Losing a good employee is costly.
Many companies struggle to know the exact cost of turnover, but it can hurt not only the bottom line, but the growth of the company. In terms of productivity, your company suffers lost institutional knowledge, damaged client relationships and stalled long-term planning. In terms of bottom line, you now have to invest in recruiting, hiring and training a new employee. In terms of morale, remaining staff face job insecurity and increased the workload.
How to Improve Employee Retention
Employee retention is one of the most rewarding places to invest time and money both for ROI and fostering a positive workplace environment.
Follow these tips from the GO2 Employee Engagement specialists to ensure you keep your best employees and avoid the domino effect of high turnover.
1. Empower their success
Make sure your employees are set up for success with the tools, training and support they need to get the job done right. Are your employees unsure of your company goals and strategies? Develop an internal communication plan so everyone can work toward shared goals.
Are employees expected to use techniques or knowledge they have not been trained on? Consult with an expert to develop a training plan that includes active learning activities. Are employees spending time on tasks that are tangential to their job? Look into automating processes so they can focus on what they do best.
2. Encourage career growth
Talented, engaged employees are always looking to find new ways to contribute outside their current role and skillset. Take advantage of this appetite for knowledge to expand your company’s capabilities and win the loyalty of your top employees. This could include challenging employees with a task outside their comfort zone or providing mentorship within the company. This also includes sponsoring their continued education with opportunities like university classes and seminars.
3. Recognize good work
Good employees want to feel like they are making an important contribution to the success of the company. Their job satisfaction, engagement and retention depends on it. Give in-person thanks for a job well done on a regular basis. Publicly recognize achievements at meetings or events and allow co-workers to be celebrated. Of course, monetary compensation for continued excellence — like raises and bonuses — will be a crucial part of your retention efforts.
A good rule of thumb when offering any kind of recognition or reward is to be as specific as possible. Whether the employee won over a new client or saved the day when things went sideways, they should be given as much information as possible about the tangible benefits of their hard work.
4. Create an open an honest culture
Of all the employee retention tips, this one might be the most difficult to achieve. There are many emotional and personal factors involved in whether an employee is ready to both share and receive honest feedback. The first step on the journey to an open and honest company culture is to understand that it goes both ways.
As a leader, you need to be prepared to effectively share encouragement and criticism. You also need to be ready to receive them. An open door policy, surveys and personally soliciting opinions can all go a long way toward making employees feel heard and respected.
5. Encourage relationships
How employees feel about their fellow co-workers is a very strong indicator of how they feel about their job. It is important to give employees the opportunity to build relationships with other members of their team and with people outside their department.
These “team-building” efforts should include opportunities to work together on projects as well as non-working events that allow employees to get to know each other as people. Encouraging strong relationships between co-workers improves communication, employee engagement and company loyalty.
Employee Retention Supports Business Growth
With these five tips, you can help ensure your best workers stick around to do their best work. Do you need help on developing a training module, internal communication plan or recognition program? Contact the Employee Engagement specialists at GO2 Partners for insight on the employee retention strategies that get results.