Talent Retention – You cannot afford to lose your best employees.
It’s no secret that turnover can be expensive and damaging to your organization. Combine the hard costs of recruiting, training and lost productivity with soft costs like those associated with lower company morale, and it could cost as much as one and a half times an employee’s annual salary to replace them. Business executives do not argue the point that retaining employees, particularly star employees, is more economical and preferable to recruiting and training new ones. So, how can your organization entice key players to stay and thrive, particularly when the job market picks up and exciting new jobs are beckoning from every direction?
Here are our top 7 retention strategies:
- Choose wisely. When you select the right candidate to fill an open position (one that fits into your company culture, is there for all the right reasons, believes in your company mission and is driven), you have a huge head start in the retention process. If choosing the right candidate seems to be your organization’s sticking point, re-evaluate your hiring process. What questions are you asking during interviews? How many interviews are conducted and by whom? Are you being honest about the job responsibilities and company culture? Do you conduct background and reference checks? Do you administer personality profiling tests? Remember, there are professionals that do this for a living! Consult a professional recruiter or enlist their assistance. It may very well be cheaper in the long run when your turnover rates decline.
- Make an offer they can’t refuse. Money doesn’t grow on trees – we get it – but it is essential that your compensation package is competitive in the marketplace. Remember, it’s not just salaries that make up the full compensation package. Offering attractive benefits is just as important. There are so many unique benefits beyond the traditional medical, dental and retirement plans that may attract employees such as pet insurance, free or discount gym memberships, a company cell phone or vehicle or simply a flexible work schedule.
- Develop your talent. People want the opportunity to both learn and share their knowledge. What better way than to create a mentor program or lunch ‘n’ learn series where employees get to share knowledge and learn on a regular basis? People like to know they are building valuable skills and have the potential for career movement. Champion career and personal growth through training, education, cross-training and challenging assignments.
- Communicate what matters. Ensure your employees know the company’s mission and vision and how major decisions are made in accordance with them. Communicate goals, roles, and responsibilities so people know what is expected and feel like they are ‘in the know’. Hold company meetings on a regular basis.
- Offer feedback and performance based rewards. Praise good efforts, recognize excellent performance and celebrate successes. Consider a performance based bonus program where employees earn a percentage of the profits when they meet target goals. And while you’re at it – why cap it? The higher their bonus, the higher your company revenue.
- Make going to work fun. Employees spend a good portion of their waking hours at work. Who wants to dread a majority of their day? Make work fun by engaging and employing the special talents of each individual. Nurture and celebrate organization traditions. For example, host a catered picnic lunch every summer or run a food or coat collection drive every November. Pick a monthly charity to help. Most importantly, encourage friendships at work. Everything is more fun with a friend.
- It’s all about the work-life balance. Your employees’ lives do not revolve around work. You know it. Now let them know you know it. Allow flexible work hours, close the office early before a major holiday and encourage employees to use their paid time off. Staff your organization adequately so overtime is minimized for those who don’t want it and people don’t burn out on work.
Retaining key talent is a strategic process that takes time as you analyze your workforce and develop programs accordingly. If your business needs help retaining talent, talk to Tandem HR today for a FREE consultation. Tandem HR is a Professional Employer Organization (PEO) in the Chicago area that assists hundreds of small and mid-sized businesses with creating exceptional workplaces. We also help clients save time and money while growing their business by taking on the administrative tasks associated with human resources, benefits, payroll, tax administration, regulatory compliance and risk management.