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Effective Strategies to Reduce Employee Turnover and Improve Hiring

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By Taggd Editorial Team

November 2, 2023


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Attrition rates, not just in the IT sector but across various industries in India, have seen a notic­eable increase in recent times. A survey conducted by AON PLC found that during the first half of 2022, the average attrition rate reached an alarming 20.3%, significantly higher than histo­rical averages. Termed as the “Great Resign­ation,” this pheno­menon highl­ights a swift transfo­rmation in India’s emplo­yment lands­cape, posing signi­ficant chall­enges for busin­esses.

The increasing rate of employees leaving presents a significant challenge for organizations trying to retain a skilled and reliable workforce.

In response to the changing job market, busin­esses must take a proactive approach. This blog aims to offer valuable insights and practical solutions to navigate the challenges of employee turnover and improve hiring practices. 

Understanding the Reasons for Employee Turnover & Effective Strategies

Lack of Job Satisfaction

When employees feel unsat­isfied with their jobs, it can often be attributed to insufficient compen­sation and benefits. Additionally, limited chances for career advan­cement can contr­ibute to this dissatis­faction. Organizations should consider providing compe­titive compen­sation packages and clearly defined paths for professional growth to address these issues. Condu­cting regular salary asses­sments and offering opportunities for skill enhan­cement can help enhance job satisf­action and disco­urage employees from seeking more lucrative positions elsew­here. Companies like TCS and HDFC Bank, listed in the Best Companies to Work for 2023, combat this by investing in reskilling, offering competitive compensation, and emphasizing learning and development. Furthermore, promoting a positive work-life balance and culti­vating stimu­lating job roles can greatly improve overall job satisf­action and employee retention rates. One of the primary HR initi­atives at Google India is offering flexible work arrang­ements for employees, which demons­trates the organization’s commi­tment to their well-being, leading to a lower turnover rate. 

Ineffective Management:

When leaders and managers fail to communicate or address employee concerns effectively, it can lead to a toxic work environment and damage trust. To combat this, organizations should prior­itize leade­rship development programs to improve management skills and promote open lines of communication. Encou­raging managers to provide feedback and recognition regularly helps employees feel valued and engaged. Feedback is crucial for identifying areas of improvement and making employees feel valued. ICICI Bank, recognized as one of the best companies to work for in 2023 by Taggd, provides a convenient app that addresses employee queries in one place. Additi­onally, offering training and development opportunities demons­trates a commi­tment to employee growth, ultimately reducing the risk of employee turnover.

Cultural Mismatch:

When an employee’s values don’t align with the company’s culture, it can lead to employee turnover. To address this issue, organizations should prior­itize commun­icating their values and culture during the recru­itment process to ensure a better fit between new hires and the company ethos. Additionally, creating a more inclusive and suppo­rtive work environment can reduce feelings of being undervalued or unsupp­orted. However, forward-thinking companies utilize hiring platforms that evaluate cultural compat­ibility during the recru­itment process. This allows them to align values and culture right from the start and minimize the chances of encoun­tering cultural conflicts. Most companies listed in the Best Companies to Work For 2023 have some initiatives of employee-centric culture to retain their top talent. 

Limited Advancement Opportunities:

Lack of defined career paths and limited opportunities for advan­cement can greatly contr­ibute to employee turnover. To address this, companies should prior­itize establ­ishing trans­parent career development plans and providing regular performance assessments. Additionally, offering mento­rship and coaching programs can help employees better grasp their potential for growth within the organization. When employees clearly understand how to advance in their careers, they are more inclined to stay committed to the company and invest in their long-term professional goals.

Workload and Stress:

Employee turnover is often fueled by work-r­elated stress and overwh­elming workl­oads. Organi­zations can combat this issue by priori­tizing a healthy work-life balance, which includes implem­enting employee-centric culture arrang­ements and establishing realistic expectations for employees. Additionally, providing stress management programs and resources can assist employees in effectively managing workplace press­ures. By strongly emphasizing employee well-being and mental health, companies can minimize burnout and reduce turnover rates.

Personal Reasons:

Personal circumstances often influence employee turnover. Organizations can consider implementing remote work or flexible schedules to address these situations to support employees facing family oblig­ations or other personal changes. Companies need to maintain open lines of communication with employees to identify and address any potential issues early on. Companies can retain valuable talent by demons­trating empathy and flexi­bility during challenging personal transi­tions. Conducting exit interviews would make you better understand the reason and implement the strategic solution. 

Company Reputation:

A company’s negative reputation can greatly impact employee turnover. In today’s digital era, information about companies spreads quickly, and potential employees are more cautious about joining organizations with a poor reputations. By actively managing and enhancing their reputation, companies can reduce the risk of turnover stemming from concerns of integrity and stabi­lity. This approach not only retains current talent but also attracts top candi­dates who value a positive organizational image directly or through a digital recruitment platform.

Wrapping Up

Employee turnover is a complex issue that arises from various contri­buting factors. Forward-thinking organi­zations are embracing innov­ative strat­egies to stay resilient and compet­itive, surpa­ssing tradi­tional appro­aches. Looking ahead, companies that can adapt, innovate, and prior­itize the needs of current and potential employees will chart a path toward success in the ever-c­hanging work lands­cape.

By Taggd