Recent polls show that over 40% of US workers are actively searching for a new job.
The costs of losing an employee range anywhere from 25% to 200% of annual salary due to lost productivity, hiring a replacement, and training the new employee. In addition, there are the intangible costs of impact on the work environment and employee morale.
“Let’s face it, people don’t stay in jobs forever. There will always be turnover and that can even be a positive. Replacing staff can have benefits, but you want to retain the strong players and have some control over your workforce. Avoiding a mass exodus is always important.”
What are some strategies to retain staff?
An easy answer is to offer a pay increase when someone resigns and hope that they will stay. That’s usually not the right answer and is at best a short-term solution. The reasons that an employee decides to leave are not typically only about pay.
A better solution is to create a great retention strategy to stay ahead of the curve. Some of the ways that retention benefits the business are greater productivity from more experienced employees, stronger relationships and continuity on your teams. Those things lead to more success for your business.
Here are some of the things you can put in place as part of your retention strategy:
- Start with your hiring process. Hiring the right people with skills, goals and alignment with the culture of the organization goes a long way. Once you hire the right person, you should ensure that you have a strong onboarding process. Make sure that the new hire has what they need to get started, including a tour of the facility, company for coffee or lunch the first day or two, introductions to key team members and other functional areas of the company. Follow up with regular communication from their manager or a “buddy” for questions and regular check-ins.
- Managers play a critical role in retention. Train managers to be leaders and strong communicators. There’s a tried-and-true expression that says: “Employees don’t leave bad companies; they leave bad managers.”
- Employees want to know that they are making a difference in the organization and know that they are moving forward in their careers. Recognition programs, promoting from within, and creating career opportunities are key to retaining strong contributors.
- Measure and support engagement throughout the employee lifecycle. Check-in frequently to gauge the work climate and overall morale. Things change and regular communication can help your organization to stay ahead of problems. Consider conducting regular short surveys to identify issues that are important to your employees.
- It may go without saying, but a competitive pay and benefits program is also important.
It’s never too late to create, review or change your company’s retention strategy, and it’s more important than ever given the tough recruitment market trends.
Article provided by OneDigital