Reducing Turnover Rate To Control Labour Costs

Every company struggles with some amount of employee turnover rate, and it is fair to say that this is part of normal work life. Some employees will naturally choose to move to a new company in order to bring their career forward, others simply resign when they reach the end of their careers. In other words, there is no such thing as zero turnover rate. However, when the turnover rate is too high, this can have a significant impact on the company’s bottom line.

For a start, turnover dramatically escalates labour costs, as the business needs to invest in the recruitment process and the formation of new employees. Recruiting, onboarding, and training new employees can strain both your resources and your productivity. Besides, when an employee quits, their decision can disrupt the workflow and team dynamics, which can also affect the remaining members of staff. In short, turnover is a poison that can spread through your business faster than you realise!

What can you do to actively help reduce turnover rate? There are countless strategies available. So, in this article, we’ll focus primarily on workplace-related strategies. 


Invest in office design

The physical workspace plays a crucial role in an employee’s overall experience, especially if your team still needs to come to the office. An inspiring office design can foster a sense of belonging and can significantly boost productivity, well-being and teamwork among your workforce.

For example, open spaces equipped with quality furnishing, such as Solutions 4 Office selection, can be a game-changer. Old-fashioned settings with uncomfortable chairs and desks that fail to elevate either the style or the ergonomy of the office work are more likely to drive employees away! Working in a comfortable and enjoyable work environment is not a luxury but a necessary need for teams.

Embrace flexible work arrangements

Not every workplace requires the team to be present on-site. If the tasks can be performed remotely, it is worth offering remote work options and flexible schedules to promote employee retention. Many professionals value the freedom to balance work and personal life effectively. By accommodating these preferences, you not only attract top talent but also retain your existing employees who might otherwise leave in search of more flexible opportunities. 

Focus on perks

What job perks does your team truly desire? One thing is for sure, employees are not swayed by perks that promote a work hard play hard culture, such as free friday drinks or evening social events. Employees seek perks that fully support their needs and aspirations, such as a comprehensive healthcare plan, professional development opportunities, and even pet-friendly policies. As a rule of thumb, you want to focus on perks that are designed to improve your employees’ well-being, ensuring a stronger bond between them and the business. 

Create a safe and inclusive workplace

While this should be a no-brainer, many businesses fail to establish a true inclusive work environment. Indeed, many organisations talk the talk, but when it comes to walking the walk, there is nobody around. Places such as AND Digital, which actively promote diversity and inclusion, have recently laid off over 200 employees and received criticism about killing their inclusive culture. In brief, employees also want to see actions being taken when it comes to bringing positive values to life. 


Reducing turnover rates is all about prioritising strategies that can create a happier, more stable workplace. Remember, what comes around goes around, and your reputation for high turnover rates could kill the business in the long term.