Every organization experiences employee turnover. However, when employee turnover starts to rise, it becomes a growing concern for business owners and managers.
For one, it costs time and money to find a suitable replacement for the worker that just left. Additionally, high employee turnover isn’t good for business.
Let’s face it, would you trust a company that hires and fires people way too often?
If there’s a high turnover in your company, you should put some measures in place to lower it. And even if the turnover rates are steady, you still need to ensure they stay that way.
Here are inexpensive ways to ensure your employees stick around:
1. Hire the Right People
To keep employees, you should hire the right employees. Chances are you hire people whose skills match the open position, and that’s a good thing.
But do you place equal importance to hire people who are cultural and behavioral fits for the role?
A good place to start is by asking candidates behavioral interview questions to determine their reaction in particular situations.
In additin, during interviews, make an effort to show the new hires around the business and brief them about your organization’s culture. Those who don’t fit in will probably start eliminating themselves.
If some employees don’t find your work environment favorable, that’s good to know from the outset. They won’t fit into your culture, won’t get along with other employees, and will start feeling lonely.
An insanely talented employee who can’t match your firm’s culture and behavior won’t stick around for long. Chances are they’ll take their skills to a different company where they can fit it.
2. Offer Career Paths and Opportunities for Development
Sometimes employees leave your organization, not because there’s anything wrong with the compensation or work culture, but because they are looking for career growth, which you can’t offer.
Most employees want to improve their knowledge and skills and make a career progression. So, showing your employees a promising career path gives them a sense of purpose and direction. As an employer, you’ve got the obligation to show your staff a clear career path.
Let them know where their current position can take them. It could be acquiring knowledge and skills that enable them to take on more duties in their current role. Or, maybe it’s a promotion to a higher rank. Whatever the path, let your workers know how they can grow.
Start by providing your employees with learning opportunities so they can grow and thrive. The results of the training will benefit your business.
Don’t think of investing in employee career development as lowering the training costs for the next company that might hire them. On the contrary, picture it as investing in human capital.
When top performers don’t find room to move forward, they typically find another path. Growth opportunities can enhance or hinder retention. If a worker expresses genuine interest in advancing their career path, find a way to help them achieve this goal internally.
3. Offer Competitive Compensation and Benefits
After all, you’re taking up your staff’s effort and time. So, it’s only fair to offer them competitive pay and other perks.
Employees need to pay standard expenses, such as food, housing, and utilities. Most of them want enough pay to take care of extras as well. Thus, if you fail to compensate your staff properly, they’ll look for an employer who does.
To determine the compensation for your team, you may want to find out how other companies do it. Start by researching how much salary employees with similar jobs in your location earn.
Other than paychecks, you should reward your employees with good benefits, too. Examples of benefits to help you attract and retain talent are:
- Unemployment tax
- Workers’ compensation
- Paid leave
- Health insurance
- Retirement savings plan
- Office parties
- Midday surfing
- Onsite health services
- Student loan pay downs
4. Offer Flexible Work Schedules
In the recent past, the number of remote businesses has shot up, and most of them are thriving. Why? Well, it’s because more people would like to work for such companies.
Generally, remote businesses offer their employees something exceptional – flexibility.
Businesses whose employees have more flexibility in terms of time and work tend to have low turnover rates. If possible, allow your team to have flexible working hours. You can achieve this in the following ways, even after the COVID pandemic is over and things return to normal:
- Allow each employee one day a week to work remotely (from home).
- Allow your staff to work a specific number of hours every week, but let them choose when to work those hours.
- Encourage employees to complete earlier on Fridays to boost their morale and give them something to look forward to.
- Use ROWE (results-only work environments), which usually pay workers for their results instead of the hours worked. Such programs motivate employees to work faster and focus more on outcomes and output.
When you allow employees to work from home, it can be challenging to establish the number of hours worked. However, there are simple tools like a time clock calculator that tracks the number of billable hours so you can ensure fair pay for regular work hours as well as overtime.
5. Pay Attention to Employee Feedback, Needs, and Challenges
As people continue to work in your company, challenges may arise that require an immediate address. Some employees might require more resources to deliver accordingly.
Some might have complaints related to mistreatment by their colleagues. New hires might be experiencing challenges to get along with their duties or even their new supervisors.
These are just examples of issues that do arise in organizations, and if not addressed on time, they can trigger the exit of some of your best talent. That’s why it’s crucial that you provide an avenue for employees to share feedback, challenges, and needs.
Here are some tips to encourage employee feedback:
- Use surveys to ask everyone to provide suggestions on how to improve the workplace.
- Practice active listening when your employees are talking.
- Pay attention to any non-verbal cues, such as downcast eyes, tight faces, averted eyes, and more. If you identify something abnormal, dig a little deeper.
- Find out what your staff thinks of you as their manager.
- Own your mistakes – apologize when you’re wrong. It’ll encourage more open communication with your team.
All businesses face employee turnover, but you can stand out from the rest by being that firm that every employee dreams of working for.
Improve the working environment for your team in the ways mentioned above, and you should start seeing reduced turnover rates.
About the Author
Ashley Wilson is a content creator, writing about business and tech. She has been known to reference movies in casual conversation and enjoys baking homemade treats for her husband and their two felines, Lady and Gaga. You can get in touch with Ashley via Twitter.