Regardless of the size of your company, a high turnover rate is bad for business.
First and foremost, hiring replacement workers is costly. Although numbers vary, one Wall Street Journal report found the cost of replacing a departed employee can be as high as double the annual salary for the position.
In addition to the direct financial consequences of high turnover, there’s also the intangible costs such as lower morale and loss of ‘tribal knowledge’ – tricks of the trade that groups of experienced employees share amongst themselves.
Employers can do many things to combat high turnover and most of them don’t cost a lot of implement. Consider the following way to boost your employee retention for 2019.
Offer competitive compensation
This one is a bit of a no-brainer, but it has to be said: You must offer competitive compensation. Too may employers make the mistake of thinking their employees ‘are lucky to have a job here’, and as a result they don’t offer competitive pay.
It also should be said that competitive compensation isn’t the end-all, be-all of employee retention. People might take a job for more money, but they often don’t stick around simply for the paycheck.
Focus on making the right hire
Employee retention starts from the jump. If you don’t hire the right people for the right position, you make keeping them around a lot more difficult.
However, there is often pressure to fill a position as soon as possible, and when this happens, hiring managers are more likely to hire those that make the best first impression. These hires might look good on paper, but they can backfire if they have been carefully screened. For instance, someone who seems perfectly-qualified would be a bad hire if their top priority is moving up the company ladder as soon as possible.
It’s critical to interview and screen applicants carefully. Hiring managers should check to see that they not only have the right skills, but also have the right expectations for the job and culture fit.
Hold quarterly reviews, not annual reviews
Quarterly performance reviews can be a valuable tool for employee retention. These one-on-one conversations give you the chance to set goals and outline the way you want these goals to be accomplished. This conversation should be a two-way street and include a discussion on what is to accomplish these goals. Remember, this is ought to be a discussion and not a lecture.
Recognize important contributions
If you want to retain employees, you must acknowledge the achievements of your staff members. Recognition might be as simple as a “thank you” or note of gratitude. While giving out bonuses for a job well done is also a tried-and-true approach, there are also low-cost ways of acknowledging good work, such as delegating important responsibilities or sending them to represent your company at an industry conference.
Are you hiring?
At Quanta, we fully support all of the employee retention efforts of our clients. If your company is currently looking for an engaged staffing partner, please contact us today.