Employee Turnover and Incentives

Employee turnover can be expensive, especially for a small business with few employees. Some of the industries highly effected by high turnover rate in Malaysia are like the call centre industry, fast food industry, and customer service industry  Every time an employee leaves, there may be expenses for advertising the position and training the new employee. To decrease the employee turnover in any company, it's crucial to keep the employees happy where they are.

Here are some suggestion to the Human Resource Managers on what to do to reduce the turnover rate. The key point here is to keep the employees happy. 

• Offer them a fair working condition and above average pay. You can actually do a 'market research' on the pay and benefits your competitor are giving. Raise employees pay when necessary.
• Be a down-to-earth Boss. Get to know your employees. Understand their concern and be attentive to their complaints. Be accessible anytime an employee has a problem for you to solve. Accept suggestions even from low level employees.
• Think on incentives that will decrease the turnover. Offer unique incentives for specific level of productivity. Give incentives regularly when warranted apart from bonuses Be creative with the type of incentives that will excite your employees and you can be assured every employee will be interested in staying for the next round of incentives. 
• Allow promotional opportunities. Listen to employees who want to cross train for other skills or to be considered for promotions. Remember that employees will be more willing to stay if they have a future with the company.
• Start with quality employees with a good work history. Look for employees who have few or nonexistent gaps in their resumes. Hire employees with a history of company loyalty and job retention.
• Stay in communication with your employees. Stay ahead of any problems that might be brewing among the employees and try to keep the workplace pleasant. Make each employee feel like an important and irreplaceable part of the company.

Happy employees are productive employees

Remember, being unique from your competitor does not only appliy to the products, marketing gimmick or promotions. It also applies on keeping employees loyal and happy working with you.