3 Ways To Retain Great Employees
Every business should understand how important it is to retain great employees, as they are crucial to overall success and growth. They’ve already been trained, keep customers satisfied and have likely formed positive relationships with their co-workers and leaders. While the real cost of employee turnover has been widely debated among many industries, some studies show it can cost as much as 20 percent of the annual salary for mid-range positions and 213 percent of the annual salary for highly educated executive positions. For a small to mid-sized business, calculating exactly how much money employee turnover is costing you can be extremely difficult if you don’t have systems and policies in place to track intangible costs. For example, the cost of job screening, interviewing, training and lost productivity time for actual work looks different for every company. It’s important that every business works to retain great employees and here are three ways to do that:
1. Offer Opportunities for Growth
Most employees have some sort of long-term professional goal—whether it’s to become CEO or to receive a promotion every year or two. If your company doesn’t offer any room for growth, you can bet your great employees will look elsewhere when they’re ready to achieve their next goal. Victor Lipman, executive coach and Forbes contributor advises, “The potential for growth is a huge motivational difference maker. Even when major financial rewards aren’t forthcoming, other kinds of growth opportunities can still motivate.” Never overestimate the motivational power of progress, such as allowing your employees to broaden their skill set and knowledge of the industry. In addition, hire internal candidates whenever you can, as it’ll keep your employees motivated to work toward bettering your company.
2. Give Your Employees Freedom When Possible
Research shows that over 20 million Americans choose part-time work—rather than full-time—because it gives them more freedom. A healthy work-life balance has become increasingly more important to employees, especially the millennial workforce. No one wants to work 40+ hour workweeks without any vacation time and people are actually turning down companies that have this mindset. Employees who have the option of working when they want and sometimes where they want are known to be less stressed and more productive. Consider restructuring your office hours or allowing some flexibility in scheduling. In addition, reevaluate your vacation policy to ensure that every employee feels encouraged and supported to take a break.
3. Emphasize Communication
Communication in the workplace is great way to improve morale and generate success for your company. When employees feel they can communicate freely with their leaders and each other, they’re more likely to feel valued, satisfied and motivated at work. Finding a boss who eagerly listens to questions or concerns is harder than you think, so make your company and leadership style stand out with effective communication. Try holding weekly team meetings and encourage every employee to share their ideas and feedback on big projects. You’ll not only help the team’s morale, you’ll help your business by fixing any issues that might arise. Open communication is a win-win because it keeps you in the know and others feeling connected and accountable.