4 Ways to Build a Company Employees Just Don't Want to Quit Sometimes good people leave for better opportunities but high employee turnover is a very expensive indicator your company culture is unhealthy.

By Firas Kittaneh Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

When an employee quits, you don't just lose the time, money and effort you invested in that person. According to an article published by Vocoli, you also threaten to overwork the remaining staff and lower the productivity of your team. Further, you then need to allocate more funds towards interviewing potential replacements and training them.

To bypass the headache and hidden costs associated with the departure of an employee, take preventative measures by tweaking your hiring strategy, benefits packages, and culture. Here are four tips on how to reduce employee turnover and improve your company culture.

1. Be selective.

Before even thinking about how to retain your staff members, start by imagining what kind of people you want working for you in the first place. Picking the right talent for the job is imperative to facilitating long-term growth for the employee and stability for the company. But what should we look for in the screening process?

Anthony Tjan, CEO of venture capital firm Cue Ball, suggests focusing on character instead of skills or pedigree. He writes, "While skills can be learned, it is much harder to cultivate attitude and character. There is no doubt that over time, institutional character and culture is the simple by-product of individual people."

By hiring individuals with the best chance of being happy performing their duties on the job, you increase the chances of employee retention and cultivating a positive work environment.

2. Offer stellar learning opportunities and benefits.

Once you have the best talent on your team, make sure you can add value to their careers. Offer professional development via conferences, workshops, classes and team-building excursions. Providing relevant out-of-office opportunities for growth will allow your staff to bring fresh ideas and a sense of camaraderie back to home base.

Additionally, make sure your team's fringe benefits are fair and up-to-date. Towards this end, utilize your human resources department to its fullest capacity by making sure your employees' benefits packages get reviewed yearly and updated as needed. Also, consider creating personalized perks for the staff to increase morale and promote better company culture.

Related: Young Talent Demands These 6 Things for Their Loyalty

3. Establish an employee-oriented culture.

A culture deeply-rooted in employee feedback and two-way communication fosters a collaborative environment where everyone feels they are a part of the bigger picture and not cogs in a machine.

Willis Mushrush, a University of Missouri business development specialist, notes that companies with an employee-oriented culture tend to experience low turnover. Furthermore, they "solicit input and involvement from all employees and maintain a true open-door policy, avoiding closed-door meetings as much as possible. Employees are given the opportunity for advancement and [are] not micro-managed... Employees must believe they have a voice and are recognized for their contribution."

In addition to promoting transparency and honesty, being employee-centric also means being flexible with your staff's working schedules. Breaking out of the 9-5 grind and allowing employees to telecommute has been shown to lead to better health outcomes, increased happiness and higher productivity.

Related: Data Reveal the 7 Factors for Optimal Employee Retention

4. Stick to your values.

Perhaps the most important thing about developing good company culture is to stay true to your values and consistently lead by example.

On building a business and being a leader, Tony Hsieh, CEO of Zappos, said, "Chase the vision, not the money. Passion will get you through the tough times, rub off on employees and have a ripple effect on customers, suppliers and business partners."

Identify your core values and what your company stands for first and foremost. Sticking to those principles through thick and thin sends the message that you are dedicated to the cause. Your team will then pick up that working for your company means sharing that same gritty attitude, persevering through hard times, and challenging each other to accomplish more.

Related: 6 Steps to Adopting Core Values That Stick

Firas Kittaneh

Serial Entrepreneur • CEO at Amerisleep • CEO at OCLU

Firas Kittaneh is a serial entrepreneur and co-founder of amerisleep. Most recently, he launched OCLU to improve how we record our most memorable moments.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

'I Was Called Crazy': This 27-Year-Old's Side Hustle Hit $30,000 a Month in Under a Year — Now It's Worth Millions

Changing regulations forced Angel Rodriguez's jet ski rental company to shut down, and the young entrepreneur had to figure out his next move — fast.

Side Hustle

This 30-Year-Old's $6,000-a-Month Side Hustle Started Making Money 'Immediately' — But He's Not Quitting His Day Job

Derrick Mathy works in orthopedic surgical device sales and is on a mission to bring people together in real life.

Business News

'Unprecedented in Our 53-Year History': Southwest Airlines Announces Its First Mass Layoffs Ever

The airline is eliminating 15% of its corporate workforce, including many in senior leadership positions.

Business News

Elon Musk's xAI Claims Its New Grok 3 AI Is Better Than ChatGPT and DeepSeek: 'Seeing the Beginnings of Creativity'

xAI debuted the new AI on Monday, claiming it has 10 times the computational power of Grok 2.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Marketing

14 Amazingly Free Stock Photo Websites

Looking for the perfect image for your next project? Try some of these free online resources.