Employee turnover costs your company in multiple ways. In fact, reports show that turnover costs employers a whopping $15,000 per employee, mostly for reasons that are avoidable. In addition, there are massive ramifications to the entire company when your top star leaves the team. As a business owner, attention to employee retention is key for a thriving work environment.
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If you run a small business, you are most likely faced with limited resources. So, retaining your best and brightest is vital to your business success. Therefore, efficient and effective employee retention strategies help to improve office morale and productivity. Such strategies ensure that your best workers don’t leave you for the competition.
Consider these three simple and cost-effective employee retention strategies to help you succeed.
Communicate With Your Employees
You might think communication is handled. Employees come to do their job and go home. However, healthy and transparent communication significantly improves employee retention. Great communication encourages employees to ask questions, addresses employee and company concerns, and provides you a vehicle for receiving feedback. Considering employee feedback and follow-up are key factors for effective leadership. Great leaders foster excellent employees and positively impact employee retention.
Experts explain that “an emphasis on communication equips employees to feel valued, satisfied and motivated which enhances their morale and increases their output.”
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Our favorite tool to communicate with your employees is Connecteam’s free employee communication app. In the click of a button, you are able to create a two-way communication channel. Managers can send private or group chats and updates. The platform allows you to share weekly goals, celebrate the employee of the month, send birthday wishes, release company announcements and more. Additionally, employees have a tool to communicate with you in real-time if they have issues. Apps like this make communication simple and effective.
Hire For Retention
According to Glassdoor, 35% of employers who hire new employees already anticipate that other employees will resign in that same year. If your hiring strategy includes the expectation that existing employees will soon resign, something isn’t working! Make changes toward retention rather than hiring a workforce you expect will not be with your company for long.
To begin, revamp your interview process. Ask questions that help bring out qualities that you seek to develop among your employees. Consider past performance relevant to tasks you’re hiring for. Be consistent across interviews so you can utilize lateral comparison.
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Next, ensure that the job description is clear. Many new hires reported that they would stay at a job and company longer if they knew more about their job role early on. It is essential that you do not omit details of the position. Take the time to find the right candidate, even if you are desperate to fill the vacancy. Remain transparent so the right employee joins your company and stays for the long term.
On-Boarding Is Crucial
As soon as a new hire arrives on their first day, make sure they’re set up for success! teach them about the company culture, training opportunities, mission and values, and so on. Make clear to them that their job role and responsibilities, while very important to success, are just a part of their relationship with your company. HR experts say, “Onboarding new hires at an organization should be a strategic process and last at least one year to ensure high retention.”
Employee Retention Makes The Difference
Employee retention is just one strategy for your business’ success. Still, having the right team with the right employees invested in your company’s success makes the difference. In order for them to invest and be loyal to you, invest and be loyal to them. Your business will most certainly reap the rewards.