Utilizing the right employee retention strategies can spread the cost of hiring and training over an extended period, helping you to minimize operating expenses. As time passes, your employees develop skills and acquire knowledge that improves the performance of your organization, making them increasingly valuable.
Many business owners think that preventing employees from quitting requires nothing more than pay increases and high-end benefits. While financial compensation is important, retention depends on many behaviors and attitudes that affect how employees feel.
Your small business needs impressive employee retention rates to maintain profitability and continuity, so use the following four strategies to keep your valuable employees on your side.
Communicate Your Mission and Vision
When your employees understand what exactly the company does and how they contribute to the overarching mission of your business, they will stay motivated and engaged. Employees who understand your business vision will work with a sense of purpose that will facilitate decision making and task prioritization. Workers who know how they fit in with your organization will act to support your best interests and those of your customers.
To further contribute to the bond you create with your workers, clearly communicate to them your expectations and how you will evaluate their performance. This will help them understand their responsibilities and what they need to do to enjoy a long, mutually beneficial relationship with your company.
Encourage Open and Frequent Communication
Continue your employee retention effort by continually engaging your team in open dialog. Encourage feedback from your workers by asking them to share their ideas and opinions. Make everyone feel comfortable to ask questions about anything regarding their work or the company.
An open communication strategy will help you understand the feelings of your employees, as well as the factors that affect their morale. Take a personal interest in your employees and let them see that you genuinely care about them. You don’t have to become close friends with the people who work for you but you should give them plenty of reasons to trust you.
Ensure Employee Satisfaction
As mentioned earlier, compensation alone doesn’t support employee retention. However, this doesn’t mean you don’t have to provide your team with fair wages and competitive benefits. Taking care of your employees’ financial, health and wellness needs will demonstrate that you care about them. Anything you do to help your employees manage their lives more easily will go a long way toward gaining their loyalty.
Additionally, allowing your employees to work remotely can give them more time for their personal responsibilities. Implementing a telecommuting policy will not only help your team members achieve a healthy balance between work and their personal life but also improve their productivity by 10 – 20 percent. By trusting them to work without direct supervision you will earn their loyalty and respect.
Provide Detailed Feedback
Don’t forget your responsibility to provide ongoing feedback to your employees. Inform your workforce about issues affecting your company and their work. Go out of the way to let your workers know how much you appreciate their contributions to the success of your business. Your staff needs to feel appreciated and know whether they are performing well or not. When your employees know they are being recognized, they will diligently work in support of the company’s success.
You’ll notice that most of the above four retention strategies depend on open and honest communication. They also require you to take a personal interest in your employees and their success. When you fairly compensate your workers and make them partners in your success, you’ll build a loyal team that will use the knowledge and skills developed as a result of their work in support of the company’s achievements. Together, you’ll control the costs of hiring and training workers while building a great life for everyone involved with your business.
About the Author
Lisa Michaels is a freelance writer, editor and a striving content marketing consultant from Portland. Being self-employed, she does her best to stay on top of the current trends in the business world. She spends her free time trying out new recipes or reading Scandinavian crime novels. Feel free to connect with her on Twitter @LisaBMichaels.