The success of your business relies heavily upon you and your team. Having a medium to high retention rate for your employees is an imperative factor in that success. A low retention rate will only hinder the performance that your business should be at. That means having to frequently hire new employees and spend precious time training them. The time used to hire and train should have been allocated to other tasks and projects. But, a low retention rate only leads to poor efficiency.
Having a healthy work environment will only lead to a higher retention rate. It will never be perfect as other opportunities do arise for some of your employees, but the rate should never be low. We’ll focus on some aspects that can potentially help your poor employee retention rate.
Investigate Why the Rate is so Low
One must understand the problem before a solution can be found. It is important to not just sit back and expect the problem to correct itself. You should be proactive in finding the root of the issue.
- Set up anonymous surveys
- Conduct “Staying” Interview (check in with employees staying at the business, and inquire about the reasons)
- Have HR conduct exit interviews
- Take the feedback with respect
Once you make the relationship between employee/employer feel more open to constructive criticism, then changes can begin to be implemented. Important to note, if you don’t agree with any particular feedback, don’t belittle the employee for bringing it up…other employees might feel the same but were nervous to speak up.
Potential Changes That Can Improve ERR
Adjust Your Benefits Package – One of the main reasons why employees stay at a business is because of the benefits. If the benefits meet the needs of your employees, they will have more incentive to stay. Adjust them accordingly. Read those surveys or exit interviews and take into consideration what needs to be done differently.
Provide Feedback – If you feel that an employee is doing a good job, tell them. They won’t get complacent if their work is getting praised, no, they’ll want to continue to try to impress. Employees often thrive off feedback, even if it is constructive criticism as it shows you care about their work.
Provide Room-To-Grow – Sometimes, when an employee feels there is no more room for advancement, they begin to get frustrated. This ultimately results in a two-week notice more times than not. Providing the promise of career growth will show you’re investing in your people and supporting them.
Flexible Hours & Location – Being able to work with your employees about when and where they work can be important. Especially now, remote work is heavily favored over work-in-person. If your business can support a flexible work schedule as well as let your employees work from home, your ERR will probably stay at a good level.
Every Voice is Important – No matter what level an employee is at within your business, every voice should be heard in one way or another. Not only listening to your employees but demonstrating that you actively listened by making adjustments will make them feel heard and respected.