Ending Soon! Save 33% on All Access

If Your Team Has a High Turnover Rate, It's Time to Re-Evaluate No one wins when there's constant employee turnover. Luckily, there are a few things you can do to mitigate this pervasive problem.

By Lesley Pyle Edited by Kara McIntyre

Opinions expressed by Entrepreneur contributors are their own.

When you're in the early stages of business, it can be tempting to try to save money by hiring as few employees as possible and paying them less than they deserve in order to keep your overheads low. However, there are several reasons why taking this approach isn't ideal, and one of the biggest factors is the employee turnover rate.

Perhaps you're an experienced business owner and you've been running your company for quite a few years, but you still find employees leaving constantly. Either way, if your team has a high turnover rate, it's time to re-evaluate the way you manage employees and pay them accordingly.

Related: Staff Turnover Is Draining Your Company

Causes of high employee turnover

There are many reasons why employees may choose to leave their current position. Maybe they feel like they're not being paid enough, or they don't have enough opportunities for growth. Maybe the company culture is toxic, or they're just not happy with their current situation.

I recently spoke with someone who found themselves working at a company that was constantly losing people — and bringing in new people. They told me that they noticed the CEO tended to give people more projects than they could manage. Eager to please during their first few days at a new job, people would say yes to anything the CEO asked, and the CEO would often ask for projects to be completed that were not included in people's job descriptions. These new employees would do their best, hoping to impress their new boss, but what they did not realize is that they were setting a precedent where the CEO constantly asked for projects they were not paid for on top of their normal day-to-day duties.

The owner of this company would often express confusion at the high turnover rate. From the outside looking in, it is very easy to see the issue and diagnose it. The owner of this business is passionate and always excited for the future. It's easy for them to get caught up in the potential of what could be and not what is happening currently around them — specifically with employees. That being said, if your company has a high turnover rate and you can't figure out why, it's time to ask for help. Ask your employees for honest feedback as to why they are leaving. Hire a business consultant. Get some help to take a step back and see the whole picture.

Related: 12 Pro Tips That Will Increase Company Retention

Why no one wins when there is constant employee turnover

Constant employee turnover is costly and time-consuming. Not only do you have to worry about the cost of hiring and training new employees, but you also have to deal with the negative impact it has on morale. Additionally, high turnover rates can be a sign that something is wrong with your company culture or that your employees are not being treated well. If you want your business to succeed in the long run, it's important to address these issues head-on.

How to manage employee turnover and boost retention

If you're struggling with high turnover, there are a few things you can do to try and mitigate the issue. Firstly, it's important to consider your hiring process. Do you take the time to interview and select employees that are the best fit for your team? Secondly, think about how much responsibility each new hire is given when they start working for your company. Lastly, it's imperative that you don't take advantage of your employees by overworking them or not paying them enough. When done properly, these strategies should help reduce high employee turnover rates.

If you want to ensure higher employee retention in your company, there are a few key things you can do:

  1. Don't overwork your employees. Make sure they have a good work-life balance so they don't feel taken advantage of.
  2. Be open to feedback and constructive criticism. This will show your employees that you're invested in making the company a better place to work for everyone.
  3. Offer competitive salaries and benefits. This will help attract and retain top talent.
  4. Promote from within whenever possible. This shows your employees that there are opportunities for advancement within the company.
  5. Foster a positive and supportive work environment. Employees who feel like their contributions are valued will be more likely to stay with the company.
  6. Train new hires on what it means to be an integral part of the team and provide resources to support them through any struggles they may face at work (e.g. ensuring they have access to flexible scheduling).
  7. Be transparent about changes that could affect the workday or any other aspects of employment (e.g. layoffs).
  8. Treat each individual with respect, dignity and appreciation while giving them the opportunity to succeed in their job role as best as possible.

If you have a high employee turnover rate, then it's time to revisit your inner business practices to determine why people are leaving so you can create a stable, healthy work environment that allows both your business and employees to flourish.

Lesley Pyle

Entrepreneur Leadership Network® Contributor

Founder & CEO of HireMyMom.com

Lesley Pyle began her work-at-home career in 1996 with the launch of her first website "Home-Based Working Moms." She has continued her passion of helping moms and small businesses for over 25 years now. Pyle was named one of “50 Women Entrepreneurs Who Inspire Us” by Self-Made magazine.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

'Creators Left So Much Money on the Table': Kickstarter's CEO Reveals the Story Behind the Company's Biggest Changes in 15 Years

In an interview with Entrepreneur, Kickstarter CEO Everette Taylor explains the decision-making behind the changes, how he approaches leading Kickstarter, and his advice for future CEOs.


Is Consumer Services a Good Career Path for 2024? Here's the Verdict

Consumer services is a broad field with a variety of benefits and drawbacks. Here's what you should consider before choosing it as a career path.

Business Ideas

87 Service Business Ideas to Start Today

Get started in this growing industry, with options that range from IT consulting to childcare.

Business Models

How to Become an AI-Centric Business (and Why It's Crucial for Long-Term Success)

Learn the essential steps to integrate AI at the core of your operations and stay competitive in an ever-evolving landscape.