Employee retention is critical to the success of any business. According to the Society for Human Resource Management, the cost of replacing an employee can range from tens of thousands of dollars to more than twice that amount. When employee turnover is high, it can negatively affect morale, productivity, and your bottom line. So, how can you keep your employees happy and reduce turnover? Here are five ways:
Offer Competitive Compensation and Benefits
If you want to attract and retain top talent, you need to offer competitive compensation and benefits. This doesn’t mean that you have to be the highest bidder; you must be in the ballpark. You can find out what others in your industry offer by conducting surveys or using salary calculators like Payscale.com. Remember that benefits are significant, too. Studies have found that the majority of workers would accept a lower salary if it meant they could get better benefits. However, offering average benefits isn’t enough. It’s always good to give unique benefits such as these:
Dental benefits are crucial for increasing employee retention, as they keep your employees happy and healthy. It’s also great to shoulder some of the costs behind certain dental services. For example, most employees get porcelain veneers at 30 or 40 since it’s a time in their life when their dental health isn’t the most top-notch. But most can’t afford it as it’s a time when they usually start a family. However, by offering this benefit, you can help your employees keep their healthy smiles while also feeling like you’re investing in their long-term well-being.
Paid Time Off
Paid time off is always a perk that employees look for when they’re considering a new job. More than one-third of workers would take a pay cut in exchange for more vacation days. If you want to keep your employees happy, offer them paid time off, and make sure they feel comfortable using it. You can also offer other types of paid leave, such as sabbaticals, paternity, or maternity leave.
Childcare benefits are essential for working mothers. Many mothers say that childcare is their top concern when considering whether to stay at their current job or leave for another one. Offering on-site childcare can help working mothers feel more comfortable about their job and increase employee retention. You can also provide other benefits such as flexible work hours or the ability to work from home.
Commute benefits are another great way to increase employee retention. With gas prices rising, many employees are looking for ways to save money on their commute. You can offer a commuter stipend or subsidize public transportation costs. You can also offer telecommuting options if you have employees who live far away.
Encourage Open Communication
Open communication between employees and management is essential for a happy and productive workplace. Employees should feel like they can come to their managers with concerns or suggestions without fear of reprisal. Managers should also inform employees about changes or developments that may affect them. Try to avoid office gossip; employees won’t be happy at work if they feel like they can’t trust their co-workers.
Offer Opportunities for Training and Development
Employees who feel stuck in a dead-end job are likely to start looking for new opportunities elsewhere. To keep your employees engaged, provide training and development opportunities to gain new skills and advance their careers within your company. You can offer on-the-job training, classroom training, or tuition reimbursement for job-related courses or degrees.
Promote Work/Life Balance
Along with providing competitive compensation and benefits, promoting work/life balance is one of the best ways to increase employee satisfaction and retention. Employees who feel like they have a good work/life balance are less likely to quit because they’re burned out or overworked. You can promote work/life balance by offering flexible work hours, telecommuting options, paid time off, and childcare assistance.
Recognize and Reward Good Work
Everyone likes to feel appreciated, so recognize and reward good work when you see it. Whether it’s a casual “thank you” or a more formal award or bonus, taking the time to show your appreciation will let your employees know that their hard work is noticed and valued—and that will go a long way toward increasing employee satisfaction and retention rates.
As an entrepreneur or business owner, it’s important to do everything you can to increase the employee retention rate in your company. The costs associated with high turnover can be astronomical, so it’s worth taking the time to implement policies and procedures that will keep your employees happy and reduce turnover. By offering the things above, you can create a workplace where employees are likelier to stick around—and that’s good news for your business!