6 Habits To Reduce Employee Turnover At Work

If you thought that The Great Resignation was bad, consider this: U.S. employee turnover is expected to jump by nearly 20% this year, from an annual average of 31.9 million employees quitting their jobs before the pandemic to 37.4 million quitting in 2022, according to Gartner, Inc. Thankfully, you can be proactive about combating this trend – but you want to focus on engagement instead of retention, says Brian Formato, an HR expert with over 25 years of experience and the principal at Groove Management.

“To combat employee turnover, leaders need to recognize the root cause of turnover. In most cases, turnover is caused by a lack of engagement. Too many leaders focus on retention rather than engagement,” he says. “There are plenty of organizations with low turnover because employees retire in place. The best leaders actively engage their employees and keep the work interesting.

Formato shared his wisdom and the best habits you can embrace to combat dire employee turnover trends below.

1. Focus on engaging people – not throwing money at them

Obsessing about retention is counterproductive because it’s the equivalent of playing defense. As Formato puts it, “if all you play is defense, the best you can do is tie at zero.”

Retention bonuses may seem like a good solution, but they can encourage people to stay for the wrong reasons. “A recipe for retention is to overpay people and ask less of them. That is a recipe for disaster but it appeases the turnover statistic. Don’t run your team from a spreadsheet. Get to know the people,” he says.

2. Genuinely get to know each team member

Taking the time to genuinely get to know each one of your team members on a personal level requires emotional labor and devotion, but it can go a long way, especially if you also focus on tailoring your leadership to meet individual needs.

“Catering the individual needs of each employee personalizes the leadership approach. Everyone has their own sh*t” going on in their lives outside of work. A good leader is a good sounding board, and compassionate to the needs of the individual. Being heard is important to employees, and when an employee knows the boss cares, they are much more engaged,” adds Formato.

3. Get clear on your purpose and impact

Words like purpose and impact can easily sound fluffy, but it’s actually important to get clear on the reason your team exists and the value that each person and role creates for the organization. Formato suggests writing a purpose statement that outlines those things, as a team without a mission is “rudderless.”

“Having a clearly defined reason for being gives employees something to strive for. Knowing your place on the team and how what you do matters to the organization’s overall success creates a value proposition. People want to feel valued.”

4. Give feedback daily and don’t be afraid to challenge people

Feedback is crucial, so offering feedback on a daily basis is a good habit for combating employee turnover. Challenge your team. Praise your team. Do both. Embrace mistakes as teachable moments and learning opportunities says Formato: “When employees receive feedback they know they are being paid attention to. Knowing where you stand and how you are performing creates engagement. In fact, the times in my career I was most engaged were the times I was least satisfied. I wanted to make things better.”

5. Enable team success and cohesiveness

As a leader, your job is to foster an environment where your team can collaborate and flow. “Build team cohesiveness such that the team members are mutually accountable for the success of the team. If someone is considering leaving, they would be letting down their teammates,” according to Formato. “As the leader, your job is to enable team members’ success, clear hurdles and get them the recognition they deserve.”

6. Invest in team-building and individual development

When it comes to employee engagement, you reap what you sow. Invest in team-building and personal development plans for each person, recommends Formato. This shows an investment in their contributions and future. “People tend to stay when they see a return on investment and they leave when they no longer see a return.”