Employee attrition is a natural cycle in any business, and companies plan for that. But if you are losing your most talented people, then it can really cost your company. Inc. estimates that a company can spend almost 150 percent of an employee’s annual salary to replace them. These retention tips will help you keep your top talent and save your company money while hiring.
Hire the Best Fit
The first step of any retention plan is to hire the right people for the right positions, emphasizes TLNT HR experts. A person needs to possess the right skill set for a position, and they need to fit into the company culture. A mismatch from day one will lead to a retention threat.
Keep "company fit" in mind during the interview process. It is time-consuming, but having several managers and staff interview the candidate will weed out people who may eventually leave the company because of an unsuitable match.
Create a Feedback Loop
Providing regular feedback motivates an employee. They'll feel acknowledged, valued and validated — continuing to do what's right and improving upon what needs to be changed. The traditional annual review doesn’t give an employee opportunities to grow throughout the year. People want feedback and will act on it, especially if it makes their job more satisfying.
A short email of praise or verbal compliment will be appreciated. Also, help your team grow within the company by engaging in a constructive conversation about a project that wasn't executed properly, for example.
Foster a Positive Work Environment
A work environment that meets employee needs creates a space where they can be inspired, productive and content. Companies are making the workplace more pleasant and efficient by introducing a bring-your-own-device (BYOD) policy, highlights CIO. Companies must be prepared to support a BYOD environment, and security tops the list of concerns. Data loss and breaches, identity theft and bank fraud are threats of employees using personal devices at a workplace. Mitigate risks and threats by installing proactive measures, such as identity theft protection services, virus protection solutions and employee policies.
Define Clear Career Paths
Employees like to have direction within a company and a path for how they can move ahead. A clear and current career path outline should express to employees what the expectations are for moving into another position, as well as what the goals are for meeting, even exceeding, those expectations.
Managers should be able to tell an employee where they are on their path, as well as changes that can be made to stay on that path. For instance, if an employee is interested in eventually moving into a supervisor role, what classes or workshops do they need to take? Are there any special projects they can work on to help them move toward that goal, such as working on committees to write company policies?
Offer Competitive Benefits
WSJ Guides also recommends making sure compensation and benefits are comparable to the competition. The risk is that valuable employees will go to another company because of a unique benefit, so don’t rely solely on salary as the retention tool. Company perks can include BYOD environments, a virtual office and flexible work hours. Use these benefits for when salary increases aren’t an option.
This post was written by Jeremiah Jordan. Jeremiah is a teacher- turned entrepreneur who blogs about business solutions.