The Importance of Employee Retention: How to Keep Your Talent
Employee retention is often a reflection of a company’s health and success; high turnover rates can indicate low employee morale or problems in management, whereas low turnover rates show employees are happy enough to make long term investments to a company.
Employee retention is essential to companies for a whole host of reasons.
The first is that the hiring process can be very time consuming. Recruiting candidates takes up a lot of resources, from preliminary interviews with HR to taking time away from managers’ schedules to meet with the selected pool of candidates. Another reason why companies would want low turnover is because there’s a significant financial cost brought on by losing short term employees. Companies spend a lot of time and money training employees and if an employee leaves before they’ve returned the investment, it is considered a huge loss for the company. Not only that, it is likely that an employee who has defected will go on to work for a competitor who will then reap the benefits of a newly trained employee at zero cost to them.
Here’s some tips on how you can keep your talent from walking away.
The work environment matters. Employees who can envision themselves walking into your office every day for x amount of years are less likely to leave the company after a short period. Setting the right conditions to make employees want to stay is easy when you think about factors like employee morale, office perks, and open communication. To boost morale, make sure employees feel valued by celebrating their achievements and make an effort to get to know each of them on an individual level. As for office perks, be sure to shake things up from time to time by offering free lunch or announcing a fun and spontaneous competition to see who can get the most sales within the month. And be sure to always practice open communication. Make the effort to build a workspace where employees are comfortable contributing their opinions and thoughts in a team setting. Look to see if employees are engaging with each other on a regular basis and if they aren’t, take the time out to rethink your strategy.
Fun and Exciting Activities
The reality is the actual work that needs to be done is not always thrilling, so why not help make the best out of the situation and give your employees something to look forward to? Plan something exciting like a random team outing to a baseball game or dinner. Maybe mini golfing is more your team’s style. Whatever it is, make sure the activity you choose is a fun and great way for employees to get away after a long day of being glued to a computer screen. This not only gets your employees to associate your company with a warm, positive feeling, but also does well for a team bonding experience. When employees engage in outings together, it gives them a chance to develop a relationship outside of work that can actually strengthen the bond inside the office.
Managers are largely responsible for employee retention. Among their long list of responsibilities is training employees and making sure there’s a mutual compatibility between employees and the company. In essence, a new employee will usually look at their experience with their manager as a measure of their happiness and willingness to stay in the company. Managers should provide thorough training and make themselves especially accessible for questions during the training period. They should work closely with new hires as a coach and as a friend, easing their nervousness about joining a new time and reassuring them that the company is just as good a fit for them as they are for the company. As a manager, make the time to develop a real connection with your new hires and give extensive guidance and feedback that will keep your talent happy and invested in the company.