Employee Retention: Three Key Points
As an employer, you put a lot of thought and effort into hiring the best employees. But can you say the same about keeping them?
Employee retention is critical to a healthy, well-functioning business. That’s because employee turnover costs you — in terms of money, productivity and morale.
So how do you hang on to the good employees? Sure, there are some things that as employers you can’t control. But you have a larger influence than you may think.
While every company has a different culture, there is one element that is consistent in any successful business environment: A feeling of belonging. As an employer, you can do several things to foster this feeling and build the company’s culture.
· Clearly defined vision: Your vision for the company — where you want to go and what you want to do — should be known, and shared, by everyone on the team. This gives them a sense of purpose.
· Strong leadership: It’s been said employees don’t leave companies, they leave managers. Managers assign tasks. Leaders provide guidance, coaching, and when needed, they roll up their sleeves to help get the job done.
· Employee well-being: Support your employees’ overall well-being, from both a health and financial perspective. This can be demonstrated through the tools, programs and benefits you make available to them.
For many employees, professional growth is just as important as salary. Especially for younger workers. A 2017 study by Comparably, a job market research firm, found that 32 percent of workers aged 18 to 35 ranked career advancement opportunities as a top attraction for staying in a job.1
Many large companies have professionals on staff to help employees plot their career and identify opportunities. But for other companies, formal development programs can be a challenge. For them, these companies can follow a simple 70-20-10 rule when it comes to their employee’s professional development:
· 70 percent — Challenging assignments, stretch goals and on-the-job experience
· 20 percent — Coaching, feedback and networking
· 10 percent — Formal training and development classes
Employee training and assimilation into the culture begin the day you make the hire. Take a good look at your onboarding program and identify areas of opportunity and improvement.
While culture and professional growth are important, don’t overlook the role of fair compensation. With today’s technology, anyone can discover within minutes whether they’re being paid competitively or not. But competitive pay is only the beginning. Flexible work schedules, work-from-home arrangements and paid time off when necessary are all part of today’s compensation package.
Other forms of compensation, such as employer paid voluntary employees’ benefits or non-qualified deferred compensation programs can help keep your most valuable employees in place. And they may provide the company with potential tax deductions. Oftentimes, offering meaningful benefits to your employees can cost the company less than a salary increase, while still having the same positive effect.
In the end, happy, satisfied employees are more productive, more innovative and present a better face to your customers. They become the backbone of a stronger company, allowing you to focus on improving your business model instead of constantly looking for new employees to fill seats.
1. Comparably 2017 Study: What Millennials Want. September 6, 2017 www.comparably.com/blog/study-what-millennials-want/