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A high employee churn rate is every employer’s worst nightmare. Defined as the percentage of employees who quit within a specific period of time, the churn rate reflects a company’s ability or inability to retain workers. According to research published by the Society of Human Resource Management (SHRM), it costs up to nine months of an employee’s salary to replace that employee. An employer, for instance, may spend $27,000 to replace an employee earning $36,000 per year. By taking action to lower their churn rate, however, employers can save money on recruitment while fostering a more positive working environment in the process.


Identify the Cause

The first step to lowering a company’s churn rate is to identify the cause. In other words, why are employees quitting? Maybe it’s due to lack of recognition from upper-level management, or perhaps it’s low pay. According to a Gallup survey, half of all employees quit because they have a poor relationship with their manager. Once the employer has determined why employees are leaving, he or she can implement the necessary changes to their company.


Share Success With Employees

Employers can lower their churn rate by sharing their company’s success with their employees. Giving employees stock options, for instance, makes them feel closer and more connected to the company. When the company succeeds, its stock value increases, thereby rewarding its employees.


Create a Business Operations Plan

All companies need a business operations plan to survive periods of high employee churn. This document outlines the specific details on how to execute the company’s operations, including the necessary jobs and their duties. When a company experiences a high churn rate, the employer can refer to this plan to fill the vacant positions more quickly and effectively.


Host Team-Building Activities

Another way to cope with a high employee churn rate is to host team-building activities. Whether it’s in the office or elsewhere, team-building activities bring employees together, making them feel like they are part of something larger. Employees will also feel a more personal connection to their coworkers, encouraging them to stay with the company. So, even if it’s nothing more than an after-hours kickball or softball game, employers should consider hosting team-building activities to cope with a high churn rate.


A high churn rate can be both expensive and damaging a company’s culture, but there are ways to turn it around. Most importantly, though, employers should hire the right employees to keep their churn rate in check.