Unemployment is at historic levels. At 3.8 percent unemployment, finding and retaining workers is a topic of discussion for every business owner.
According to a Work Institute Report, one in four workers, will leave their jobs this year to go work for another company and that 77 percent of that turnover could have been avoided.
Organizations need to manage employee turnover and focus on retaining employees so they don’t find themselves short of the help they need to get the job done.
So as an example, a person making $30,000 will cost an organization $10,000 to replace.
In addition to the cost associated with recruiting new employees, there is also the issue of work disruption, learning curves for new employees, team adjustments as new members join the group, and that valuable tacit knowledge that walks out the door.
This means retaining current employees is simply a smart business practice.
6 Tips To Retain Employees
1. Review Compensation Packages
At the end of the day, it always comes back to pay. When unemployment is low, employees know they have choices. They also have access to lots of pay data online so they know what their job is worth.
Take the time to create a compensation strategy that focuses not only on pay, but also on other benefits that can help retain a great employee.
This involves doing research to make sure your pay grades are competitive.
Also, benchmark health care, retirement and paid time off practices of other like organizations to ensure your business can compete with the competition.
2. Train Your Managers
Employees leave jobs, more often because of their direct supervisor than any other factor.
People who are put in charge of employees need to know how to do their job.
It is a sad fact but all too often businesses promote a great employee to a management role without providing them with the necessary training to do the job.
An end result is a person who does not know how to respond to the myriad of issues that a manager needs to deal with.
Be proactive and help employees when they transition to supervisor by training them and providing them with the necessary tools as they prepare for the very real issues that come with managing others.
3. Promote Work-Life Balance
Personal well being is imperative for happy, productive employees. Unfortunately, our personal lives can’t be checked at the door.
Life has gotten crazy for all of us. It seems like the wheels spin faster and faster.
Take that speed and throw in a couple of kids, an aging parent, a single parent and you have an employee who is on overload.
Support employees by getting creative with scheduling flexibility, remote work and condensed workweeks.
Model a balanced work-life and help employees juggle their personal responsibilities by providing them with the needed compassion and support for the very real-life issues they deal with.
4. Provide a Career Path
An astounding 21 percent of employees who leave a job do so because they didn’t feel like there was room to grow in their position.
Use your performance management system to identify professional strengths and developmental opportunities.
Utilize internal or external training to enhance skills. Ask employees to do a self-appraisal during their performance review process to identify their professional aspirations.
Then create a personalized plan to help employees achieve those career goals.
5. Talk To Employees
There seems to be a tendency for organizations to slow communication to employees when there seems to be nothing to say.
However, that is exactly when communication needs to increase. Employees want to know the state of the organization and how it is performing.
Take time to have open forum meetings and allow employees to ask questions and voice concerns. Give employees a confidential way to express their feelings by providing employee comment cards or an employee satisfaction survey.
I’m a firm believer that you can’t fix a problem if you don’t know it exists and you can’t know about it unless you ask. Find out what the issues are and put a plan in place to get them resolved.
6. Show Appreciation
Most employees go to work with the intention of doing a good job. Recognize these contributions and show your appreciation for all that employees do.
Get out, talk to employees, and thank them for doing their job. Show them appreciation even if its simply a verbal thank you, a pat on the back, or a public acknowledgment of a job well done.
Managing employees is very similar to parenting in that the kids need to know they are valued and loved. Don’t neglect this very important aspect of employee retention.
Our economy is booming and most anyone who wants a job is working. Organizations that are able to find and keep productive employees have a strategic advantage.
Pay attention to your employees, address their needs, and provide them with fair compensation so that your organization will be able to retain the employees you will need to achieve corporate objectives.