Can you believe that the cost to hire a replacement employee is 33% of the an annual workers salary, per Employee Benefit News? With historically low unemployment rates, it’s becoming more difficult to find good talent, so it’s important that human resources teams and department managers do everything that they can to manage their employees in a way that helps to retain their best people.
Of course, the employment retention rate varies by industry, but every company is (or should be) incredibly intent on keeping their rock stars.
If your company is finding this situation challenging, here are a few tips on how to retain good employees:
1. Day 60 is the same or better than day 1
On-boarding is so incredibly important to retain good talent. I mean, you put in all that time and effort to get them into your organization, why would you just drop them in a desk with some handbooks and procedures to review and then on day 60 say, "good luck!"?
Ensuring that your employees have a positive on-boarding experience is just as important as making sure your recruiting and application processes go well. The on-boarding process is your FIRST impression to engage with a new employee. You want to put your best foot forward and get them quickly and fully productive!
2. Incorporate flexibility
Gone are the days where we think we need our employees in the office at our beckoning call from 9-5 every day (plus we all know they aren't truly working all those hours!). Figure out ways to incorporate flexible work schedules and telecommuting into their days - you'll be amazed at the increase in their productivity and happiness. Just remember, it’s imperative to spell out the policy on paper and get it right so there’s no ambiguity.
3. Recognize hard work
Don't we all like to be appreciated and thanked for our hard work?! Recognizing your employees for a job well done is an important part of helping to ensure continued employee engagement. Your top talent is no different. According to a Robert Half survey, 89 percent of senior managers said their organization is effective at showing appreciation to workers, whereas 30 percent of employees gave their firms low marks when it comes to recognizing their achievements. Ouch - that’s an unfortunate disconnect.
Here's something to remember: People who routinely feel that their best work is ignored are twice as likely to say they’ll quit in the next year! So how can you recognize their work?
4. Are you REALLY communicating?
Lack of communication is at the root of MANY employee frustrations. Make sure your company is creating channels for honest, specific feedback to and from your employees and taking advantage of ways to provide praise and constructive criticism. Top-down communication can quickly become messy and convoluted.
Instead, focus on direct, one-on-one conversations and provide digital spaces like employee communities to allow workers to come together and solve issues without management always being in the middle. Think about what steps is HR taking to ensure managers receive proper training on coaching and communication techniques.
5. Promote from within
It can be disheartening to your best employees if you continually recruit from outside the company. They work hard and your strong performers want to know that they have a career path to promotion. Make it easier for them by ensuring you have developed a solid internal advancement program.
As a senior leader or business owner, are you creating a solid culture—one where employees feel that interactions with leaders is something valuable and generously offered? Retention is one of the critical components to creating an effective people management strategy. Comment below on ways you have struggled to retain good employees!