How to increase Employee Retention
When you are a small business looking to grow, having good employees who stick around for the long haul is a huge key to success. However, according to the Bureau of Labor Statistics, almost half of employees leave their jobs within five years of being hired. If you want your business to last, it's important that you learn how to retain your employees. Luckily, there are some easy steps you can take to decrease employee turnover and ensure that your current workers have every incentive they need to stay at your company.
Have a hiring process that values skills, not just qualifications.
The first step in improving employee retention is hiring the right person for the job. It’s important to hire people with the right skills, not just qualifications. Hiring is a tricky process. It's hard to know if someone will fit into your company culture and be a good fit for your team—especially since you're usually looking for something very specific. And when you're hiring for a specific role, it can be tempting to go with the most qualified candidate rather than the one who might fit in best with your team.
But if you have a hiring process that values skills over qualifications, you might end up with some really great hires. If you're looking for someone who has experience working with data entry systems, but they don't have formal training in data entry, but they have done some work with them before, then they might be able to fill that role just as well as someone who is formally trained in data entry systems.
If you're looking for someone with experience working with certain technologies or languages, then it can still be valuable if they don't have formal certifications, as long as they've worked on projects using those technologies or languages before. Of course, you'll want to make sure they have enough experience and knowledge of these things so they can do their job effectively. But if they do have enough
We also look at whether or not our candidates are passionate about what they do — whether it's their current role or ours! If someone is passionate about what they do and where they work then that can really improve employee retention rates because it shows there's alignment between their values and ours which makes everyone happier!
Show value by ensuring compensation is fair and competitive.
Ensuring employees are compensated fairly and competitively is an important way to show value. If you undervalue your employees, they'll feel like they're not being treated fairly and that you don't respect them. If you overvalue your employees, they will expect higher salaries and benefits as well as more vacation time than necessary. As a general rule of thumb, try not t o make promises about compensation if there isn't room in the budget for it; otherwise, you risk losing those valuable employees when it comes time to deliver on those promises.
One of your key responsibilities as a manager is to ensure that the people you lead are compensated fairly and competitively.
And not just for them—for you, too!
You want to make sure everyone is getting paid what they deserve, whether it's more or less than they were making previously. You also want to make sure that your team has the opportunity to earn raises and bonuses based on their performance levels, not just their tenure.
There's nothing worse than having a team member who feels undervalued or unappreciated. It can be demoralizing, and it can cause problems with productivity and engagement that will negatively impact the entire team. That's why it's so important for managers to pay attention to how they're compensating their staff members—and if need be, adjust accordingly.
Provide a strong benefits package.
Benefits are an important part of the total compensation package. Benefits can be a way to attract and retain employees, keep them healthy and save for retirement.
Employers should offer a comprehensive benefits package that includes health insurance, retirement benefits and paid time off. Employers may also want to consider adding other types of non-traditional benefits such as concierge services or on-site childcare facilities if they're available in their area.
Providing a great benefits package can also help you retain valuable employees, which has been shown to increase employee retention rates by up to 15%.
Your employees are the most important part of your business. They keep it running, and without them, you wouldn't be able to run at all. That's why providing a great benefits package is so important when you're trying to retain your workforce.
Employee retention can make or break a company, and often has more impact on your bottom line than hiring does. It's much cheaper to retain an employee who is already on board than it is to hire one from outside your organization. But how do you make sure that your employees stay with you?
By providing them with an excellent benefits package that meets their needs!
A good benefits package is one that satisfies both the employee and their family members. This means offering things like: health insurance, dental insurance, vision insurance, life insurance, disability insurance, retirement plans and supplemental benefits (like telecommuting).
Offer professional development opportunities.
Offering professional development opportunities can be a great way to keep employees engaged and happy at work. Professional development helps employees learn new skills, technologies, and processes that they might not have the opportunity to experience in the course of their daily work. For example, you could send your sales reps on training courses that introduce them to new software or teach them how to improve their sales process by selling more effectively over the phone or via email with customers. Alternatively, you could host an all-hands meeting where your developers come up with a game plan for the next quarter based on what they learned from attending conferences that pertain directly to your industry within the last year (e.g., speaking at conferences).
