Regardless of business size and industry, replacing employees is very expensive. Industry studies shows that the cost for a replacement can be double as Organizations need to spend time and money in order to find the perfect replacement.
I have put together some employee retention strategies that will help your Organization to keep your best employees.
Why people leave?
You live in a very fast paced environment, and unfortunately you don’t have free time to invest in your one-on-one meeting with each employee; you don’t really know how they feel and what is their honest opinion about your management style. The truth is that you miss a lot of details, and details in retention matter a lot. Exit interviews, it’s a way to gather information, but the main point is to resignations and to keep your best talents. However, keep in mind that some employees are afraid to give their honest feedback in exit interviews and they answer questions in a more diplomatic way.
Questions to ask yourself:
- How many employees resign because they were not treated fairly?
- Employees who quit are high or low performers?
Use engagement surveys and measure your employee’s satisfaction in order to be proactive and to keep your top performers. Expect the honest opinion of your employees and be ready to take actions accordingly.
Create an effective on-boarding process
Make sure there is a plan for the newcomer for at least the first 30 days. Small things matter and If you are an HR Professional, you can really understand the meaning that a small gesture does to new employee; buy a small welcome gift with the logo of the Company, send a welcome email and present the new employee to everyone in the office. In general, think about strategies and ideas that will make the new employee feel welcomed and part of the team.
These small acts will lower your turnover as you will make them feel like home and they will bond with the rest of the employees.
Ensure managers are giving constructive feedback
I have met managers who give only negative feedback when an employee does a mistake. This act demotivates employees as they have the feeling that their direct manager cares more about their mistakes and not about their achievements. Make it clear to your management team that constructive feedback is essential. Constructive feedback it’s not about a “well done” or “thank you” it’s about your employee performance. Your employee’s performance is about your own guidance and coaching style. You don’t have to be the perfect manager; however, your subordinates are your responsibility. Below I have listed some tips:
Try to use more positive words and avoid using negative words:
- Guide your subordinates when they do something wrong
- Create effective Training and Development processes
- Meet with them frequently in one-on-one meetings
- Implement a Project Management tool in order to be able to write comments about the progress of his/her project so you will be able to monitor his strength and weaknesses
- Create a reward policy and procedure
Remember that when your employee feels valuable, the risk to quit is very low.
Communicate the Organizational vision and strategy
You hire employees to act as “position or product owners” in your Organization. From the first day of their employment the most important thing they need to know it’s the vision and the strategy of the Company. If you won’t share it with them, they won’t have any idea how to act or react in any situation. When employees know your vision and your strategy, they feel engaged, valued and they will be loyal to you.
Offer Learning & Development plans
Career growth is very important for all employees; in 2018 a study showed that 61% of job seekers mentioned career growth is the most important for them.
You don’t have to spend a lot of money to train and develop your top talents, your can create internal training sessions based on your own industry.
Employees love working in Organizations with flexible working hours. Many candidates told me that they prefer to find a job with a bit less money but to have a flexible working schedule.
Toxic work environments are not in the choices of the candidates. Employee well-being is linked to productivity and engagement. Your employees are your most valuable assets and you need to take care of them. If not, then you lose your credibility as an employer and you lose your employer branding identity as well.
When employees leave your Company for any reason, be happy for them. If they found a better opportunity, invest some time to make a market research on your employment identity e.g. benefits, working environment, management style, culture, and more.
Your main goal is to engage your employees; engagement is not a simple act, it’s a life-time process.
Hire professionals or discuss your concerns with HR Management Consultants.
Create a SWOT analysis and find ways to reduce employee’s turnover and to keep your top performers in your Organization.