Employee turnover can be a mystery for many business owners and HR departments. Hiring new people to join the team can be exhausting and costly, and companies should look into investing in different strategies that will increase employee retention and decrease employee turnover. Here are some of the best methods:
01. Examine your hiring strategy
Does your HR team hire the right people that you need for the job? Ideally, new hires should be fit for the position. Check your job descriptions. Do they attract the right people? Make sure that they are not only fit for the job role but also your company culture.
02. Let employees go when necessary
A probationary period exists to make sure that people that you hire provide value and fit in well. Use this time to assess if the employee is the right fit. If a particular employee isn’t doing well, don’t hesitate to let them go. However, make sure to tell them that it’s not that they are not skillful enough, but it’s more about you taking into heart your company culture.
03. Offer competitive compensation and benefits
Earning a liveable wage has become a major priority for most young people. If your company cannot provide them with competitive salaries, paid time off, work-from-home options, and other unique benefits, it would be easy for them to ditch your company for a better one. Even worse, it can become a cycle that can hurt your operations.
04. Recognize employees
If an employee is always going above and beyond their tasks, make sure to recognize and appreciate their efforts. Employees who feel valued become more engaged and committed. Ultimately, these employees will be invested and are more likely to be loyal to your goals. It would help if you can reward them with something tangible to make your appreciation more palpable.
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05. Encourage flexibility
Allow your employees to enjoy a work-life balance by giving them flexibility. This can have a direct and immediate impact on employee retention. According to a Boston College Center for Work & Family study, 76% of managers shared a decrease in employee turnover when they instituted flexible work arrangements.
06. Invest in employee engagement
Employee engagement should be part of your employee retention strategies. Pay attention to what they are saying and make sure that you act on any issues they are raising. This way, you can show them you are indeed interested in improving their working conditions. Act on the results, and you’ll see immediate changes.
07. Offer opportunities for growth
For some employees, the amount of paycheck would not be a big thing if you can provide them opportunities for growth. One survey revealed that high turnover rates are directly related to a lack of growth and development within a company. Good employees do not want to stagnate. When they feel like their tasks are becoming routine or are no longer challenging, they will quickly move on.
Now that you have these employee retention tips, it’s time to look into what your organization lacks and what else you can do to improve.