By Tilly Kidman
It’s always a good idea to set business resolutions for the year ahead, having goals to work towards can increase your motivation and set you off on the right foot for a successful twelve months ahead. Whilst your resolution might be to increase sales and profit, one aspect you should consider is how to increase employee retention. Here’s why.
3 Reasons to Increase Employee Retention
It’s financially smart.
It makes total financial sense to have an effective staff retention strategy in place, as otherwise it can really have an effect on your bottom line. Hiring staff is an expensive task, not only do you need to spend money on advertising the position, you’ll also spend a considerable amount of other employee’s time training the new candidate, and if it doesn’t work out? Then the process repeats itself. In fact some suggest that it can actually cost up to 20% of an employee’s yearly salary just to replace them. By ensuring your staff are happy in their positions and feel well looked after, it can save you a lot of expense and time in the long run.
It can increase output.
A happy team = enhanced productivity and productivity is the key to the overall success of your business. If your employees are feeling mistreated or undervalued then they’re unlikely to stay put and will seek employment elsewhere. Not only does this effect your overall business productivity but it can affect the overall performance of your team, and hinder efficient team work.
It will save time.
Time spent training new members of staff can be extremely stressful for existing employees who are likely to have to take substantial time out of their day to educate and train the new member of the team. This can have quite an effect on your teams existing workflow and ability to meet deadlines. Employees might find their usual routine to be out of sync whilst the new candidate is learning the ropes, and this can take anything for a few months to even a year.
4 Ways Increase Employee Retention
So, now you feel like an employee retention strategy would be worthwhile, it’s time to start thinking how you can offer something of value to your existing employees. Here’s a few pointers to help you on your way to a stronger team for 2016.
Allow Flexibility
It’s 2016, and the way in which we work has evolved dramatically within the last decade. Thanks to technology, it’s now much easier to work remotely or on the go. Many decide to go freelance now in order to have a better work and life balance. Offering a degree of flexibility to your work force such as ‘work from home days’ can be hugely beneficial and offer employees a welcome break from the restrictions of their office desk.
Offer Increased Facilities
Offering a comfortable environment with plenty of facilities is a simple but effective step towards building a proactive working environment. If you want some mega inspiration then just look in the direction of the Google offices, with everything from game rooms to restaurants to themed lounge areas, it’s a dream of a work environment. Baby steps though. Perhaps start by adding some essentials such as kitchen equipment, a watercooler and a perhaps a chill-out zone with sofas for employees to take a few minutes out from a stressful day.
Provide Incentives
It’s an obvious one but probably one of the most effective. We all like to be rewarded for our good work don’t we? Recognise your employee’s achievements with financial incentives such as bonus schemes, or if you’re a start-up/small business why not make it a fun team day out if you reach a certain target?
Offer Regular Training
It’s important to remember that training shouldn’t be viewed as an activity solely for new employees. You should try and focus on consistently developing your current team, not only so they learn and work on their own skills but to keep them mentally stimulated. Otherwise, the day-to-day could soon get boring and you may see your employees seeking new opportunities.
Make 2016 the year you review and evaluate your staff retention strategy! Of course, it won’t be a quick overnight fix, but ensure you listen to your employees. Why not call a meeting and discuss steps going forward? It’s important to have the viewpoint of your team on this, it’s all part of building a strong relationship and loyalty.
