Did you know that employee turnover is a significant problem for most businesses? Economic research suggests that for some industries it can cost up to one-fifth of an employee’s annual salary to find, train, and hire a suitable replacement. This is why focusing on retaining your best employees deserves to be considered as one of your top priorities.
It is a fact of life that over time some employees may decide, or need to, leave the company for any one of several reasons. However an unusually high turnover rate could mean that your investments in the employees while they are in the company, is in danger of being considered a waste. Very high employee turnover may be the last thing you want as a company. It adds to your costs as well could affect the company’s reputation. However, the solution to high turnover is not to stop investing in your workforce. The solution is to identify and address what maybe one or more reasons employees may be leaving at an unusually high rate.
It is not as hard as you think it is. Let’s apply this to real-life experience.
Let’s have a look at your company driver’s Job Description. They know every little detail of most of your employees’ whereabouts and most of your employees tend to communicate with the office driver when they’re travelling together. He (or she) can be considered a very emotionally important asset to your company. But how well do you handle his/her grievances? What is the value of his/her role inside the company?
This is where you need to get involved, keeping in mind that every little job makes a difference and helps you reach your goals. Attention paid to keeping him/her satisfied will make sure that he/she will think twice even if he/she gets offered a better job with better pay.
The below tips may be helpful to make your job easier.
- Recruit the best and the most suitable people for your company and to the working environment
Good HR results start at the point of attracting and selecting the right talent – this alone can lead to far better outcomes across the board. Recruiting has to be prioritized because making sure that you recruit those who can adapt to and enjoy the company’s environment will remain in the company longer than those you just recruit without doing a background and attitude test.
- Offer reasonable pay and incentives
It is said that better benefits equals reduced employee turnover because they think about living a comfortable life and getting paid accordingly, as much as focusing on opportunities, engaging and challenging work, and a pleasant working environment. These also include insurance and other benefits that you offer from the company’s side. Human nature works for you here because few employees will want to risk moving to a completely new environment even when pay is equal or higher, when they are happy where they currently are.
- Trust your employees and provide them with a meaning and an objective
You recruit and hire the best candidate out of many talented individuals. Hence they deserve your trust and you should be determined to give them space to perform while guiding them towards a purpose and a clear goal. This will indirectly allow them to develop their skills and abilities – and any person appreciates feeling they have sufficient autonomy, and trust placed in them, to do their job as they see best. Personal development is another factor they look for when deciding whether to accept a job offer from another company or to stay in your company.
- Demonstrate respect for employees
Give them space to think, be innovative, and use their ideas; never ridicule or shame them. Let them know that you value them. This way, you will make them feel that they are an integral part of the organization and not just another asset, or worse, liability, that the company can use and dispose of. Don’t forget that they are also human beings that need time for breaks and rest, proper sanitary facilities and proper working conditions that do not negatively affect their health and well-being. It will surprise you how
- Help employees maintain work-life balance
Maintaining work-life balance is vital for a healthy workforce. Some employees’ motivation could be monetary benefits such as the salary but for some others (and at some point in life, for almost everyone), the ability to strike a balance between work-life and personal life could be the most important aspect of employment. You may not feel the importance of this when you’re at the early stages of your business, as profitability would be the prime concern. However, the sooner you make sure everyone can enjoy a decent work-life balance, the better your chances at retaining your best employees.
These tips will not only help you improve retention, but also productivity and creativity at work while driving satisfaction, which are the keys to your business success!