10 Ways to Improve Employee Retention (and Save Some Major Cash)
So which end of the spectrum does your company lie on in terms of employee retention? Do your employees stay with you for long periods of time, or do you have to deal with a continuously revolving door as people start and then quit?
If you have a staff of long-term employees…congratulations. You are one of the few businesses that does not have an employee retention problem. But if you are seeing your costs skyrocket due to high employee turnover, you may need to make some major changes to retain the most valuable part of your business – your workers.
Here are ten tips that will help you make sure your employees are productive and happy, and that they stay!
Create the Right Culture
Employees are not just looking for a paycheck. Well, that is not entirely true. Employees do want a paycheck, but they also want to find a place of employment where they feel comfortable. Look at your company culture. Is it the right one to attract the kind of people you need? Is it too rigid or too flexible? Are your facilities inviting? Whatever you are lacking (and you will find this out by talking to current employees and candidates), incorporate it.
Pay Well
Speaking of pay, salaries are important. No one wants to be underpaid. People do leave jobs in search of better salaries. Employees often find they can increase their salary by up to 20% by resigning and moving to a new company. Who wouldn’t jump ship for that kind of salary increase – all other things being equal? Therefore, as difficult as it may be ― when funds are low and budgets are tight ― you must pay competitive salaries. It will cost you much less than having to constantly replace employees who leave for other opportunities.
Offer Benefits
People will also leave for a better benefits package. The best workers expect access to good healthcare, 401Ks, insurance, etc. It is true that smaller businesses do struggle to compete with larger corporations in providing benefits, but you do not have to beat them. You just need to think a little more outside the box. Offers benefits that they may not from rigid larger companies, such as the ability to work from home, more flexible vacation offerings, performance bonuses/ profit sharing or even better training and educational opportunities.
Provide Unique Perks
Another way smaller companies can improve employee retention without breaking the budget is by offering unique perks. This does not mean that you need to mimic Google or Apple or Oracle (or other Silicon Valley companies) that are well known for their free meals, gelato bars, on-site dry cleaners, etc. Negotiate contracts with wireless phone carriers and for gym / local retailer discounts, offer paid leave for volunteer activities, tuition assistance, etc. Public transportation passes or free parking can also go a long, long way.
Focus on Right, Not Quick
If you lose an employee, does your hiring process hit warp speed? Do all you require is that your candidate pass the “mirror test”? If so, this is a recipe for disaster, since you are focusing on filling a job opening, not finding the best match for your job opening. You have options. Work with a reputable staffing company (like Snelling) that can provide a temporary employee to fill in, while you go out and recruit the best candidate. Or, if applicable, work with the staffing company to fill the position as a temp-for-hire opportunity.
Learn to Identify Job Hoppers
As you screen candidates, you need to pay close attention to signs that you may be interviewing a job-hopper. It is true that employees are moving around much more than in years past. The average tenure is now only 4.6 years. Now there is nothing wrong with someone switching jobs, if it provides career advancement. But you need to find and hire someone who is interested in working for you and helping your company reach its strategic goals. You do not need someone who becomes easily bored or frustrated and begins to look for other opportunities within months.
Focus on Open Communication
When employees and managers can communicate, a sense of community and shared purpose is formed. Establishing an environment where communication can flourish is not difficult. Hold regular meetings (or townhalls) where employees can offer ideas and ask questions. Establish an open-door policy that encourages employees to speak frankly with their managers without fear of repercussion. Have managers hold weekly one-on-ones to make sure that everyone is on the same page and works through all issues.
Offer Training
Employee training and education is critical. The workplace is changing at hyperspeed, and employees need a way to stay on top of all new technologies, methodologies and procedures. When you take your employees’ education seriously, they see that you are investing in them and that helps them feel valued and important to your company.
Promote from Within
Companies should focus on promoting from within whenever possible. If there are no opportunities for employees to advance their career within your company, they will look to advance their career outside your company. It is as simple as that.
Provide Guidance
Your employees need to fully understand their job duties and how they are performing those job duties. Make sure that you have a full job description / job plan in place, and provide regular feedback on the employee’s performance (those one-on-one weekly meetings you read about earlier should go a long way in help). If an employee truly understands his role in your company, he will be less likely to begin searching for something else.
Improving retention rates doesn’t have to be difficult. It means focusing on making the right hire and being in touch with your employees and their needs.
