It’s a manager’s nightmare: One of your best employees resigns out of the blue. Not only will you need to find a replacement for a talented team member, but you also have to consider the impact the departure will have on the rest of your staff. Whenever someone walks out the door people notice. A few might even start wondering if they should start looking for a new job, too. Employee turnover is expensive, a drain on both the company’s staff and financial resources. Losing key employees can limit productivity and damage morale.
Employee Retention Strategies
Employee retention is often one of the most overlooked facets of running a successful company when it really is one of the most important. Improving employee retention and employee job satisfaction should be high on every organization’s list of priorities. Retaining top talent is essential for maintaining institutional knowledge, high morale, satisfied customers, and even sales growth. Here are 6 employee retention strategies to decrease turnover and keep the best employees.
Salary And Benefits
In a competitive labor market, it’s imperative for companies to offer attractive compensation packages. That includes salaries, of course, but also bonuses, paid time off, health benefits, and retirement plans. Every company should consider what would truly serve the needs of their employees. Perhaps that includes flexible scheduling, stock options, childcare, gym memberships, or sabbaticals. Involve your employees and get their feedback to learn more about the benefits that would truly enhance their lives and wellbeing. Make sure that every employee has a full understanding of all the benefits they receive from your organization. At the end of the day, benefits that are actually beneficial matter.
Training and Development
In any position and across any industry, professionals want the possibility for advancement. Smart managers invest in their employees by providing them with opportunities to learn new skills or knowledge. This investment signals to your team that you are interested in not only their present position but their future career growth. For many employees, job satisfaction hinges on having opportunities for career development. As a manager, ask each of your direct reports about their short- and long-term goals to determine how you can help achieve them. Professional development could look like paying for employees to attend conferences or workshops, offering tuition reimbursement, creating an in-house mentoring program, along with many other options.
Communication and Feedback
Maintaining open lines of communication is essential for employee retention. Morale improves significantly when team members feel free to speak their minds. Your direct reports should feel that they can come to you with ideas, questions, and concerns. They also expect you to be honest and open with them about any improvements they need to address in their own performance.
Employees need to have a crystal-clear understanding of their job duties and company policies. Don’t let issues build up for the annual review. When employees don’t feel like they have a clear grasp of their job duties, it can be frustrating and damaging to an employee’s morale. Connect with each staff member on a regular basis. Encourage open, transparent, and respectful communication in every member of your team.
Recognition and Rewards Systems
Every person wants to feel appreciated for what they do. Employees contribute a high percentage of their daily lives to enhancing a company’s bottom line, so it’s important to make it a priority to help them feel valued. When employees go the extra mile, it’s essential that management takes note. You can institute recognition programs even on a small team with a small budget. Make it a habit to thank employees whether it’s with a sincere email, a gift card, or an extra day off. Of course, depending on what the employee is being recognized for, you can also provide greater rewards in the form of bonuses, raises, and promotions.
Employees want a job that pays the bills, but they also want a job where they feel like they are doing meaningful work. To improve employee retention, it’s important to provide team members with varied tasks, stimulating assignments, and opportunities to make a real difference. Outside of work-related tasks, consider having employees participate in philanthropic programs. These opportunities for community engagement can facilitate bonding between coworkers and provide a unification around a shared vision for the company. They also provide all employees with a sense of meaning.
Understand Why Employees Choose to Stay
Many businesses conduct exit interviews, but that only tells them why an employee leaves. Equally important to businesses is for them to understand why employees stay. Talk to employees to identify the policies that are already contributing to employee retention and discover where there is room for improvement. Allow this feedback to shape your internal policies.
If you treat your employees with integrity, then you are likely well on your way to retaining satisfied team members. Just remember to continue to assess your employee retention strategies at least once a year. It’s important to stay current on market salary rates and benefits as well as best practices in developing workplace culture. You can count on Safeguard to provide you with ideas, advice, and solutions to help you manage your business. Let us show you how to make managing and marketing your business easier and more effective.