Employee turnover is a costly challenge for businesses, with the average cost of replacing an employee in the UK around £25,000 per worker, factoring in recruitment expenses and lost productivity. Inclusive hiring practices, including providing opportunities to those with prior convictions, offer a powerful solution to this issue.
By embracing diverse recruitment, organisations can reduce turnover and foster loyalty, engagement, and long-term retention.
This guide explores strategies to reduce employee turnover, the benefits of hiring ex-offenders, and how fostering an inclusive company culture can help you retain talent.
Our missionAt Offploy, we specialise in empowering businesses to implement inclusive hiring practices that focus on providing opportunities for people with prior convictions.
Our expertise lies in helping organisations navigate the complexities of recruiting and supporting ex-offenders, ensuring they not only attract but also retain this motivated and loyal talent pool. |
The Employee Retention and Turnover Problem
Employee turnover remains a significant issue for businesses in the UK, with three in ten employees leaving their jobs to join another organisation annually. Many employers face high turnover rates due to factors such as a lack of employee engagement and limited career development opportunities.
The cost of employee turnover can be staggering. On average, replacing an individual employee can cost up to 6–9 months of their salary due to recruitment expenses, onboarding, training new employees, and lost productivity. These turnover costs also affect morale, as team members may feel overburdened by the departure of colleagues and the increased workload.
According to Gallup’s 2023 employee engagement meta-analysis, teams in the top quartile for engagement experience 23% higher profitability and 14% higher productivity, while disengaged employees are more likely to leave the company. Additionally, 92% of employees would consider leaving their jobs for companies with better reputations and company cultures if offered another role, highlighting the need for employers to focus on retention strategies.
To address these causes of employee turnover, organisations must implement strategies that prioritise a positive working culture, employee engagement and career development.
What Causes Employee Turnover in the Workplace?
Employee turnover is a complex issue influenced by a variety of factors, many of which stem from gaps in management practices, career development, and workplace culture. Understanding these causes is essential for businesses seeking to reduce turnover and retain top talent.
The underlying causes for a high turnover rate
One of the leading causes of employee turnover is a lack of career progression and development opportunities. According to research, 31% of workers cite the absence of reskilling and upskilling opportunities as their primary reason for leaving their roles. When employees feel their growth is stagnant, they are more likely to seek new positions that offer clear career paths and learning opportunities.
Management support also plays a crucial role in employee retention. It has been found that team members are three times more likely to consider leaving their current position if they feel unsupported by their managers. This lack of support can manifest in various ways, including insufficient feedback, a lack of recognition, or failure to address employee concerns.
Other key factors contributing to employee turnover include poor work-life balance, inadequate compensation, and misalignment with company culture. Each of these factors can lead to disengagement and dissatisfaction, increasing the likelihood of employees seeking new opportunities elsewhere.
By addressing the causes of employee turnover—such as investing in career development and ensuring strong management support—businesses can create a workplace where employees feel valued, supported, and motivated to stay.
How Hiring Ex-Offenders Can Help to Reduce Employee Turnover
One of the most underutilised and undervalued employee retention strategies is tapping into the talent pool of those with prior convictions. Individuals with criminal records often face significant barriers to employment, but when given the opportunity, frequently demonstrate loyalty, high performance, and dedication to their roles.
The benefits of hiring ex-offenders
Hiring ex-offenders not only helps employers fill vital skills gaps but can also help to reduce employee turnover rates. Research by the Ministry of Justice shows that 86% of employers of ex-offenders rate them as good at their jobs, with many highlighting their strong work ethic and motivation to succeed.
Inclusive recruitment practices also enhance a company’s reputation. Within the same report by the Ministry of Justice, it was found that 92% of employers who prioritise diversity in their hiring process report improved company reputations, which can attract top talent and boost retention efforts.
Organisations like Halfords have seen measurable benefits from hiring ex-offenders. “We have found that the level of retention of our graduates from the [prison] academy is higher than the level of retention of our normal employed sales floor workers,” the company shared. This is a fantastic demonstration of how inclusive hiring practices can improve employee retention rates and reduce turnover costs.
By hiring people with the right skills from underrepresented groups, businesses can reduce turnover and create a workplace where all employees feel valued and likely to stay.
Building a Company Culture That Retains Top Talent
Reducing turnover starts with fostering a company culture that prioritises inclusion and employee satisfaction. To retain top talent, organisations must focus on improving employee experience, providing career development opportunities, and maintaining a supportive workplace.
Tips to reduce employee turnover
Prioritise inclusive leadership: Leaders must champion diversity and make employee recognition a core part of the company’s culture. This study found that inclusive teams are 17% more likely to consider themselves high-performing, and companies with a strong focus on inclusivity are 1.7 times more likely to lead their market in innovation.
Provide support networks: Creating mentorship programs and employee resource groups helps team members feel appreciated and engaged. Almost 7 in 10 employees report that recognition and rewards play a key role in maintaining their loyalty to their employers.
Offer career development opportunities: Implementing clear career paths and learning and development programs motivates employees to stay within your organisation. 94% of employees say they would remain with a company longer if it demonstrated investment in their career development.
By improving employee morale through strategies like prioritising inclusive leadership and providing appropriate support networks, organisations can retain top talent and avoid high turnover rates.
In summary:
Reducing employee turnover is preventable when organisations implement inclusive hiring practices and build a workplace culture that prioritises employee retention.
By addressing the causes of employee turnover, fostering engagement, and offering opportunities for career development, businesses can retain top talent and achieve long-term success.
We’re Here to Help: Let Offploy help you implement strategies to reduce turnover and improve retention. Contact us today to learn how inclusive hiring can benefit your organisation.