Regardless of industry or company size, high employee turnover is bad for business.
Not only does it lower employee morale and decrease productivity, it’s also costly.
Finding and training replacements is significantly more expensive than retaining your initial hires, so consider the following tactics to improve your employee retention.
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5 keys to retaining employees
Here are five (5) worth thinking about:
- Make smart hiring decisions. Before you even begin worrying about retention, you must make sure you have employees worth keeping on your team. Highly selective hiring allows you to avoid the costs associated with recruiting and training replacements down the road. In order to hire selectively, it’s important to carefully screen and vet potential candidates. Remember that you’re not only looking for the most qualified candidates; you’re also searching for candidates that fit your company’s culture.
- Offer a competitive benefits package. While salary does matter to employees, they also care about what you’re able to offer them in terms of benefits. You’re more likely to retain employees if you offer health insurance, life insurance, and a retirement savings plan. If you want to offer an ultra competitive package, consider adding perks like flex time and the ability to telecommute.
- Invest in development and training. Employees don’t like feeling stagnant. Knowing that there’s opportunity for growth boosts employee morale and productivity. Consider offering training and development that allows employees to sharpen or add to their skill set. You can offer training in a variety of formats, including: outside seminars, computerized training and mentoring programs. If you invest in your staff, they’re much more likely to be invested in your company.
- Offer a comfortable working environment. Don’t underestimate the power of aesthetics in employee retention. Employees spend the majority of their time at work, so they want their working environment to be comfortable, motivating, and safe. Offer ergonomically friendly workspaces with lots of natural light and a comfortable room temperature. You want the working atmosphere to reflect your company’s culture.
- Really listen to employees. Talk to your employees often. This doesn’t include regularly scheduled meetings or formal surveys and polls. You learn a lot from your employees by simply making small talk. Ask them what they like about working for your company and what they wish could change. Discuss benefits and perks that other companies offer that they covet. Really listen to their responses and consider if there’s anything you can implement based on their feedback.
This was originally published on the Genesis HR Solutions blog.