It is not only important to hire the best employees, but to keep them on the job. High retention rates make things flow smoothly in the workplace. Low retention rates, which can be caused by things like low employee morale or lack of recognition, hold your company back and can become very costly. These five tactics can help ensure higher retention rates within your workplace:
1. Challenge Your Workers
Give them productive work that pushes and challenges them – do not just give them busy work. If they feel like they are accomplishing something and helping the company every day, they will be less likely to leave.
2. Offer Benefits That They Can’t Get Elsewhere
Benefits can provide additional compensation that goes beyond wages alone, which could be more attractive to an employee than a higher hourly wage. For example, offer them stock in the company as part of an annual benefit bonus. This gives them something unique and valuable, and it also encourages them to work hard because they earn more if the company grows.
3. Create a Stress-Free Environment
There is a balance here because you do not want to spend time making work so fun and enjoyable that people are no longer productive. However, stress and overwork are two of the main reasons that people quit jobs. To reduce stress, allow employees to keep standard hours rather than making them stay late frequently, and have a bit of flexibility with deadlines. Also, spread the workload out among multiple individuals, and do not be afraid to delegate work yourself.
4. Help Your Employees Improve
There are many ways to do this, from job site seminars to paying for employees to take night classes at a local college, so they can receive advanced degrees. Help them better themselves. They will appreciate it, and they will be better employees because of it.
5. Embrace a Team Atmosphere
People want to be part of a team. It is a natural tendency. Show them that they are a valued part of your corporation – that they are needed and appreciated – and there is a much smaller chance that they will move on.
With these tactics, you can work towards higher retention rates within your organization. This can increase productivity and make all of your workers feel like they are part of a stable, secure working environment.
High employee retention rates can be great for your business, especially in terms of recruitment purposes. Lower employee turnover rates can indicate to prospective candidates that your organization is a stable and satisfying place to work. High morale and huge cost savings are just a few of the benefits of maintaining high levels of employee retention. Here are some other ways that high retention rates can positively impact your company:
The longer employees stay with your company, the better they will be at their job. Under good management, their job knowledge and skill level will steadily increase over time. Having more tenured employees could lead to more sales, better service and increased productivity. Additionally, your staff may have a stronger understanding of your business and its customers. Kristen May, contributor at the Houston Chronicle, wrote that “Low turnover makes it easier for the company to focus its time and energy on the business at hand rather than adapting to new staff.[i]”
Countless studies have attempted to measure the true cost of employee turnover. A recent study by Inc.com reveals that the true cost of employee turnover can be as much as 150 percent of their annual salary for higher level positions[ii]. With this in mind, one thing is certain: employee turnover is costly – the time and resources your company will save on recruiting and training new employees can be invested into keeping your existing employees happy.
Higher Customer Retention
While your customers likely chose your company for its high-quality products and services, they stay loyal because of personal interactions with your employees. Customers enjoy a stable staff that they can build relationships with. It can make them feel more comfortable about stopping by your store or calling customer service. In addition, employees that have been with a company longer will be more knowledgeable about your products and services. This can be a huge benefit to your customers.
High employee retention rates are good for your customers and your employees. While your customers benefit from the knowledge and expertise of more seasoned employees, your employees will benefit from deep bonds with their co-workers. Keeping your retention rates high can leave you with a happy, well-functioning company.
In the business world, finding and hiring the right people is critical to the overall success of a business. While there may be times when the workload necessitates finding an employee quickly, there are some major benefits to taking more time to find the right person. Here are 4 reasons to take your time when hiring someone new:
1. Preserve Your Company Culture
You and your team have worked hard at building a positive, productive work environment. Spending a little more time searching for the right person may allow you to find someone that fits into your already well-oiled machine. Patrick Hull, a contributor at Forbes, wrote that “It’s important to have managers and other team members involved in the interview process. They provide important perspectives and make sure that the new employee will fit with the existing culture.[i]” A longer hiring process would give you more time to involve other team members within your organization, whose opinions can help gauge whether a potential candidate is the right fit or not for your organization.
2. Find the Right Candidates
The beauty of using recruitment services is that you have a seemingly endless talent pool to choose from. Recruitment experts specialize in finding the best and brightest minds in your area. Investing a little more time to find the perfect candidate will be well worth the wait.
