Monday, August 7, 2017

What You Need to Do to Hire and Keep the Best Employees in Your High Turnover Business

Hiring for any business can be stressful. But when it comes to hiring in a “high turnover” industry, it can be even more challenging!

When you own a business that experiences a lot of employee turnover, you may find your initial hires to be quite easy. You have a lot of applicants and it seems that it is a “buyer’s market” with you, as the employer, in the driver’s seat.

That feeling of control over your employment situation, however, soon ends. Then it becomes a question as to how long you can actually keep them!

Retaining employees in some industries is much easier than in others. While a universal “ideal” turnover rate hovers around 10% or lower, some types of businesses routinely exceed that.

According to a CompData Survey that compiled data from over 30,000 organizations, industries with notoriously high Voluntary and Total Turnover rates include (Source1):

Hospitality ~ 20.7% / 28.6%
Healthcare ~ 15.3% / 18.1%
Banking & Finance ~ 15.3%  18.1%
Non-Profit Businesses ~ 12.2% / 15.7%
Service Industry ~  11.4% / 16.8%
Manufacturing & Distribution ~ 10.1% / 16.0%

According to this survey, a couple other industries fare marginally better:

Insurance ~ 8.8% / 12.2%
Utilities ~ 5.9% / 8.8%


For these companies, and their owners, it can feel like they are in the middle of an employment revolving door.  

Employers worry about the time it takes to hire and train each employee, only to have a number of them turn around and leave. They may also question how they can continue to fill the needs of their customers when so many of their employees come and go. A lack of consistency is definitely a cause for concern. 


So, if your type of company is on this high-turnover list, what do you do?

Your first step should be to understand “Why”. Why is your type of business more likely to be plagued by high turnover than other industries?

Often, the types of businesses on this turnover list offer lower than average pay and benefits, especially at the entry level. Limited opportunities to advance within these companies is also a factor. Restaurants, hotels and motels, and hospitals or care facilities fall into this category. 

Others, like retail and service industries, are effected by seasonal fluctuations, think things like “Black Friday”, holiday shopping, and even weather sensitive services like landscaping. These spikes in business require employers to increase their workforce to meet the demand. Then, when the busy season is over, many of those workers are no longer needed.  

Another reason for higher than average turnover in these industries is their amount of younger hires. Fast food restaurants often employ workers that are still in high school or who are on college break. The same goes for many in the hospitality industry. The majority of these hires are also part-time. These types of workers are rarely in it for the long haul. They are there to make some money and gain some work experience ~ then they move on. 





A less obvious, but just as impactful, reason for high turnover is that some employers in these industries don’t do background checks. 

Skipping the background check may seem like the cost-effective, smart thing to do. After all, your new hires won’t be there for long, so why bother?

This way of thinking couldn’t be further from the truth!

Not screening these employees won’t save you money in the long run. Incidents of employee theft and, more seriously, workplace violence, will cost you more in the end.


Screening every employee will not only help protect your workplace, it will also preserve the integrity of your workforce, your brand, and the reputation you have worked so hard to build.

You should, at the minimum, run a criminal history check. Finding out if your potential new hire has been convicted of violent crimes or theft is crucial. In addition, if a certain level of skill is necessary to complete their duties, then verifying those skills are also in your best interest.

What employers need to keep in mind is that as with any hire, protecting your company, your employees, and your customers must come first. Using a background check as a tool to that end is always in a company’s best interest, even if it is on temporary employee”.

Find out more tips about hiring seasonal, temp workers, or interns here!

Bottom line ~ Companies that screen every new hire are more likely to retain more and better employees than those who don’t.

So, if you are now willing to take the time and expense to screen your employees, it then makes sense to find ways to keep them. 






What can You Do to lower your Employee Turnover rate?

Changing the trend of “job hopping”, or high turnover, needs to start with you, the employer. Creating a work environment that offers real incentives for good employees to stay is the key.

To accomplish this goal, you should:

  • Enable your Employees to develop strong, marketable skills
  • Offer Your Employees real opportunities to progress 
  • Be as flexible as possible when scheduling work hours 
  • Encourage Employee Input 
  • Make your Employees feel Appreciated and Heard


Find out more about what you can do to keep your top talent in; “Tips to Help You Hire and Keep the Right Employees”!


Even taking these steps is not enough to entirely eliminate employee turnover.

The nature of many of these industries dictate that their hires will only stay a short while. Seasonal businesses, for example, will never overcome the ebb and flow.

However, addressing employee needs and offering incentives for good workers to stay, can make a difference.


Be the place people want to work. Treat your employees right. Do everything you can to build a strong relationship with all your workforce.


Taking the time to empower and engage your employees is good for you and your business. You will soon find that your hires are more invested in their work and in being a part of your business success! 


Authored by   






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Source1: Compensation Force Turnover Rates by Industry 

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