Employee turnover can be burdensome for companies to deal with. After all, you may invest a considerable amount of time and resources into the proper training of quality employees.
More than that, it can be time-consuming and costly to replace them. Even your great employees who are a true asset to your company may quit at some point.
You may think that they would leave for higher pay or improved benefits, but this is not always the case. Some employees leave because of the work environment, the type of work they are being asked to do and more.
Why It’s Essential
You may think that paying your top employees a great salary and offering fabulous benefits would be enough to entice them to stay with your company long-term. However, one of the primary reason people quit their jobs is related to poor management. Employee turnover is a true issue that companies need to deal with, and this is because a high turnover rate can cost you time and erode away productivity. After all, it can take a substantial amount of time and effort to replace employees, and it can also be stressful and expensive to find and train them.
Remember that smaller businesses may have a greater challenge finding top talent to work for them. This is because larger corporations may have the ability to offer more benefits, an improved work environment and higher compensation. Nonetheless, it is important to keep your top employees in place if you want to achieve business goals, and a closer look will tell you about the necessary steps required to retain your best employees.
How to Increase Employee Retention
There are several steps that you can take to encourage your experienced and well-trained employees to remain with your company over the years. Compensation may not be a prime reason why employees leave, but it nonetheless can encourage them to stay. Ideally, your company will offer employees what has now come to be known as a standard compensation package. This includes a great salary, health insurance, life insurance and a retirement savings plan. An employer-matching compensation is an even better idea.
It can also be beneficial to offer customized benefits to specific employees. For example, a career-minded individual may benefit from having the company pay for specific training courses that are needed to help the individual reach the next level in his or her career. These excellent employee retention strategies can help your business to reduce turnover and retain a skilled workforce.
1. Encourage Communication and Feedback
Communication and feedback are critical in a great work environment. On a regular basis, you should review your employee’s work and provide constructive feedback as well as constructive criticism. Your employees want to know that their quality work is being noticed and appreciated. This will help them to feel valued and appreciated, which can boost morale.
They also need to know the areas that they can improve on through a regular, formal evaluation. This gives them a feeling of being challenged to do better in the environment, and this can create drive and motivation. During an employee evaluation, ask employees about changes they would like to see in the workplace. This is a great time for you to learn more about what they are unhappy with about the job so that you can take appropriate steps to improve their level of happiness.
Some things may not be resolved, but simply asking about them shows that you care about their happiness. Another way to create open communication between employees and management is to hold regular meetings with the intent of having employees ask questions and offer ideas for improvement to the corporate environment.
2. Engage Your Employees
Your employees need to be aware of how their unique contributions are important to the overall success of the company. More than that, they need to understand the company’s mission and goals. This gives them the opportunity to feel as though they are making a difference in something important and meaningful. It can boost job satisfaction significantly.
You also should provide each employee with the opportunity to grow through training and development opportunities, and you should promote individuals rather than higher externally when possible.
Another way to engage employees is to make work interesting and challenging. No employee should do the same menial tasks for years without feeling challenged. Employees want to feel as though they are growing and developing within their position.
3. Be Flexible
Many employees feel stressed and unhappy because of a poor work-life balance. All of your employees have personal commitments and responsibilities, and they may need to use work hours to address these personal matters at some point. By offering flex time or the option to telecommute as needed, you can help your employees to improve their work-life balance.
More than that, you may be able to reduce their stress level while saving the company time and money in the process. Your employees want to know that you see and respect their personal life and their need to find balance. When employees work in a flexible work environment, employee retention can increase dramatically.
4. Foster Development
Promoting career development and growth is also critical for employee retention. For each employee, offer regular on-the-job training so that they can learn new skills or obtain valuable certifications. You may also reimburse them for college courses taken in their related field or that are relevant to their job growth possibilities internally.
When your best employees feel as though the company is helping them to grow and to achieve their own personal career goals, they may be happier with the job and more likely to remain with your company for years to come. Your managerial team can also foster development in your employees – i.e. taking a mentoring role with your employees or recognizing top performers and promoting them from within.
5. Provide Great HR Leadership!
A seasoned HR professional should be able to streamline employee structure and processes. This can include the management of employee benefits, finding new and exciting perks, conducting employee reviews and identifying those who may need to be promoted from within. Being aware of current employment laws and trends, strong human resources management can incorporate programs and perks (to substantially improve the corporate environment) that the company C-suite many not even aware of.
While employee retention efforts can be time-consuming and tedious, we all know that they are nonetheless critical in order to operate a successful business. Use these ideas to keep turnover to a minimum and retain your top talent!
About the author
Jen McKenzie is a freelance writer from New York, NY. She is fascinated by all things having to do with words, business, education and cutting-edge. When Jennifer is not busy writing, she enjoys taking long walks and spending time with her two pets Brando & Marlon. You can reach Jennifer @jenmcknzie.