How to Reduce Employee Turnover in a Large Organisation: 5 Proven Ways

In this guide, I’ll help you discover the common causes of employee turnover in your large organisation. You’ll also learn how to reduce employee turnover in your organisation. 

Is this guide for you?

If your company has 50+ employees, I consider it a large organisation (though the textbook criteria is 250+ employees). So, this guide is for you.

If too many employees leave your company quickly, This guide is for you.

Also, if you’re the new HR head and want to ensure your employees stay, this guide will show you why they may leave so you can stop them from leaving.

Let’s get started. 

What are the causes of employee turnover in large organisations? 

The first step in retaining highly valued talent in your large organisation is understanding why your employees might seek new employment.

In most cases, your employees will quit for one of the following reasons:

• Inadequate salary: If you don’t compensate them fairly, they will look for better jobs.
• Excessive workload: Employees quit when they feel overwhelmed and burnt out. 
• Lack of recognition: Employees who are not recognised for their milestones feel undervalued and decide to leave.
• Lack of career improvement: Lack of career advancement leads to employees leaving the company.
• Lack of flexibility: Employees will seek other employment options if you don’t offer flexible work arrangements.
• Poor management: Employees will leave a company when the manager mistreats them. 
• Lousy company culture: Toxic corporate cultures cause employees to leave companies and seek more peaceful surroundings. 

You now know some of the causes of employee turnover in large organisations. You may also be interested in what causes employee turnover in small businesses.

Let’s explore how to reduce them. 

How do you reduce employee turnover in your enterprise organisation?

Here are 6 ways you can reduce employee turnover in your organisation.

1. Maximize employee experience levels 

In my experience as VP of HR at Telebu, your employee experience levels can help reduce employee turnover.

You can reduce employee turnover by enhancing your experience (EX). 

Now, how can you improve the employee experience?

Improve your work environment and work culture. Do this, and you’ll be off to a great start.

But that’s not all. There’s still a lot to employee experience, and we covered everything in our comprehensive guide on employee experience.

2. Develop leadership skills

I’m not talking about the C-suite leaders.

Though they’re also a major part of it, I’m talking about team leaders, managers, and supervisors—those in constant direct contact with your employees.

By focusing on leadership development at the operational level, you can reduce employee turnover.

But what can help you develop leadership skills on an operational level? 

Have one-on-one meetings with team leads and managers regularly to understand how they manage their team members. As well as help them manage and resolve conflicts effectively. 

Another skill I believe you can teach them that will help them be effective leaders is good team communication. Whether remote, in-house, or hybrid. Check out our guide to effective internal team communications to learn more.

3. Put Finnegan’s Arrow into place 

Dick Finnegan, Speaker, Author, and CEO of C-Suite Analytics, explains a proven way of reducing employee turnover. 

Dick says employers who want to reduce employee turnover should put Finnegan’s Arrow into their workplace. 

Now, what’s Finnegan Arrow’s rule? 

This video explains it.

This is a quick summary of how Finnegan’s arrow helps reduce turnover in your company.

• Quantifies turnover: It gives every employee a dollar value. So when an employee leaves, you know it’s not just a person to be replaced but a cost you incurred—or, better yet, money you lost.
• Plans for retention: If you have a yearly employee retention goal, you’ll figure out how to achieve it. This gives you control of turnover and keeps more good employees with you.
• Understand retention: If you know what will make an employee stay, you’ve cracked the code.

The video contains more info.

I’ll recommend you get started by quantifying turnover so you know how it affects your bottom line.

4. Stay interviews

As mentioned in Finnegan’s Arrow, stay interviews work like magic. 

If you can conduct as many stay interviews as possible and implement what you gather, you’ve gotten the golden wand for employee turnover.

When an employee is not performing well and is considering leaving, a stay interview is the best way to retain and get them to stay for a long time. 

How do you conduct a stay interview?

When you find an employee who may want to leave, you reach out to them and schedule a catch-up call. That’s what I like to call it, to keep it casual. Calling it an interview will make it too formal and may lead to your employees entering their shells.

In the stay interview, you ask your employees questions that help you determine what needs improvement.

Examples can include:

• How well are you enjoying your work?’
• When was the last time you received feedback on your performance?
• How much longer would you love to stay with us?

If you devote some time to think about it, you’ll figure out a truckload of questions you can ask.

5. Enable effective and open communication 

See if you can implement a flat organizational structure style of communication where anyone can talk to anyone.

Also, ensure your team members are always meeting and interacting with one another, especially if you manage a remote team.

In my experience managing a remote marketing and HR team, I’ve realized that my team members easily experience work burnout and disconnect from work when they feel alone.

When your employees feel like they’re a part of the team, they’d love to stay long with your company.

You can start by ensuring your team communication app is easy to use and encourages your employees to communicate instead of fighting through complicated features.

I recommend you try Talk Magnet, a lightweight and easy-to-use app with features like voice and video calls, instant messaging, and file sharing. 

Schedule a demo to see how Talk Magnet works, or sign up and get started for free.