It’s been said that a business is only as good as its people. This makes sense because your team members are carrying out the day-to-day operations in your business. However, your team could just as easily break your business. Employee turnover can be detrimental to your company’s overall success.
According to the Job Opening, Labor Turnover Survey (JOLTS), 3 to 4.5 million workers quit their jobs each month in the United States. When you consider that it costs roughly 50% of an employee’s annual salary to replace them, it’s clear that employee retention must be a priority.
Although it may seem like a logical solution, merely increasing your team’s compensation isn’t always a viable option. Chances are likely that it wouldn’t even be the most effective means of employee retention. Fortunately, there are a number of proven employee retention methods that could save you time and money, while also making your employees feel appreciated and adding value to your company.
A staggering 94% of workers say they would remain with their employers longer if they invested in their growth and professional development, according to LinkedIn’s Workplace Learning Report for 2021. Although many companies offer some form of employee development program, very few do it well.
Because people learn in different ways and at different paces, a “one size fits all” approach is often disappointing for team members who are genuinely interested in continued learning. The same report discovered that nearly 70% of employees prefer to learn at work. This potentially opens the door for team educational events or programs that could incorporate what each employee is learning into their work.
If your business isn’t set up to host internal workshops, perhaps tuition assistance and reimbursement programs would be a better fit. However, if you offer this type of benefit, it needs to be accessible. Oftentimes, companies will place too many requirements on the benefit making it prohibitive and leaving workers feeling as though it’s not worth the effort.
Regardless of the professional development or continued education program you decide to use in your business, it is an investment. It may cost you on the front end, but it can lead to a more skilled team and higher retention rates.
Flexibility of Schedule
Today’s workforce values the freedom of flexible schedules. Between work, taking the kids to soccer practice, school, and doctor’s appointments, people have more demands on their time than ever. Therefore, it’s no wonder flexible scheduling is so attractive to employees. It allows your employees the freedom to live their busy lives without the constraints of the traditional 9 to 5.
Since the pandemic, this has become much more commonplace. Many businesses have switched to a remote workforce or have allowed their employees the freedom to work from home when they need to. As a result, many workers have seen value added to their lives. They can stay home with sick children without missing hours at work, using paid time off, or falling behind on their projects.
Obviously, this isn’t something that can be done within every industry. If your business is one that requires frontline workers to serve your customer’s needs, this isn’t an employee retention method that will work for you. However, if a remote workforce or flexible hours is possible within your business, this is a highly valuable benefit to your team.
By allowing this type of flexibility, your team no longer feels they must choose between work and family. Additionally, they could eliminate the dreaded commute that eats up so much of the average worker’s time.
Improved Employee Onboarding
Onboarding new team members is a vital part of the hiring process. Unfortunately, many managers don’t understand the importance of proper onboarding. Instead, many companies’ onboarding process consists of filling out paperwork and not much else. But proper onboarding can be a powerful method of employee retention.
Starting a new job is often an exciting time in the life of a new employee. They’re entering into a new opportunity and a chance to add value to the organization. However, this can also be a source of anxiety. There’s so much to learn in a very short period and your new team member wants to make an impact as quickly as possible. This anxiety can lead to feelings of being overwhelmed or frustrated, and ultimately, becoming another casualty of employee turnover.
As important as onboarding is to secure the investment a company makes in finding new talent, the numbers indicate that most don’t take it as seriously as they should. The Society for Human Resource Management cites a study by Kronos Inc. and The Human Capital Institute that found 76% of businesses aren’t effectively onboarding new employees.
Meanwhile, 69% of employees are likely to stay with a company that has a great onboarding process for at least 3 years. Those who went through a structured onboarding process were 58% more likely to remain with the organization after 3 years. Similarly, organizations with standardized onboarding processes see a 50% increase in new hire productivity.
By these numbers, it’s clear that many businesses are missing a golden opportunity to greatly improve their employee retention rates. But what can be done to create a more effective onboarding process?
Don’t leave the new hire in a state of uncertainty between the time they’ve accepted the employment offer and their start date. Oftentimes, there’s no contact between the employer and employee during this time. This can cause feelings of uncertainty to fester and grow, leading to the new hire becoming disengaged before they even arrive. Instead, use the time between accepting an offer and their starting date to go ahead and complete the new hire paperwork online. This keeps them engaged during that dead space and frees them up to immediately focus on their new role within the organization.
Additionally, use the onboarding process to immerse the new hire into the culture of your business. Introduce them to your vision and mission. Provide them with a clear and definitive look at their new role and the expectations that come with it. Finally, don’t spend all of your time focusing on compliance. Although compliance is a necessary part of it, the true goal of onboarding is connecting new hires to the culture and people within your business.
These are just a few of the many examples of employee retention methods you could apply to your business. Finding top talent is a long, expensive, and difficult process. Keeping that talent once you’ve acquired it doesn’t have to be a difficult process. Try to see your business through the eyes of your team. Would you be inclined to stay for years to come? If not, begin exploring these and other methods to make your business an attractive and desirable workplace. Don’t be afraid to get feedback from your team about the types of benefits and procedures that they’re most interested in, and act on their suggestions.
Justin Goodbread launched his first business when he was 15. Since then, he’s created five businesses and become an award-winning financial educator. Justin is a featured speaker for the Exit Planning Financial Institute, the University of Tennessee, and more. He is the owner of Financially Simple, the portal that educates business owners on how to start, grow, and sell a business for retirement. Justin has been featured in Forbes, Fox News, and Yahoo! Finance for his financial expertise. Learn more at www.justingoodbread.com
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