Employee Retention: 5 Tips for Reducing Workforce Turnover

You don’t need to be in business long to understand how costly employee turnover can be. Every time you have to go through the process of recruiting, interviewing, hiring and training it costs your business both time and money (if you want to know just how much, check out this online calculator). So how exactly do you locate and build a team of talented workers that will be loyal to your business and committed to the long haul? Here are a few tips and suggestions to help you reduce employee turnover.

Be selective. No matter how eager you are to fill that role, hiring the first candidate that waltzes through your door probably isn’t the best idea. It’s important to take your time and be thorough, from carefully wording your job listing to taking the time to read through cover letters and resumes to calling references. The more you do your homework, the better your chances of hiring the right person for the job.

Start on a trial basis. It’s completely acceptable in the business world to hire an employee for a specified trial period to see if the role is a good fit for both of you. Implement a time period, such as 90 days, during which you and the employee can get acquainted and his or her performance can be measured. This way you can avoid investing in someone who either isn’t a good fit or isn’t likely to stay.

Provide growth opportunity. While your new employee may be perfectly content with her job duties when she’s first hired, chances are she’ll eventually be looking for the opportunity to grow in her position. Most people don’t want to stay in the same role forever. By providing advancement opportunities for your employees, whether it’s added responsibility within their present role or promotions to new, more challenging positions, your team will be more loyal and more likely to stick around.

Offer flexibility. These days more and more businesses are beginning to offer their employees the option of working remotely or flexible hours. This has been shown to greatly increase employee morale, which directly relates to higher retention rates. Allowing your team to take turns working from home isn’t as complicated as it may seem, particularly with today’s technology. For instance, things like cloud computing and virtual phone systems help everyone to stay connected and on task, regardless of physical location.

Provide good benefits. This means much more than just traditional health, dental and retirement benefits. Employees want to feel valued and respected. Allowing for ample time off and providing other perks such as a weekly free lunch or employee discounts can make a huge difference when it comes to employee turnover. Be creative and think about what you would value if you were the employee. Remember, a team that is healthy and happy is likely to stay with you for the long haul.

To be truly successful in business you have to build a solid team of employees that share the common goal of doing the best they can to see your company thrive. By carefully seeking out and selecting the right candidates and then providing your workforce with a healthy and positive work environment, you’re much more likely to end up with a happy, loyal and focused team that will stick with you for the weeks, months and years to come.

Labels: business, small business, workforce