Every month, approximately three million Americans quit their jobs.
High employee turnover rates are a serious problem throughout the country and across all industries. Did you know that, when you keep your employee turnover low, you can increase your business’s profitability? Who doesn’t want that?
Do you need to help to improve your employee retention rates? Do you just want to make sure your employees are happy and stay loyal to your company long-term?
Either way, we’ve got important information for you.
Read on to learn six strategies that will help you to improve your employee retention rate.
Importance of a High Employee Retention Rate
A high employee retention rate is essential if you want your company to flourish for years to come.
There are many reasons why high employee retention matters, including the following:
- Save time and reduce stress
- Improve workplace morale
- Reduce employee acquisition and training time
- Create experts within your company
- Increase efficiency and productivity
- Better serve your customers
- Save money
If your company has a high employee retention rate, you’re also going to have an easier time attracting talented employees in the future.
Happy employees leave positive reviews on sites like Glassdoor — such as the reviews for Healthy You Vending — and these positive reviews increase the likelihood that job-seekers will consider your company when they’re getting ready to try and find a new job.
Improving Your Employee Retention Rate
Yes, high employee retention rates are important. How do you improve your ability to retain employees, though? Start by implementing these six strategies:
1. Practice Selective Hiring
You’ll increase your chances of retaining employees if you’re selective with whom you hire right from the beginning.
When you’re screening candidates for a particular position, pay careful attention to the potential warning signs they might give off.
For example, have they had a lot of different jobs in the last few years? If they have, this might be a sign that they’re a job hopper and aren’t planning to stick with your company for a long time.
Ask candidates about their long-term goals and find out how long they want to work for your company.
Try to find candidates who are interested in growing with the company instead of getting experience that they can use to get a different position at a different company.
2. Create a Great Culture
Make sure your company culture is the type that makes people want to stick around for a while, too. Great company culture is essential if you want to experience long-term employee retention.
How do you improve your workplace culture? Start by talking to your current employees. Reach out to them and ask what they like about the culture and what they would like to change.
Think, too, about the kind of employee you want to attract. Then, find ways to tailor your workplace culture so that it brings in those kinds of employees.
If you want to bring in serious, studious employees, foster that kind of culture in your office. If you want to bring in innovative, creative types, you might need to work on making your workplace culture a little more laid back and collaborative.
3. Provide Employee Training
If your employees don’t feel that they have adequate support and training within your company, they’re not going to want to stick around for very long.
After all, it’s difficult to feel motivated to work hard when you’re constantly playing catchup and trying to learn new systems because you weren’t properly trained in the beginning.
Put together a thorough training system for new employees so they have plenty of time to get used to the atmosphere and have the support they need to thrive within your company.
Make sure employees know that they can ask for help when they’re struggling, too. This will ensure that you have a positive culture within your office.
4. Pay Them Well
Employees are going to be more motivated to work hard for you if they’re receiving a fair living wage in exchange for that work.
It can be difficult to pay a competitive salary when your budget is tight. This is especially true when you’re running a startup or small business.
Remember, though, that it costs more to replace an employee than it does to retain a current one. If you can find the room in your budget to offer your employees a competitive wage, you’ll end up saving money later on.
5. Be Flexible
Depending on the type of business you run, your employees might benefit from increased flexibility on your part.
Even though you might thrive on a traditional 9-5 schedule, your employees might not. If you can offer flexibility when it comes to scheduling, your employees are going to feel happier and more satisfied with their jobs.
Remember, too, that allowing more flexibility can actually help your employees to serve your customers better.
For example, if you let an employee come in late and stay late, they’ll be available to respond to customers who call outside of normal business hours.
6. Reward Your Employees
Finally, make a point to reward your employees when they go above and beyond for you.
Even if you don’t have the budget to give them a raise, you can still look for ways to show your appreciation and let them know that you’re happy with their work.
Maybe you can offer them an extra personal day or an extended lunch. Something simple like a handwritten note can also have a big impact.
Need More Business Advice?
As you can see, the higher your employee retention rate is, the better of your business will be long-term.
If you keep these guidelines in mind, you’ll have a much easier time retaining employees and giving your business the boost it needs.
Do you need help with other aspects of your business?
Whether it’s employee managing, improving morale around the office, or outsourcing particular aspects of your business, we’ve got resources for you.
Check out the Business section of our site today to learn everything you need to know.
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