7 Ways to Improve Employee Retention

Turnover is a common problem in workplaces. Why are employees leaving? There could be several reasons why employees leave, but here are ways for you as an employer to increase retention and make your company a place to stay.

Right Employees for the Right Culture

Employee happiness starts with hiring the right employees for the right culture. Your culture attracts the type of employees it matches. So, if you want employees who are “by-the-book,” you must first create a work culture that emulates that.

Offer Training & Guidance

Nothing makes employees more frustrated with their jobs than when they have no idea what they are doing or feel they are stagnant in their career. Consider having a job plan and providing regular feedback for the employee’s performance. You should also provide ways for your employees to improve their skills and advance their education. Ways to Develop Employees to Reach their Potential

Pay Well

It may be difficult to pay competitive salaries when your budgets are tight. However, as difficult as it may be, calculate the cost to replace those employees. The costs associated with replacing employees can be as much as 50% of the employee’s annual salary. Oftentimes, a 10-20% increase in salary can help keep the employee at your company.

Be Flexible

Flexible working conditions have become more than a perk, but a necessity to retain employees. Think about it this way: if you expect your employees to pick up a call from a client after usual business hours, then you should understand when that employee needs to come in late or take off early.

Offer Benefits

Usual benefits, such as healthcare options, can be difficult to compete in comparison to larger companies. However, offering additional benefits such as opportunities to work from home, performance bonuses, profit sharing, and more flexible vacation offerings can benefit you as the employer.

Avoid Micromanaging

Dealing with a micromanager is annoying and significantly affects employee performance. It’s important that you recognize how your actions can affect your employees and how it not only forces employees to leave, but it also affects the morale of your company. 10 Habits of a Micromanager & How to Stop

Conduct Stay Interviews & Check-In Regularly

Checking in occasionally to see how your employees are doing overall is great! It helps you keep a pulse on your business. Asking the right questions in these check-ins is also very important. Instead of waiting until the employee leaves to ask “what could have been better,” conduct a stay interview to ask your employees how they would improve their relationship with their manager, the working conditions, and their overall job.

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