Employee turnover is hard on any company. It hurts growth, breeds a negative morale, and is expensive to be consistently finding and training new hires. Employee retention should be a top priority in today’s competitive business world. Top talent is in high demand, if you don’t make your employees satisfied, another company will steal them away.
One of the best ways to increase employee retention is to hire the right people from the beginning. However, if you’re looking for some proven strategies to decrease turnover, improve retention and keep your current employees happy, here are just four ideas to get you started:
Create something between that first interview and the exit interview. Stay interviews are different than an annual review. They should be no more than 5-10 minutes and are designed to check in, discuss their strengths, weaknesses, concerns, what is going well, and what needs work. Ask for their feedback and give them a chance to express how they are feeling at work and (perhaps) what is going on at home. This gives you a chance, as the employer, to know what is going on in your employees’ lives so you can tackle small problems before they become major issues. Stay interviews should be conducted at least quarterly.
Oftentimes leaders fear complete transparency, but employees crave it. If everyone in the company is on the same page about growth, problem areas, future plans, goals, etc., it’s much easier to secure a strong workforce. Making everyone feel like part of the team breeds loyalty. On the other hand, secrecy and hushed conversations behind closed doors creates distrust and insecurity.
Invest in People:
Money is a huge motivator. If you don’t compensate your employees at a competitive level, they will find someone who will. This can be tricky when funds are low and budgets are tight, but it is the best return on investment if you can create a loyal staff. Experts estimate it can cost as much as 50-80 percent of an employee’s salary just to replace them. Instead, if you can deliver on a 10-20 percent raise, you just saved yourself a lot of time, money, and headache. Salary increases are often all it takes to maintain employee satisfaction, but other perks like meals, VIP tickets, company discounts, parking vouchers, etc., can also provide monetary benefits when a salary increase isn’t possible.
This is particularly important with a millennial workforce. The days of punching a time-card every day are over. Even if you can’t offer huge salaries or big benefits, you can offer flexibility. Flexibility goes a long way. The ability to work from home, set your own hours, flexible vacation time, and performance bonuses can be key. A positive culture is often when keeps employees happy, even more than a high salary. Being flexible and understanding can create a culture where employees feel that they are valued and cared for. This creates a bond that is much stronger than a paycheck.