We all know that employees are the most expensive investment for an organization. With an estimated 20 million U.S. employees changing jobs in the past year, employers are shelling out over 2 trillion dollars to cover the expense. There are a number of reasons cited for employees leaving their job for new adventures including lack of feedback, training, and career planning.
In order to improve employee retention we’ve come up with four ways to decrease the turnover rate at your workplace:
1. Hire Effectively. One of the most important ways to decrease employee turnover is to hire the right employees in the first place. Make sure to spend ample time on interviews and going after the right candidate. It’s necessary that you find someone with not only the right skill set, but that they are a perfect fit in your company culture, managers, and co-workers.
2. Offer Competitive Compensation. Now that you’ve spent countless hours on finding the right candidate for the job position, competitive compensation will be the deciding factor in if your candidate accepts the job offer. This doesn’t just include salary, but a comparable benefits package, vacation, life insurance and other perks that your company may offer. There are multiple reasons employees join and leave a company and often money is not the number one reason.
3. Show Appreciation. No one likes going to work day in and day out without any type of recognition for a job well done. One can usually tell when they aren’t doing their job correctly, but when they are doing their job correctly it’s nice to be shown appreciation. Creating a recognition culture allows employers to not only properly praise their employees, but when it comes time for harsh feedback their employees will be more receptive.
4. Outline Career Paths. The worst part of working at a job for one to three years is having absolutely no career goals or objectives. Work with your Human Resources department or hire an outside career coach to help your employees reach their career goals. Annual reviews, detailed career paths, and being generally open for career questions. Investing in your employee’s future will not only develop your own workforce, but also increase pride within your employees.
This list is by far not inclusive to things that should be done to boost employee morale, which in turn should decrease your turnover rate. By implementing things such as training programs, flexible work schedules, periodic compensation reviews, and an open door policy should create a welcoming environment to new employees while still retaining the old.
What does your company do to keep employees satisfied?