It can cost up to 33% of an employee’s salary to fill a vacant position.
Employers who wish to avoid both the expense and the hassle of trying to replace valued employees understand that an “ounce of prevention is worth a pound of cure”.
You may have an outstanding “employee package” with a competitive salary, solid benefit plan and generous vacation program, but those mainly work to attract good employees.
In most cases, those aren’t enough to keep good employees long-term. What’s the secret to retaining key employees in your company?
Acknowledge Your Employees Value Employees want to be recognized for their unique contributions to the organization. Show your employees that they are an asset to the company. Greet them by name. Recognize when they do a good job. (Be specific. “Nice work on the Harris project” is more powerful than “Good job”.) Thank them for working hard every day. Ask for their ideas and input into changes or improvements in the company. Help them use goal-setting to plan their work and allow them to make choices on how to accomplish their tasks whenever possible. By showing employees you value the work they do, you are building trust and loyalty – two of the biggest reasons employees give for staying at their job.
Communicate Your Company Values Educate employees on the mission of the company, and how their role assists in reaching the business’ goals. Assist employees in setting goals to reach their own targets. Provide employees with a clear job description to ensure that they understand their duties and communicate any changes or updates that may be needed. Do not hesitate to repeat, repeat, repeat your company values – you’d be surprised how many of your employees may not be sure what the company values are. This is not their fault, it is yours as a leader. Seek to change that.
Provide Growth Opportunities In many cases valued employees will seek employment elsewhere when they feel there is nowhere for them to progress within the organization. Make sure employees know the path forward within your company. Offer professional and personal development opportunities regularly. Think outside the box – ask your employees which programs may be of special interest to them that could help them do their work better. Keep your employees informed of future plans for their growth within your business and develop a systematic plan together to help them achieve success.
Promote a Team Feeling Help employees see themselves as part of a larger group by encouraging teamwork whenever possible. A recent survey indicated that nearly half of North American employees polled listed a good relationship with their co-workers at the top of the reasons for staying at their current job. Cultivate this by establishing places where team members can eat together, seating areas where employees can congregate on breaks and naturally talk about which project their working on. If you run a remote team, you may want to bring them all together at a co-working space once a month, or gather globally remote teams on a catch-up Zoom call once a month. But, it’s got to work for your culture, take these ideas as a starting point.
Provide Financial Incentive While salary may not be the primary reason employees give for staying in their job, it is a factor in why they may leave. Regularly compare your pay structure with similar businesses to ensure that your company is competitive in pay. Offer bonuses and other financial incentives for work that is above and beyond their normal duties, or for outstanding performances.
Tired of the revolving door of employees and the financial drain it causes for your business? Invest both time and money into retaining your valued employees by implementing a strategic plan of retention.
In addition, evaluate your own role in retaining employees. Does the way you interact with employees express your appreciation for their performance? Do employees value your input and feel as though they can come to you with issues and problems they may be facing (both in and out of work)?
Half of polled employees revealed that a good relationship with their manager is a factor in staying at a job – even if they are not happy with their salary. What changes can you make to ensure that your employees have a clear picture of their importance to the company?