Is your company experiencing high employee turnover? Here are a few tips to increase employee retention.
Simply put, employee turnover is what happens when you lose some staff and hire their replacements. As many as 50 percent of all employees leave a job within two years and 25 percent leave within the first six months. This fact is especially problematic for small businesses where there isn’t a large workforce to mitigate some of the losses. Companies tend to take a deep interest in turnover rates because replacing workers is so costly.
What causes turnover
Both employees and the company they work for can be at fault for turnover. Organizations might not understand the true needs of their employees, therefore turning them away from the company. Employees might also jump ship if they can see an organization is not doing well. If the company doesn’t have enough work to go around, employees know someone will get laid off. A company might not foster an employee’s need to learn and grow and provide appropriate training or the opportunity to move up within the company. Employees might leave because they desire a higher salary or better benefits. An employee might also leave a company if he or she is not offered enough recognition or feels as though management does not follow its own rules.
When you think of human resources, you usually think of the department that handles hiring, termination, benefits, payroll, recordkeeping and employment laws. Personnel also handle employee retention, conflict resolution, wellness, training and compensation. If you don’t have a strong human resources department, it’s important to create one. Consider as well using online software and consulting services to ensure your time, attendance and personnel tracking are properly managed for your company. Once you have these services running smoothly, your human resources department can better focus on employee satisfaction and retention. Consider the following should you have concerns about turnover at your company.
Training and mentoring:
If you want your employees to feel valued, offer them plenty of opportunities for training. Training helps employees hone their skills and learn about current trends and best practices. Employees feel valued, which works to the company’s advantage as well. A newly trained employee will put his or her newfound knowledge to work, thereby boosting your bottom line. Mentoring offers an opportunity for employees to learn from management. Workers, especially those new to the world of business, gain invaluable experience and information while management gets a fresh perspective on what is working for the employees down in the trenches. Mentoring also fosters a relationship between management and those up-and-comers, which provides a way to informally prepare management successors.
Every company talks about their great culture and the values they practice. The trick is to not just talk the talk, but walk the walk. Actually follow through with your mission and values. Make sure management believes in the mission and lives it daily. Establish trust with your employees. If you show confidence in their abilities, they’re more likely to be happy and stay with the company.
Be creative in how you reward your employees. Sometimes a company-wide pizza party goes a long way. Try to make your employees’ rewards meaningful to them. Offer bonuses, paid time off, tuition reimbursement or wellness programs. Show appreciation for your employees’ hard work and they’ll be inspired to go above and beyond the call of duty. Here are 6 Tips for Employers to Keep Happy and Motivated Employees.
Providing benefits and incentives to your employees can be costly, but nothing is more expensive than having to repeatedly hire and train new staff members. Combat turnover with a solid company culture, reliable and trustworthy human resources personnel and open and honest communication from management. Deliver for your employees and they will be far more likely to stick around and help the company succeed.