3. Check Credentials
Spending more time finding the right hire means that you have the opportunity to more closely screen your pool of candidates. Take advantage of this by contacting references, reviewing their work history and making sure that they are well-qualified for the job.
4. Interview More
When it comes to recruiting techniques, few are more effective than face-to-face interviews. A candidate may seem like a perfect fit on paper, but their personality may not be well-suited for your team. Likewise, there may be instances where a candidate lacks the experience or the education that you are looking for, but has a work ethic and attitude that makes them worth training.
When it comes to finding the right employees, there are no set rules on how long you should search. Depending on the size of your company and the type of vacancy you are looking to fill, this could take anywhere from a few days to several weeks. Taking the time to really dive in and explore your potential talent pool is always time well spent.
As leaders in the recruiting industry, we know how important it is to employ the right questions and techniques to find the jewels in your candidate pool. However, despite your best efforts, there will be times when a bad employee manages to slip through the screening process and land on your payroll. When this happens, the reduced morale and lost productivity can quickly become costly. In fact, according to the U.S. Department of Labor, a bad hire costs an average of 30 percent of the employee’s first-year salary[i]. For a new hire with an annual salary of $50,000, this can mean a $15,000 loss to your company.
Here are the most important warning signs of a bad hire:
Warning #1: Bad Attitude
Your new hire was smiling and friendly during the interview process but now does not get along well with others. This can be a huge sign that you may have a bad new hire on your hands. Additionally, behaviors like attendance problems or overuse of social media are also red flags.
If you have not observed this behavior yourself, do not rely on the rumor mill. Take some time to speak with the supervisors, managers and staff that work directly with the new hire. Once you have enough information to validate your concerns, it is time to initiate a neutral discussion with the employee.
Warning #2: Lack of Interest
New hires are often excited about their new positions and buzzing with questions. If you have a new hire that does not seem to ask any questions, this can mean they are not interested in the position or do not understand the job.
No matter which of these instances is the case, this situation should be monitored closely. If the employee is simply afraid to ask questions, take some time to make sure they feel comfortable coming to you or an immediate supervisor. Employees that do not communicate well may negatively affect productivity and morale. New hires that attempt to master their job on their own can create other issues.
A bad new hire will happen every now and then. Making sure to address this problem swiftly is key. Allowing a new hire to poison your work environment can lead to many more issues down the line.
When the pool of applicants for any given position doesn’t meet your standards, the next step is to attract high-quality candidates away from your competition. While many in the recruitment industry call this “poaching,” it is a natural move that can benefit the potential candidate as well as the company willing to pay the most for the employee.
Ask Recent Hires Who They Admire Most in Other Companies
To find out which potential candidates are bringing the greatest amount of success, talent and leadership to your competitors, Venture Beat suggests asking recent hires for advice on who in their business network might be a good match for the company[i]. If enough people repeat the same names time and time again, you have a great target for a potential hire that would cripple the competition and put your business at a major advantage.
Start Out Subtly
If possible, hire a search firm or head-hunting group to initiate the idea of job prospects without being pushy or intrusive. Prospects who are interested will naturally follow up, and then your recruitment team can take over through direct communication with the potential employee. Brenda Snyder, quoted in an article from Inc.com, suggests “Using your professional network to spread the word that you’re hiring and approaching the candidate you’re interested in on neutral ground.[ii]”
Find Out What Candidates Really Want
Blindly making an offer is rarely the right way to attract top talent to your company. Instead, be upfront about your desire to work with the candidate, and have them explain what they need to make the move to your organization. This article from the Harvard Business Review reminds hiring managers to think beyond simply financial remuneration, such as allowing board members to sit on commercial boards as well, or perhaps including stock options for employees in lieu of a higher salary.[iii]
Don’t Ignore Any Legal Concerns
In many competitive industries, and especially when it comes to talent that’s working in research or development, there are some legal concerns to consider before poaching employees from competitors. According to attorney Stacy Bekman Radzit, “it is prudent for employers to ask potential new hires whether they are under a contract that would prevent them from working for that employer. Employers can request such information in a job application or in an addendum to an employment agreement, if one is to be executed.[iv]”
These tips can be vital when it comes to hiring away top talent from your competitors. Keep in mind, however, that you should also focus on nurturing your top performers because competitors may be reading this very same article.