According to published research, the turnover of one employee can cost a company as much as $15,000. For organizations in the information industry, this figure can rise to almost $20,000.
Coupled with this is the fact that according to recent research from Gallup, half of employees are looking for a new job. Other statistics reveal that 69% of workers say that looking for better employment is a routine part of their day.
So what’s the bottom line? A company that retains employees can avoid potentially large hidden costs.
In short, you need to figure out how to keep a handle on employee turnover rates so they don’t start to impact your bottom line.
Fortunately, you are in the perfect place to do just this. Read on to find out 8 powerful methods for retaining employees.
1. Keep Your Employees’ Salaries up to Market Rates
One of the most effective ways to keep employees is to pay them well. You do not need to overpay them. However, to keep your staff around, they need to receive salaries that are in line with market rates.
What tends to happen in businesses is that after a new employee has worked for a year or two, they are still viewed as the person that applied for the job. In reality, however, if the same staff member were to start job hunting, they might be able to secure a better salary than the 5% increase you might be offering them. They now have additional experience under their belt and have grown professionally.
Although it might seem like big raises are not going to be cost-effective, don’t forget about those employee turnover costs. Another example of this is that the turnover of one employee in the dental industry can result in over $24,000 in costs to a business. For more information on these figures, read on here.
2. Offer Revenue Sharing
Another remunerative motivation that you can offer is revenue sharing. Revenue sharing is an ideal way to not only provide employees with a reason to help the company succeed but also to stick around to enjoy its success.
At the same time, revenue sharing can offer financial benefits for the company. By tieing a part of employees’ salaries to revenue, this will allow for the financial flexibility to weather less than ideal market conditions.
3. Give Them Extra Responsibility and Room for Growth
A great strategy for retaining employees (this one is free) is to provide them with extra responsibility. Extra responsibility not only means that you enjoy more value from your employees but it also assists to keep them engaged with their job.
According to further research from Gallup, only 13% of employees are engaged at work worldwide. Engagement is key to retention, as bored and apathetic employees are not very likely to have high levels of job satisfaction.
Extra responsibility keeps employees engaged, and it also provides them with increased room for growth. The more responsibility they shoulder, the more skilled they will become, which can lead to a higher paycheck, a sense of pride, and increased job satisfaction.
4. Help Your Employees Reach Their Long Term Goals
Most people have long term professional growth goals. Most employees have to pursue these under the radar from their superiors. The result of this is usually that the employees have to leave to take the next step towards these goals.
If however, you can work with employees to further their goals from within the company, they will be more likely to stay, as their goals will line up with the opportunities you provide to them.
According to survey results, 80% of millennials (a massive segment of the workforce) view a focus on personal growth as the number one most important factor in a company’s culture.
5. Provide Flexibility
According to research, flexible working hours can not only increase employees’ levels of happiness, but they can also boost productivity levels within a company.
This results in a win-win, as employees will be better satisfied with their working arrangements, and you will also benefit from the uptick in productivity that comes from them being able to arrange their schedules to operate at peak performance.
6. Acknowledge Their Accomplishments
A thank you goes a long way, and a well done even further. Although things like salaries and benefits are substantial motivating factors for employees, appreciation within their jobs is also highly motivating.
We probably have all experienced this firsthand in our own lives, but sometimes it can be easy to forget to praise someone over a job well done. Especially if they are consistently performing well and this becomes taken for granted.
7. Hire Smart
To make sure that everybody you hire is going to be a great fit for your organization, it is a good idea to invest time and resources into the hiring process. After all, you are planning for this person to stay a long time!
By making sure that you can meet the goals and needs of the person you are hiring, and that they can meet yours, you will be setting the stage for a longterm hire.
8. Foster a Fantastic Company Culture
One of the most beneficial methods for retaining employees is to create a great company culture. This can potentially lower employee turnover rates, and it will also create a positive and productive environment that unites members with its communal spirit.
Positive company culture is a highly valuable thing to achieve. Not only can it increase employee retention rates but it also has the potential to increase levels of innovation, collaboration, and productivity.
Become a Business That Retains Employees for Years to Come
With job changes rates having skyrocketed from previous generations, a business can count themselves lucky if they can achieve a high employee retention rate. Not everybody retains their employees these days!
However, with these tips, holding on to happy and productive employees is totally achievable.
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