When recruiting employees for your organization, there are lots of things that you must take into consideration. One of those is their lifetime value to your company – how long are they going to stick around, and are their contributions going to help you to increase profitability?
There are a number of reasons why employee retention levels could be low, many of which are commonly overlooked by entrepreneurs and managers who are simply too busy to think about their staff on the front line. If you want to increase employee loyalty and reduce your employee turnover rate, then read on for our employee retention techniques and ideas.
Bad management leads to low employee retention
As business owners, we all think that we know how to retain employees, but if key members of staff are leaving your business, then that may be because of bad management. The old saying is true – an employee doesn’t leave a company, they leave a boss. Talent retention is important, as it can cost you hundreds or even thousands of euros to replace a key member of staff, so consider overhauling your management style and asking for feedback from staff.
Poor pay causes high staff turnover
If you are concerned that your employee retention rate is higher than it should be, you should turn your attention towards salaries. In today’s increasingly competitive world, top talent has more power in the workplace than ever before. If an employee thinks that they’re working too hard for too little remuneration, they’ll look to other companies for employment.
As part of an employee retention program, you should look to compensate staff according to their skill set, experience level, and loyalty to your organization. It’s more cost-effective to pay staff well than to lose them and have to spend thousands on recruitment every month.
Not monitoring employee satisfaction
Another reason why employees choose to find alternative employment is through boredom or feeling dissatisfied in their position. You should monitor employee satisfaction and speak to staff who do not contribute or seem like they’re part of a wider team, as the chances are that they’re feeling disengaged in their current position. There are lots of things that you can do to increase employee involvement, such as giving them new responsibilities or autonomy over their workloads through project management tools. A personalized approach is critical.
Ignoring your employee turnover rate
Some businesses are happy with their employee turnover rate and consider resignations as a way to grow their bottom line. In the majority of cases, however, businesses cannot afford to lose staff, as they’ll not only have to spend time and money recruiting replacements, but they will have to overcome short-term skills gaps through outsourcing, overtime or turning away new business. Ignoring employee turnover rates is a mistake – always be on the ball.
Lack of staff retention strategy
Another reason why retention levels may be low is because you do not have an effective staff retention strategy. From the moment a member of staff expresses their intent to resign or move to another organization, you should do everything in your power to keep them with you. Many managers consider resignations a stab in the back or a sign of disloyalty, but the truth is that it’s often a cry for attention or a last-ditched attempt to overcome an issue within the organization. Collecting feedback from all departing staff, and having procedures in place to encourage employees to reconsider a resignation, is critical to long-term success.