Improving employee retention can save you money
Did you know that high employee turnover can be costly for your small business?
The cost of turnover can be attributed to several things, including the loss of productivity when a position is vacant, the cost to hire and train a new worker, and the knowledge gap you’ll face until your new employee is up to speed.
Fortunately, there are steps you and your company can take to help keep quality employees. Check out these six tips for improving employee retention:
- Salary and benefits: Offering a competitive salary and basic benefits like health insurance, life insurance, and a retirement savings plan will help you attract and retain employees. But remember there are many other things you can do that may fit within your budget, like offering flex time, telecommuting, summer hours, casual Fridays and paid volunteer days. Get creative — it can be an effective way to achieve employee satisfaction.
- Clearly defined job description and goals: If your employees don’t fully understand their role or know what mark they are aiming for, it can be difficult for them to do a good job and it can leave them discouraged. First, write clear job descriptions. To get started, check out these tips from sba.gov. And remember to set clear goals you can then use to have a meaningful performance evaluation. Check out this link from MIT Human Resources that provides tips and tools for setting goals and development plans, including an overview of SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).
- Training and continued education: Whether it’s providing in-house training, sending your employees to a class or workshop to learn new job-related skills, or providing tuition reimbursement, helping employees learn something new is a benefit to everyone. Their increased skill set adds to your bottom line and shows them you value their contributions and believe in their talents. Check out this article from sba.gov for 8 Tips for Training your Small Business Employees on a Budget.
- Advancement: When employees see they have an opportunity to advance their careers, they’re more likely to stay. Showing that hard work pays off with a promotion can motivate your employees to do their best work. According to a study from The Wall Street Journal, promoting from within can also save you some money; the study found businesses pay external hires 18 to 20 percent more, but those hires get lower marks on performance reviews.
- Recognition: A simple thank you can go a very long way. According to a survey by Office Team®, more than 50 percent of workers would be very likely or somewhat likely to leave their current position if they didn’t feel appreciated by their manager. From a verbal thank you to an employee of the month program, praise your high performers. Check out the 30 Creative Ideas for Boosting Morale and Retention tool from Office Team® for more information and tips.
- Two-way dialogue: Consistently keeping employees in the loop will help them feel a stronger connection to your company, as well as foster a sense of commitment to and pride in the work you do. To ensure two-way communication, consider scheduling regular one-on-one meetings with your team to find out how satisfied they are, what they feel they can improve upon and what might encourage them to stay with your company. Check out these 5 tips for communicating with your employees from ragan.com.