Whether you’re a new startup or an established enterprise, the value of good labor often feels so hard to find and even harder to hold on to. The caveat of acquiring high quality talent is that there are always new opportunities opening up for talented individuals. This means that your company must find ways to keep employees engaged and happy at your company or else they can be scooped up by a recruiter at any minute.
As the economy continues to grow and unemployment rests at 4.1%, competing for highly talented individuals becomes more difficult. A study by Future Workplace and Kronos found that 87% of employers stated that “improving retention is a critical priority for their organization.”
Employee turnover is usually a good indicator of a company’s work environment. It’s also a good glimpse of how successful a company will be in just a few years. A company with a high turnover rate is almost a sure signal of a company on the brink of failure.
Looking to improve your employee turnover rate? Here’s five tips to help you keep your best employees who help your company thrive.
Analyze Your Turnover Rate
First, analyze your turnover rate to see if any opportunities exist for improvement. On average, how long do employees stay for and what feedback have they given you as their reason for leaving. Is most of your workforce leaving to retire, find a better job, or simply trying to escape a toxic company culture?
Compare these insights against what your longest lasting and most successful employees have to say. Are they satisfied at your position and what perks have you offered them that you haven’t for other employees.
There are many factors that will affect turnover. This can include room for advancement, company mission, employee morale, work schedule flexibility, benefits packages, etc. These we will discuss further.
Find People Who Fit Your Company culture
Have you ever considered that you’re just not hiring the right employees? It’s ideal to find employees with experience in your niche and who actively participate in your industry. Right from the interview process, you’ll be able to gauge how excited an employee is to work with you and whether they’ll fit in with your company culture. Ask them behavioural questions to see how they react and have them tour the building and meet team members to see how they interact with others and whether you see them being happy at your company.
Pay for Good Employees
Labor quality always trumps quantity and the skills and insights that one individual can bring to your organization can sometimes be indispensable. Pay for good talent and offer competitive pay that beats the competition.
Beyond this, you also need to offer employees competitive benefits packages. Health insurance has become such a critical job consideration for older Americans, that it’s important to offer competitive medical benefits that match or beat the competition. Find out what competitors in your region offer for benefits and salary to find a reasonable compensation package that will keep employees happy.
Provide Mentorship and Support for Employees
Interview, hire, train, and forget. This is an unstable system that so many owners and companies follow to a tee. It’s honestly no wonder that so many people change career paths so early in their life and bounce from job to job.
It’s important to support your employees after they’re hired, whether it’s through continued education, mentorship, or training. You should also consider offering employee perks, such as recreation rooms, flexible work schedules, etc. that keep employees satisfied.
Refine your onboarding and training process to implement ways for employees to get comfortable at your company quickly and start busting out production.
Offer Flexibility or Advancement
Once people get comfortable at your organization, you have to offer them more opportunities than a paycheck to advance their careers. This could either be through promotions or work flexibility.
People don’t want to feel stagnant in their career path. If you can’t offer promotions or more responsibilities, consider offering employees flexible work schedules. Allow them the opportunity to pursue the goals they want outside of work.
With these strategies in place, you can improve company morale and reduce turnover rates. All it takes is for one rotten apple to spoil the bunch so be sure to keep all of your employees consistently engaged and satisfied.