Recruiters and HR managers work hard to hire the right people for the job. On average, it cost around $4,129 to go through the process of recruiting and hiring an employee.
The last thing you want to hear from an employee, especially a great one is…
“I am leaving.”
You can ask any manager and they will all tell you that hiring a replacement is usually one of the more stressful parts of their job.
Not only is it expensive but it’s difficult to know how your team will react to the departure of this employee especially if they have a crucial role in their department.
The United States unemployment rate is at 3.6% as of October 2019, according to the Bureau of Labor Statistics and hiring top talent becomes even more difficult with the competition constantly poaching your applicants and employees.
With unemployment and competition constantly making your life difficult i can be hard to keep your employee retention up. That is why it’s crucial to have a Retention Strategy in place.
What is a employee retention strategy?
- Employee Retention Strategy?
- A well thought-out, comprehensive plan that addresses what actions will be taken to retain current employees by listing out assumptions of tools, people, and budget needed to be successful.
How do you retain employees?
Here are some innovative employee retention strategies.
Your first thought might be to focus on compensation, however only 12% of employees say they left because they wanted more money.
89% of bosses believe an employee leaves because of money even though that is not the actual reason, most of the time.
So, why do most people leave a company?
Well, according to the research provided by inc.com 79% of employees leave because they do not feel appreciated.
1. Recognition & Rewards
We are all adults and don’t need to be recognized for everything we do but it sure makes us feel good when we are.
Recognizing and rewarding people for a job well done is an easy way to make employees feel that they are valued, which in turn builds their loyalty to the company.
Create a culture that allows your employees to develop an environment that every single person contributes to in his or her own way.
Companies that train their employees more often have better retention. Not only do they have better retention but they have better performances too.
Invest in your employees and they will be sure to take care of you and even become an advocate for your company.
This has the potential to bring in top producing talent from word of month aka employee referrals.
3. Lead don’t Command
Nobody likes being told what to do.
It’s hard to show up at work every day if your boss is constantly telling you what you did and how you need to fix this and that. You want a leader not someone that will just tell you what to do.
Take the time to understand your team members and why they might have done a task a specific way and guide them in the right direction, if needed.
4. Give opportunities to learn other skills
It’s important that employees do their jobs and do it well but if you give them the chance to learn another skill it could help them perform better.
They could combine this new skill with their current jobs and perform better. Give your employees the chance to learn other aspects of the company.
Let Marketing learn accounting, encourage your developers learn how to sell.
If people want to learn you should always support them and give them the opportunity (as long as it doesn’t interfere with their work).
Next steps to create an employee retention strategy
Creating a strategy isn’t something that can be done in a day and it certainly can’t be implemented so quick.
Start with creating a comprehensive employee retention strategy outline and optimizing your next steps once you get to each next milestone.
If they aren’t working then change what you are doing. Maybe that option won’t work for your company.
Employee retention can seem like a daunting task to figure out. If you create a detailed plan and stay accountable to the day to day action items that are closely aligned with your overall goal, you will find great success and improve employee retention and your company’s bottom-line.