As a business owner, there is a lot you have to worry about. This includes creating a high quality product that keeps customers satisfied. It can include working with suppliers, vendors and other business partners. It also means managing your employees. Businesses invest a lot into employees. Companies with less than 500 employees spend $1,888 on average to train and develop a single employee.
However, sometimes all this money and effort spent on employees is flushed right down the toilet. This occurs when an employee unexpectedly quits their job. Turnover is a huge problem for almost every industry. It forces companies to spend much more on recruitment and training than they would otherwise. Thankfully, there are strategies for lowering turnover that you can implement in your company. Below are a few.
One way to lower turnover is to stop hiring people who will quit or eventually be fired from their jobs. Recruitment can itself be expensive. Recruitment costs for a single employee can total $4,000. However, being more selective with your choices doesn’t mean you have to spend more money. Conducting interviews on your own can help you to only select people that are credible, competent and won’t flake out on you. Overall, hiring is a skill that must be refined overtime. Try to get better at it.
One reason many employees leave a job is because they believe there is no path for advancement. You can’t really blame people for doing so either. Everyone wants to better their selves through a long term career. 70 percent of employees at risk of not being retained say they would quit a job to advance their career.
If you want to slash turnover, you need to supply employees with clear paths for advancement up the company ladder. You won’t be able to run all aspects of your business forever. Don’t be afraid to delegate responsibility to managers and middle managers. Developing your employees in this fashion is also important if you ever plan to expand your business in the future. Current employees could be the mangers of new locations in the future.
Another strategy for retaining your talent for the long term is to create an employee incentive program. There are many different things that can be included in such a program. It can include vacation time and paid time off. It can include a car pool program to help employees save money on commuting to work.
For employees that want to further their education for the benefit of the company, you could reimburse a portion of their tuition. You could even use a points system similar to those available from airlines or fast food companies that awards points for good work that can later be redeemed for things like gift cards. There are almost limitless options. Overall, these kinds of programs provide perks and benefits that may make employees think twice about leaving the company.
Another reason why employees eventually leave a company can be as simple as not receiving the recognition they think they deserve. You need to make sure employees receive direct feedback on their efforts. This can include criticism, but it should also include positive feedback as well.
Make sure employees receive recognition for work well done. Even taking the step of choosing an employee of the month can help employees receive the recognition they need to stick with your company. No one likes to be ignored. This includes being ignored by your employer for all the effort you put into your work every day.
Employee retention is something all employers must strive for. It is required to keep costs under control and to ensure that you retain the talent you need for your company to succeed for the long term. Make sure you’re doing what you can to lower turnover in your company.