Even though employee turnover is an inevitable part of running a small business, the costs of recruiting and training new staff can be hefty.
The benefits of retaining your most valued workers far exceed the reduced turnover costs. Higher retention levels can lead to a more knowledgeable workforce, better employee morale and improved levels of customer satisfaction.
Here are some ways to help keep your employees around for the long haul:
Develop a hiring strategy
Staff retention begins the second you start recruiting applicants. When assessing candidates, pay attention to how long someone has stayed in previous positions and look for someone who is interested in growing with your business. Ensure your business offers employees career advancement such as greater remuneration and responsibility to attract top talent.
Foster the right culture
Attracting quality applicants begins with creating an environment and culture that attract those employees. Your business’s culture should reflect the type of employee you would like to hire and whether your work environment is casual or a little more strict. Good cultural fit can lead to higher job satisfaction and engagement which will help to drive long-term growth.
Employee recognition lets staff know their hard work is valued and acknowledged. Employees who feel appreciated are more likely to be productive, motivated and stay with your business. Find different ways to give credit for the work of high-performing staff either through meetings, emails or in person.
Ensure open communication
Conducting regular one-on-one meetings with employees provides a secure environment in which employees can voice any problems. Cultivating an ‘open-door’ policy can provide employees with assurance that they can discuss concerns at any time. Regular meetings allow for continual feedback on an employee’s performance and the chance to discuss potential opportunities.
Your business can attract quality employees by rewarding workers with benefits such as the ability to work from home, flexible working arrangements and performance bonuses. Consider offering more competitive pay as many employees often leave due to higher salaries and appealing packages. The replacement costs of hiring new staff can be greater than increasing an existing staff member’s salary by 10 to 20 per cent.