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3 ways to reduce employee turnover

April 26, 2017

The following article was contributed by Carol Wood, People Operations Director at Homebase. Read more employee management posts from Homebase and other Staffing & Human Resources articles here on the Clover blog.

A recent study found that the annual turnover rate among hourly employees hovers around 49%, meaning roughly half of most restaurant and retail employees will leave their jobs within the year.

The same study found that the cost of turnover to a business is almost $5,000 per employee, so anything you can do to reduce turnover is a win-win for you and your team. We’ve got a few ideas on how you can keep your team happy and engaged in your business:

Offer some schedule flexibility

If you’re using an employee scheduling app like Homebase, you can make it a little easier for your employees to work when it fits their schedules, rather than the other way around.

They can trade shifts (with manager approval), request time off, and update their availabilities instantly, even if it’s for a one-off event. It’s a lot easier for your team than having a set schedule that repeats week after week, and it won’t add much work for your managers as they build the weekly schedule. And best of all, this won’t cost you anything.

Reward your most senior employees

Of course, promoting your best employees is a no-brainer, but there are other ways you can show your appreciation if you can’t offer a promotion right now. Start small—entrust your most valuable team members to make some business decisions on their own, even if they’re relatively minor. Also try rewarding your best team members with preferential scheduling, so they get first pick at choosing their hours for the coming week.

Encourage employee referrals

Great people know great people, and they probably want to work with them, too. Offer a referral bonus for anyone on your team that recommends potential hires (to be paid after the new employee starts). Everyone will love working with people they can trust, and having a positive work environment will likely translate into better customer service as well.


Carol is People Operations Director at Homebase. With free online tools and mobile apps for managers and employees, Homebase eliminates the paperwork and headaches of schedulingpayroll, and team communication for local business.

At Homebase, Carol focuses on providing thought leadership, tips and tricks, and scalable HR solutions for the 50,000 businesses that Homebase serves. Prior to Homebase, Carol focused on helping small and medium businesses navigate the tricky waters of human resources, working with companies across the retail, food service, oil and gas, and healthcare industries through her roles as HR Director at Fuddruckers and Achilles Group, a Houston Based HR consulting firm. In her free time, Carol enjoys spending time with her son Dayton, and watching Alabama football (RTR).

[image: LeDiplomate9.14Q.NW.WDC.9May2015 by Elvert Barnes on flickr]