While there are several factors that contribute to the success of a business, you could make the argument that employee retention is one of the biggest. That’s because without a solid foundation of knowledgeable, skilled and dedicated employees, it’s difficult to gain any real momentum, and core operations can become shaky. Let’s now discuss some specific reasons why it’s critical to retain your top performers and some strategies for keeping employees satisfied in their positions.
The Importance of Retention
If you find yourself constantly having to replace employees, it can hurt your business in three main ways. First, it can get expensive. In fact, it has been cited that the cost of an employee turning over can cost as much as 150 percent of their annual salary.
Second, finding new employees can be arduous and time-consuming; you or a hiring manager may end up spending hours recruiting, sifting through resumes, interviewing and training. Third, workforce attrition can create a negative working environment and low employee morale. In turn, this can send even more workers running, which results in a vicious cycle.
Effective Strategies for Reducing Turnover
Fortunately, there are many different ways to establish a higher retention rate and keep your top workers happy. For starters, you should set the right expectations right from the get-go with new employees. This means being clear about job duties, compensation and scheduling. That way new hires will know exactly what their position entails, and there shouldn’t be any hidden surprises.
Offering competitive pay and comprehensive benefits can be another way to get your best employees to stay. When they know what they’re being paid at your company rivals that of most competitors and they’re getting the benefits they need (e.g., healthcare and retirement), your employees are less likely to jump ship at the first outside offer that comes along.
Also, it’s important to understand that top performers often enjoy being challenged and seek opportunities for growth. That’s why it’s ideal to encourage employees to step up their game and promote the best of the best.
Finally, it’s crucial that you do everything possible to establish a positive workplace atmosphere and a strong company culture. This can be done by offering adequate break times, flexible scheduling and striving to build authentic relationships with your employees. When you’re able to create team chemistry where everyone feels valued, you can expect more people to stick around for the long haul.
Retaining top talent is important on many levels and should be at the top of all employers’ priority lists. By implementing the right strategies, this should come to fruition, and your turnover rate should be diminished.
For more advice on employee retention and other staffing solutions, check out our blog.