High-employee turnover creates big costs for employers. Each employee hired requires the company to invest in recruiting and training, in addition to salary and benefits. Once employees are up to speed, they are more productive and gain a momentum that can last their entire tenure, if kept motivated. Getting a new employee up to speed takes more than training. Often, months or years of on-the-job experience is necessary.

Churn also affects employee morale. Once a disgruntled employee quits, other team members start to think of quitting themselves. Often, departing employees take team members with them to new companies. When churn is too high, companies lack stability, possibly leading to customers experiencing diminished service. Client-facing positions with high churn tell customers that the company has internal issues.

Deciding that high churn hurts is the first step in building a more stable organization. The next step is figuring out what may cause churn in an organization. According to Heather Huhman, founder and president of Come Recommended, the most typical reason for high churn is that employees feel they have a job instead of a career. When employees feel they are at a job, they are in it for the paycheck. They need the job to pay the bills; however, they see no long-term future. Worse, they may feel little investment in the company’s mission. Below

1.Hire for potential

When employers hire simply to fill an immediate need, favoring candidates they can slide into position right away, they tend to create an environment with churn. Though hiring skilled employees is essential, it is also important to consider a candidate’s potential to grow with the organization. Between two employees with equal skills, it is better to hire one with more potential to advance with the company. Because an employee feels like their job has the possibility of evolving into a career, they are more likely to remain with the organization.

2.Engage employees in the company mission and goals

When employees feel that they are a part of the overall mission and see how their work contributes to the organization’s goals, they are engaged. With engagement comes a sense of purpose that reduces burnout as well as churn. Employees are happier, more dedicated, and perform better, increasing the likelihood that they stay with an organization. Transparency and company initiatives are all great ways to generate engagement.

3.Train for future roles and build a team environment

Employees who know that part of their responsibilities include preparing for their next role in the organization feel they have a future. They know they are on a career path, and they will work hard to advance. A company can support this by establishing a tenure track for different positions and responsibilities, giving employees a sense of when they can expect promotion.

Though individual goals are crucial, a team environment must also be fostered. When employees feel they are united, they are happy and productive. They feel they work in a great place with a strong culture, and that makes them more likely to stay.