A company’s workforce is considered to be one of its greatest assets. Hiring the right kind of employees can help a business achieve its goals. Unfortunately, some businesses experience high employee turnover rates. Workers tend to leave even before they’re able to make a significant contribution to the organization due to many reasons. Whenever an employee resigns, the company needs to spend more time and financial resources just to search for an immediate replacement. This often results in reduced productivity and delayed achievement of company objectives.
Thankfully, there are a number of ways you can improve your company’s employee retention rates. We list down 5 tips that can help you reduce employee turnover down to a minimum.
Offer Competitive Salary and Benefits
Salaries are often discussed during the hiring process and drafted into the contract once the employee starts at his new job. Employers need to make sure they keep their end of the agreement. Once the new hires complete the probationary period and they become regulars, they should be given the same benefits as the other company workers. Managers should also look into the possibility of increasing their salaries or providing them with additional benefits if they show exceptional performance.
Instituting an employee incentive program provides additional motivation for employees to perform well at work. Rewards are a means to show that people’s efforts and achievements are recognized and valued.
One effective way of implementing the incentive program is by using an intelligent automated incentives management platform. Such a tool gives employers better visibility and insights when it comes to tracking their employees’ performance. Not only does it help prevent miscalculations of bonuses and cash rewards due to human error, it also integrates the workflows of different divisions and organizes communication among the different department heads. This way, accurate and transparent benchmarks and guidelines can be created across the board, eliminating possible personal biases and unjust distribution of rewards.
Create a Happy Working Environment
Employee retention is higher in companies with pleasant and happy working environments. That is why enterprises nowadays are investing more in keeping their employees satisfied and happy. Companies such as Google, Microsoft, and Hewlett-Packard shell out a significant amount of resources to win the loyalty of their workers and avoid high turnover rates. Some companies even hold regular team building activities so that their workers can forge camaraderie through mentorship and companionship. Having colleagues who are supportive and equally motivated can be among the things an employee looks forward to when coming to work.
In today’s fast-paced society, more and more people are searching for that elusive work-life balance. This means being able to strike a healthy balance between building a career and doing fulfilling activities outside of work.
Today’s employees are susceptible to stress, resulting in health issues and being burned out at work. In order to prevent employees from quitting because of too much stress, employers need to encourage them to live good lives outside of work. This could mean being open to employees working on flexible hours and taking vacation leaves every now and then, as long as they deliver on their responsibilities.
Make Room for Growth and Development
More than desiring monetary incentives and rewards in kind, employees want to work in environments where they can feel a sense of purpose and self-fulfillment. Employees need to feel that what they do is important and that they are contributing to the company’s success.
Employees also thrive with the knowledge that their career can grow and develop over time within the company. Workers tend to stay with companies that provide them with numerous opportunities for career advancement. Promoting employees and giving them challenging tasks show that as employers, you value your people enough to invest in them.
All companies are faced with the challenge of maintaining a dedicated pool of employees. High turnover rates result in lot of drawbacks including loss of skilled workers, wasted time and effort in training, and additional costs brought about by hiring new employees. Fortunately, companies can increase their employees’ loyalty by offering competitive salaries, instituting effective incentives and rewards programs, being flexible, providing career advancement opportunities, and creating an amicable work environment. Ultimately, when managers make their employees feel valued and appreciated, workers end up staying and serving the company better in the years to come.