Whether you work for an SME or a large corporate enterprise, strong employee retention rates are highly desirable. Quite simply, it makes economic sense. The recruitment process can be costly to your business and retaining old employees is more efficient than bringing in expensive new hires.
Moreover, the negative effect that a high turnover rate has on your team morale can be devastating to productivity levels. If your employees see their friends and colleagues leaving, they may start to wonder why everyone is so keen to jump ship.
In a time of political uncertainty regarding President Trump’s trade talks and the upcoming elections, employers are dealing with an increasingly tight talent market. Therefore, employees are your most valuable business asset right now.
Ask yourself whether you can afford to lose the best members of your team. If the answer is no, read on for top tips from Resume-Library on boosting your employee retention rates.
1. Make Good Quality Hires
Before you can boost your retention rates, you need to have a strong workforce behind you. This requires you to make good hiring decisions and vet candidates thoroughly. To do so, you should have an idea of what aspects of the company culture and job role you want to emphasize. It will help you to identify the best candidates.
Other than this, there are red flags which should indicate to you that a candidate won’t stick around long-term. Perhaps they have a choppy employment history and lots of different experiences. Job-hoppers are always a gamble.
What you’re looking for is an employee who’s stuck with their previous employee through ups and downs. However, if you’re hiring a young candidate or one who’s just starting out, look for other signs of commitment, such as loyalty to a team sport or other long-running hobbies.
2. Offer Competitive Pay and Benefits
Salary is a priority for the majority of employees, and this is unlikely to ever change. While your company may offer excellent perks and a fun working environment, if your team can’t afford to pay their bills, they’re not likely to hang about.
Consider the location, seniority of the role, skills required and experience when deciding what salary you’ll offer. Furthermore, ensure that you’re matching the market rate pay for the role, otherwise you face losing employees to competitors. Savvy employees know they can often get a pay rise just by changing companies.
However, if you can’t offer a top-tier salary, can you offer competitive benefits? Health insurance, life-insurance and a retirement savings plan are all essential for retaining employees. Flexitime and remote work are additional benefits.
3. Offer Training and Development Opportunities
While many businesses seek to hire candidates who are suitably qualified and skilled, not as many are willing to invest in upskilling their employees. This indicates that you don’t value your employees’ potential and development; which won’t do anything for your retention rates.
Yet, the world of business is constantly changing, especially in technological advancements. Investing in your workforce not only benefits them, but your company as well. Higher-skilled workers will help you to stay ahead of the game.
4. Be Supportive
When every day is busy, it can be easy to forget that your employees are only human and require reassurance and advice every now and then. Make time to catch up with your staff, whether it’s through team meetings, one-on-one catch ups or email check-ins. Your employees are more likely to look elsewhere if they feel lost and unappreciated.
Being supportive includes recognizing their accomplishments. If your employee reaches their performance goals, be sure to congratulate them, no matter how you decide to give the reward. Setting and achieving goals will encourage them to stay with you in the long run.
5. Foster Transparency
Your retention rates will suffer if more senior members of staff fail to communicate with their team. Traditionally, leaders refrain from sharing information they don’t believe concerns their subordinates. However, this creates a distance between manager and team; and employees may become disengaged.
Keep employees in the loop to improve the connection between all colleagues and senior members of staff. After all, transparency encourages growth and shows that everybody can learn from their mistakes. Employees will be less likely to quit if they know that they're trusted and are up to date with company affairs; whether it’s a new hire or industry-related news.
Want to Boost Your Retention Rates?
Staff retention rates continue to trouble modern businesses. This is largely because the world of work is always changing. Whereas it was common for ‘baby boomers’ to join a company and remain with them for many years, millennials have adopted a different approach to their career.
They want to try their hand at different industries, have a purpose and feel valued. While this energy has brought a new dynamic to workplaces, it also presents a unique challenge for employers to overcome.
Therefore, if you’re focused on boosting your employee retention rates, your business must adapt. Know your company culture, stay competitive, offer support and communicate with employees about where your business is headed. Good luck!