Employee retention is one of the most crucial components of running a successful business. Every employee you lose – even the “average” ones – can cost you a significant amount in lost revenue, lost time, and training. On the opposite end, retaining your workforce for multiple years comes with a number of advantages, including:
- The longer an employee stays with your company, the more they develop complex understanding of the niche, market, products, and services.
- Having experienced employees who can easily complete complex tasks means better customer service and product quality.
- There is significant savings when you retain your employees, as you don’t have to do as much recruiting, hiring, and training.
These benefits are why it’s so important to make an effort to retain each and every employee you hire. The cost of employee retention is generally far less than the cost of employee replacement, and the additional benefits – such as reducing the need for training and knowing the employee is a part of company culture – all improve your long term outlook.
If you’re looking to improve employee longevity, consider the following tips:
Train and Monitor Management
Research has shown that most employees are quitting because of management, not because of the company itself. The connection between managers and employees is critical. While other factors such as income, benefits, and recognition are important, a high level of employee disengagement usually is brought about due to failures in management.
Take the time to hire and train the best managers that you can recruit. Offer them frequent learning opportunities and support so that they can be successful in helping them employees to reach their goals, and monitor them often to make sure those working under them are thriving and satisfied. Solid and helpful managers help to retain employees who will work harder for your company.
Provide Metrics for Success
Employees have a desire to succeed in the workplace. They also want to know that their skills and abilities are being used in a way that makes an actual difference to the company. When employees know that they are doing helpful and important work, they tend to develop a sense of belonging and ownership for the business.
During performance evaluations, make sure that your managers are sitting down with employees to create S.M.A.R.T goals, which stands for:
Work with your management team to help your employees to meet and exceed these goals while delivering quality work. Remember that it is not enough to give vague feedback, or to tell people they need to improve. Your employees need to see and know that their hard work is being rewarded, not punished, and that you are aware of the successes that they’ve achieved.
Recognise Your Employees for Specific Accomplishments
Most employees do want to help the business succeed. But they also want to be recognised for that help, and know that the business appreciates them back. Make sure you’ve developed some type of plan to reward employees and recognise their achievements. One idea is to create a reward system, either formal or informal, for when an employee achieves something specific. It could be an extra hour of lunch, a gift certificate, or simple recognition during a staff meeting. As long as you create a culture where individual contributions matter and are celebrated, you’ll retain more employees.
Offer Your Employees Growth Options
Training is an important part of employee satisfaction. But training alone isn’t enough to make sure that an employee stays. Companies with a high retention rate also provide opportunities for their employees to expand and grow, both in the company and in their professional life. Offering mentorship programs, supervision for professional certificates, a specific growth plan to help them receive raises and promotions, educational opportunities, or cross-training are a great way to keep your employees engaged. Solid and loyal employees want opportunities to learn more and advance, not just to maintain the status quo.
Encourage a Healthy Work/Life Balance
As the person in charge, it’s your responsibility to make sure that all of your employees are happy in their work life. But how an employee enjoys their personal life is important as well. Make sure there are opportunities available to your staff members that allow them to maintain a good work/life balance, whether it’s added vacation time, telecommuting options, personal days, etc.
Maintain Your Employees and Grow Your Business
It is important to approach employee longevity with a well-organised and focused strategy. Not only will retaining your employees help your overall profits and company stability, it will help to create the type of work environment that attracts solid workers. Sincere changes in your organisational approach will pay off quickly and increase your employee’s morale while decreasing your turnover rates.
Competitive Employee Benefits Package
Offering a competitive compensation and benefits package is crucial to retaining your best employees. Regularly review local industry standards, and make sure your offering is staying up to date and competitive. Always keep non monetary perks in mind, like flexible work arrangements, and always provide transparency when it comes to the value of the package. If there are any unique opportunities you can provide like professional growth for your employee within your organisation, make sure they’re included. By aligning your compensation package with employee needs, your business can foster loyalty and reduce turnover. For more information on competitive benefits packages, make sure to read our blog ‘How to build a competitive employee benefits package’.