Running a business has a lot of moving parts. Focusing on staff retention often falls to the bottom of the priority list. At some companies, it may not even be on the list.
You might be surprised to discover:
The US Bureau of Labor and Statistics says that three and a half million employees have left their job voluntarily every month since January 2019. This does not include layoffs or other types of involuntary termination.
A survey by BambooHR found that nearly a third of those surveyed left a job before crossing the half-year mark.
And a CAP study found the average costs to replace an employee are:
- 16 percent of annual salary for jobs earning under $30,000 a year
- 20 percent of annual salary for positions earning $30,000 to $50,000 a year
- As much as 213 percent of annual salary for executive positions
Eight Ways to Make Staff Retention a Priority to Save Time and Money
So, how do your business’s numbers stack up?
Here are eight tips to help you keep the talented members of your team on board:
1. Select candidates carefully
The best way to keep employees is to start with the hire. The Wall Street Journal advises that you “Interview and vet candidates carefully, not just to ensure they have the right skills but also that they fit well with the company culture, managers, and co-workers.”
2. Promote personal time
Vacations allow workers time to relax and recharge. Flexible hours allow staff to better balance jobs with family, friends and other personal obligations. Hence, be a leader in personal balance by honoring your downtime and encouraging your staff to follow your lead.
3. Set a clear path for advancement
Provide your employees a clear career path. By doing this, you can work with them to define their long-term objectives. Plus, they will appreciate that you care for their livelihood and goals.
4. Offer competitive compensation and benefits
Periodically evaluate your compensation and benefits package. Do research to ensure that it is comparable to other firms in your industry and region. This way, you will be less likely to lose your top performers to other companies who may be offering more.
5. Appreciate your employees
One of the biggest drivers of happiness is feeling appreciated for your work. Therefore, managers who show sincerity, specificity and timeliness with their expressions of gratitude are more likely to keep their employees from leaving their jobs.
6. Provide development opportunities
Show that you care about your employees by offering subsidized professional development opportunities. They will develop or refine their skills, thus leading to a win-win for everyone.
7. Provide a comfortable and safe work environment and a positive work culture
Properly ventilate and light the environment. Keep the space at a comfortable temperature.
In addition, formulate your vision for the company and its culture. Afterwards, you will want to communicate it clearly to staff and update it as the company grows.
8. Conduct exit interviews
Exit interviews are a great way to collect information that will lead you to a deeper understanding about why people are leaving the company. Plus, you’ll get insight into what changes you could make to retain the staff you have.
Are you interested in digging deeper into more ways your company can save time and money? Then call us today to set up a meeting. Our experts at Saddock Advisory will partner with you to evaluate what is working and what areas need improvement.