The benefits of this type of training are twofold. First, it continues to give your employees new skills that will help them do their jobs better and make more money for your company. Second, it makes them feel valued by giving them recognition for their hard work. This can make all the difference when it comes time for an employee review or performance review — if someone feels like they're making progress in their career path, they'll be far more likely to stay at your company until retirement age!
Professional development isn't just for salespeople though — HR managers can also benefit from professional development courses as well!
Be flexible when you can.
Flexibility is important to employees, and they'll often be willing to trade off other benefits if it means having the freedom to come and go as they please. If your company doesn't have an official policy mandating set start and end times, consider implementing one. This can make a huge difference in employee retention, particularly if you're trying to attract millennials who are looking for more flexible work environments.
However, even if you have no choice but to keep things rigidly structured (for example, if your company has clients that need certain hours or days served), allow for some flexibility within those guidelines. For example: You could allow employees who need a little extra time on their lunch break each day so long as their work gets done by the end of the day; or let employees do some work from home on Fridays so long as quality is maintained through weekly meetings; or allow people with kids drop off their child at daycare before coming into work an hour early instead of clocking in every morning (or after closing down every night). These types of arrangements may not be ideal for everyone—but if it's something that helps keep an employee happy so she's not thinking about leaving her job all day long, then that's worth exploring!
Encourage work-life balance by emphasizing the importance of health and wellness.
Tell your employees that you value health and wellness.
In order to encourage work-life balance, it's important to emphasize the importance of health and wellness. You can do this in several ways:
Encourage healthy eating habits by providing free fruit or veggies at lunchtime, offering healthy snacks like nuts and dried fruit throughout the day, and providing healthy fast-food options in the office break room.
Encourage exercise by setting up a treadmill desk or encouraging employees to take breaks during their shifts when they can go outside for some fresh air or do some stretches (if possible).
Make sure your employees know that they can take sick days without fear of reprisal. Emphasize the importance of taking time off when they need it, especially when they're sick or if they have an illness. Show them that their well-being is important to you by creating policies that encourage them to use their vacation time or sick days as needed. This can include offering unlimited vacation policies, which allow employees to take as much time off as needed without having to worry about accruing vacation days or losing pay. If a policy like this is too expensive for your company, consider instituting an unpaid sick day policy instead. This allows employees who are sick enough to go home from work without losing wages — but only if it's medically necessary for them to do so (for example, if they need treatment for an illness).
Implement a wellness program.
Implement a wellness program that encourages employees to be healthy. A wellness program can be as simple as providing a gym membership or setting up a fitness room in the office, but it can also take the form of more complex initiatives like providing health coaching services or offering incentives for participating in regular physical activity. If your company doesn't provide such perks as part of its benefits package, consider giving employees some freedom when it comes to their own health care decisions by helping them find affordable options online.
For example, if you have enough room in your budget and want to offer something more than just fruit baskets for employee birthdays or holidays, consider outsourcing the task of keeping track of how many miles everyone travels each month so that you can reward those who log more miles with monetary bonuses at year's end—or even better: give them access codes allowing them free parking!
Create an inclusive company culture.
The term "employee retention" has become a buzz word in business circles. It's important to retain your employees, but even more so to build an inclusive company culture that keeps them around for the long haul.
When it comes down to it, most people want to work at companies where they feel like they belong and can make a difference in their communities. You need employees who are passionate about what you do as well as the service or product you provide. An employer who embraces diversity and inclusion is creating an environment where all employees feel safe expressing themselves and valued for their contributions regardless of background, gender identity/expression or sexual orientation.
Make your employees feel appreciated.
If you want to retain your employees, make sure they feel appreciated. The best way to do this is by recognizing their contributions and thanking them for their hard work.
You can also give them a pat on the back and recognize their achievements, bonus or raise them in some way (promote), or even give them a reward for doing something well.
Employee retention is more than just how much money someone makes at the company, it's also about how they are treated and the benefits offered to them.
The bottom line is that employee retention is about more than just money. It's also about how they are treated and the benefits offered to them. It's all of these factors coming together in the right balance that will help your organization retain the best employees and grow its talent pool over time.
We hope this blog post has given you some great insight into how to keep your best employees around! Remember the important thing is to ensure that both employees and management understand each other's needs, and that everyone is working together for the success of their company.