7 Steps to increase your employee retention rate
Having high employee turnover rates will cost your business a lot of money, it will also affect your company performance, morale and image. If you want to avoid high turnover rates and improve employee retention use these tips.
- Hire selectively
To have a good retention rate of employees you need to make sure you have the right employees to start with. To do this you need to make the right hiring choices. Take into account not only their skills and experience but their personality and how well they will get on with your existing team members, company culture and your target customers.
By choosing the right person for the position and for the company it is more than likely the company and position will be right for the individual. You don’t have to do this alone, interview multiple times with other hiring managers so they can also make judgement, if you’re worried about this as well – use a recruiter.
- Make sure the package is right
If you want to keep great talent you are going to have to pay for them. Talent shortages mean the market is competitive, which could result in another company snatching your best team member by dangling a healthy salary + Benefits in front of them.
To avoid them leaving for a better package make sure you continuously review packages and salaries and offer new benefits every so often to keep the position interesting. These changes don’t need to be big – knowing that you are aware their benefits are important and you think about them is encouraging.
Remember its not all about money – perks such as flexible working, health insurance, stock, fitness membership, community, charity and performance incentives all contribute.
- Make sure you have a comfortable work environment and culture.
Environment is a big factor in any workplace, it is somewhere most of us spend 8+ hours a day, 5 days a week. Make your workplace somewhere people want to work – lighting, temperature and ventilation should all be factors you consider. Aesthetics are also important and can add to your company culture. Communicate your company visions in your office- think colour schemes, fun perks for employees (ping pong, table football) and motivational items (quotes, recognition boards).
- Let them improve themselves
A key reason people leave a company is because they don’t feel that they’re continuously improving or learning. By providing training to employees it allows them to add new skills or develop existing skills to their profiles. There are companies offering training allowances, enabling employees to choose any course they want to do in their spare time, whilst at the company (whether its job related or not). You don’t even have to spend any money – do the training sessions yourself or use mentoring programmes.
- Listen to them
You must listen to your employees; they are the most important part of your business. Being listened to will make your employees know they are integral part of the business whose voice matters, and you may well get some great suggestions out of doing it.
Find out why they have remained with the company and what it would take for them to leave, this information is always useful. Don’t be frightened to ask – at least it shows you care and are focused on them.
By conducting reviews, it gives you a chance to listen to your employees as well as allow you to let them know what your thoughts are. By setting aside time for a conversation, employees feel more valued and, depending what information you give them, feel more part of the company.
- Recognise their efforts and success
Recognition is important as it makes employees feel like they are successful in their positions. Rewarding great results is easy and doesn’t have to be expensive. A thank you note or just a thank you will suffice. Feeling recognised for great work will make people want to stay with you for the long haul.
Physical recognition is also beneficial for motivational purposes – think back to perks and bonuses.