How does a company go about reducing employee turnover and increasing retention?

The right people are recruited from the outset in jobs that are appropriate to their experience and qualifications and applying right policy to the organisation

To reduce the turnover of staff, the right people are recruited from the outset in jobs that are appropriate to their experience and qualifications

Create a happy atmosphere within the company. s

Firstly know the reason why employees are leaving.

Plan a retention plan

Survey why employee are leaving .Make strategie for keeping good employees in  a  business.. 

Hire the right people

The best way to ensure employees don’t leave you is to make sure you are hiring the right employees to begin with. Define the role clearly—both to yourself and to the candidates. And then be absolutely sure the candidate is a fit not only for it, but for your company culture.

Fire people who don’t fit

Stop hiring poor people. Avoids having to fire them later.Fire anyone who isn't a team player, even if they're the most productive member of your staff.

Meeting

Hold monthly meetings where you are completely transparent about the company goals and shortcomings.Ask every single employee what you can do to make things better for them and their career.

Keep compensation and benefits current

Be sure that you are paying employees the fair going wage for their work (or better) and offer them competitive benefits.

Encourage generosity and gratitude

Encourage pro-social behavior in your employees. When they are given the opportunity to connect with one another through acts of generosity and the expression of gratitude, employees will be healthier, happier, and less likely to fly.

Offer flexibility

Today’s employees crave a flexible life/work balance.

Prioritize employee happiness

Investing in the happiness of your employees will pay dividends in engagement, productivity and yes, retention. 

Make opportunities for development and growth

Investing opportunities for development and growth.

 

You need to know why they leave.  This is not as simple as having an exit questionnaire, you have to communicate with the existing staff to find out what they like and dislike about working there.

 

Commonest reasons for leaving are:

- lack of opportunity (training, promotion)

- feeling [i.e. being] unappreciated

- unpleasant work culture / atmosphere

- money & benefits

 

In other words, pay your staff the going rate, train them properly and make sure the managers are competent.  If you have lots of staff turnover you're probably doing at least one of these things wrong.

I'm no professional, this is just what I've learnt at university along with a basic understanding of human nature, but listed below are some things a company facing high employee turnover can do:

-Determining the reason behind employee turnover. Is it dissatisfaction amongst employees, better job opportunities offered by competing firms, etc. This is the job of not only the HR department (holding exit interviews either in person or in the form of questionnaires ensuring anonymity of employees). but also of line managers as they have closer contact with employees thereby making it easier for them to accurately identify the cause. Going straight to the source and asking current employees directly as well could be an option for companies if they use software such as online polls however it may not be too accurate as individual employees could have highly varied wants and needs and polls will only have a handful of options to choose from, providing a skewed result.-Increasing motivation amongst employees. Demotivation is a common cause for employees changing jobs if they are feeling under appreciated at their current place of work. This can be remedied by entrusting employees with greater responsibility, using internal recruitment to fill open positions and giving recognition to employees for a job well done (this does not necessarily need to be an extrinsic reward such as monetary gains but could instead be an intrinsic reward as simple as a congratulatory email circulated amongst the team/ department).-Instilling a sense of company loyalty. Investing in employees in the form of training and development will show them that the company encourages growth. Offering rewards in the form of stock options or shares in the company is also an effective way of instilling loyalty as people will be likely to work harder and care more if they are expecting direct benefits.:)