive effect on reducing labour turnover.

4. Offer Opportunities For Growth

Another reason why employees may voluntarily keep an eye out for better opportunities is the belief that they don't have any room for growth in their current position. As such, it pays to check in with your team members regularly to see what their ideal career trajectory looks like in their mind’s eye and how you can work together to make it a reality within your organisation.

Additionally, providing ongoing learning and upskilling opportunities show your workers that you are willing to invest in them as people. It also has the added benefit that they become better and more efficient at their jobs - talk about a win-win!

5. Align Employees With Your Vision and Mission

Have a clear company vision and mission, and ensure that your employees know how their contribution factors into your overarching business goals. Remind a person regularly how their day-to-day tasks enable your company to grow and prosper, and they are much more likely to be fulfilled and happy in their job.

6. Allow For Work-Life Balance

Work Life Balance

Burnout is a genuine threat in most industries these days, particularly in the wake of the COVID-19 pandemic. Widespread job losses and economic uncertainty have placed breadwinners under enormous strain as they work as hard as possible to make themselves indispensable to their organisations. At a time when entire business models are being overhauled, see how you can be there to better support your A-Team.

If it suits your operational model, offer employees the option of flexi-time as a means to pave the path for a healthy work-life balance. This way, team members can arrange their day to accommodate family responsibilities, exercise, and life admin in general - leaving them free to focus on bringing their A-game when it is time to work.


Labour turnover is costly, disruptive, and doesn’t bode well for your brand. Keep employee churn to a minimum by making the right hiring choices, compensating your people well, and providing employee recognition and rewards. Offer opportunities for growth, align employees with your vision and mission, and allow for a work-life balance. These strategies will make your company a great place to work where your team can flourish and excel.