Any company that has a high employee turnover rate will undoubtedly have to spend more time and money to attract high-quality candidates to work for it. A report prepared in 2017 by the Work Institute declared that every time a skilled worker leaves a company, it will cost it somewhere in the neighborhood of $15,000 to replace that person.
If you were to lose several employees in a short period of time, you can multiply that figure by the number of employees lost, and you will see that it can be a very significant expense. On the other hand, if you were to take steps to retain your best employees, you could save a considerable amount of money, and your bottom line would be much healthier.
Here are some effective strategies you can implement right away that won’t cost your business an arm and a leg and will almost undoubtedly improve your team member retention rates.
Hire appropriate individuals
One good way to avoid a high turnover rate is to hire the right individuals in the first place. In exit interviews, employees often declare that they would have stayed longer if they’d had a better idea about what their role in the company was expected to be. Make sure that you accurately describe the requirements for any open position you have and be clear about what you expect from each individual employee.
Don’t leave out any of the important details about a position just because you’re trying to quickly fill an opening. You may find yourself back at square one very quickly. Finding the right fit for any employee in an open position involves being as transparent as possible about what the job entails, as well as what skills are necessary to do the job effectively.
Recommended Read: How Pandemic Unemployment Is Impacting Business Owners
Prepare a good onboarding process
You can start a new employee off on the right foot by providing a really solid onboarding process. After explaining a new hire’s role and responsibilities, you should also inform them about your company’s culture, mission, vision, and how the employee will fit into those overall objectives and goals.
Make sure your expectations are clear about their performance and try to provide an accurate picture of what the first few months of their employment will be like. Ensure that they have access to appropriate personnel whenever they have any questions or issues that need to be addressed. This is a good way to prevent a new employee from being overwhelmed by the details of an entirely new position.
Offer useful training
In order for any employee to be successful on the job, they will need to possess the knowledge and skills required by the position. It may be necessary for you to provide a combination of online training, classroom training, and hands-on opportunities in order to clearly convey what company policies and procedures are.
When an employee can be better informed about what’s expected of them and is equipped with the appropriate tools to succeed, they will have a better chance of making a good contribution to the company. Continue any training until a new employee demonstrates that they have mastered the skills necessary to perform their new duties. Then, provide opportunities for professional development so that employees can continue to learn and grow.
Provide appropriate compensation
One of the primary reasons why employees leave a company is that they don’t feel they’re being compensated fairly or because a competitor is offering a significantly better salary. Of course, it’s not just money that keeps an employee in place. Healthcare and insurance can be major factors as well, and all of that falls under the compensation package.
Whatever you offer in the way of compensation to your employees, it should at least be in line with what other companies in your field are providing. If your pay scale is below that of other organizations in the area, you should either improve your pay scale or find other ways of compensating an employee to make up the difference.
Monitor manager performance
If you’ve ever talked to a disgruntled employee and asked the reason that they left a company, one of the recurring stories you’ll hear is that they couldn’t get along with a particular manager. If you have a bad manager in place in your company, that individual can be a source of employee turnover, just like a really good manager can provide positive appeal for your company.
Don’t assume that your managers are all carrying out their responsibilities in the most effective way, and be especially careful about managers whose personalities are sometimes socially suspect. This is a case where soft skills come into play in a major way. If you have managers who don’t deal well with people, they could be pushing away great employees in droves.
Many people like to be recognized when they achieve something exceptional, and employees are certainly included in this group. Whenever someone has performed far beyond expectations, you should take the time to celebrate it and recognize their accomplishments throughout the company.
Not only will this demonstrate your gratitude for superior performance, but it also shows others that they can also achieve this kind of recognition for excellence. One of the largest reasons that employees leave a company is because they don’t feel appreciated, so you should take every opportunity to reward outstanding performance with some kind of worthwhile recognition.
Make your employees proud
We live in an age where people want to contribute to positive solutions, rather than contributing to some kind of world problem. You can make your team members proud to be part of your workforce in any number of ways, and this will contribute toward employee job satisfaction in a significant way.
For instance, your company might be heavily involved with contributing to charities and other worthwhile organizations. Your company might also have established a family-oriented workplace, which makes employees feel very comfortable and satisfied with employment there. More than at any time in the past, employees want to know that they’re working for a company that is a positive force, and when they find that company, they are more likely to stay in place and continue to support it.
Need help managing unemployment claims?
For mid-to-large-sized companies, having to fire or lay off employees or having them quit on you altogether is, unfortunately, unavoidable, even despite your best efforts. Of course, some of these ex-employees will file unemployment claims against you, and depending on the number of employees you’ve had, managing these unemployment claims can be very difficult.
Unemployment Tracker is here to help. We help businesses with a large number of employees more effectively manage their unemployment claims and even dispute fraudulent claims that are based on false information. If you need help managing your unemployment claims, give us a call at (810) 279-0501.