Employee turnover gets expensive. Did you know that it costs, on average, twice a person’s salary to seek out and hire a replacement? This financial blow can often be avoided if the company and the employees can create a harmonious environment and appreciate each other for what they offer.
A Few Good Retention Tips
Keeping valuable employees doesn’t require extraneous effort. Sometimes, it’s as simple as thanking them for a job well done and getting to know them a little. No matter what type of business you have or what size it is, you can benefit from the tips below:
-Show appreciation. Employees that feel appreciated are far less likely to even consider looking for another position. From a simple “thank you” to special accomplishments, service anniversaries and other celebrations, you have to let your people know that you value what they bring to the organization.
-Communicate. Many employees cite poor communication from management as a reason for leaving a job. If you want to keep your best people around, you have to keep them in the loop. Get their input about the organization and make appropriate changes where you can. Let them be a voice in the company and make sure that they can hear yours.
-Make sure the culture is right. You have to set up a positive environment that fosters a culture of longevity and creates a sense of “family” within the organization. If people don’t like the culture of an organization, they aren’t going to stay. Figure out where your company culture currently sits, then change it as needed.
-Build relationships with your employees. Getting to know people and building a personal relationship with your staff is going to make all the difference. A general manager who knows each employee by first name and their family is going to have better retention success than the CEO who doesn’t even know how many employees he has in the first place. If you want your people to stay, you have to give them a reason. Part of building this relationship is showing them that they are valuable to you. It makes a difference.
When Good Employees Leave
Sometimes, no matter what you do, people leave. Fortunately, you do have one last way to learn more about how your organization can improve retention and keep employees from seeking out other opportunities. Make sure that all employees are asked to complete an exit interview. This is where you can gather more information about their experience with your company, including why they left and what might have made them stay. Employee exit interview questions should be open-ended and not leading, allowing you to get honest answers from people so that you can improve your business.
Investopedia reports that training a single new employee to the base level takes approximately 6.2 months. This means that you aren’t only spending money on finding a replacement, but that you will need half of a year to get someone back to the basic starting level when you replace an employee. By taking the time to create a strong culture that focuses on employee satisfaction and retention, you can not only create a better organization, but you can save your company a lot of lost time and money on employee hiring and training.