As a business owner, the odds are good that you have a million different items on your mind at all times. From marketing to sales to simply making sure everyone gets paid on time—it can be all too easy to let important facets of your business such as employee retention fall to the wayside. As recent studies have confirmed, however, employee retention is undeniably worth investing in—especially when a growing number of businesses now list employee turnover as an important concern. In this article, we’ll discuss 5 reasons why employee retention is important, and then we’ll go over 5 strategies than can help improve employee loyalty.
Why invest in employee retention?
1. Reduce Costs. Plain and simple: the most compelling reason to invest in employee retention is that it can save you a lot of money in the long term. Employee turnover means you have to invest time and money into training new employees. It also means you will have to invest in recruiting new employees—which can eat up valuable advertising dollars.
2. Higher Productivity. Even beyond the initial training period, most people continue to learn and get better at their jobs with time. The longer you retain your employees, the more productive they will tend to become. This means that investing in employee retention is ultimately an investment in productivity as well.
3. Boost Morale. Don’t underestimate the importance of employee morale. Happy employees are far more productive and creative—not to mention far more pleasant to work with! Employee relationships are key to cultivating employee morale, and it’s difficult to cultivate relationships when employees come and go every few months. In order to make sure everyone feels like an important part of a larger “family,” employee retention is critical.
4. More recruiting options. Companies who have high productivity and high employee morale tend to attract potential employees at a much higher rate than companies with high turnover and low employee morale. This means that you will have more recruiting options when it does come time to find new employees—allowing you to hire the best possible talent and build your team even more!
How to improve employee retention:
1. Create an Employee-Friendly Environment. Though salary is important, it is not the only factor that influences employee retention—and many a small business has held onto talented employees even when those employees could have left for better pay at a large corporation. Why? Because many small businesses are experts at creation employee friendly environments. This doesn’t mean creating an environment where employees can do whatever they feel like with no consequences; rather, it means making your company a pleasant place to work. Give your employees the autonomy and responsibility they deserve. Cultivate relationships with (and between) your employees. Allow employees to use their full potential and they will reward you for it.
2. Offer Comprehensive Training. Striving for mutual success is the best way to make sure your employees remain loyal. No one is going to remain with a company that doesn’t allow them to develop and grow professionally. If you have an employee who is looking to self-improve and become a more well-rounded worker, make sure that his or her talent remains a part of your company by offering the training and support that he/she needs!
3. Offer Perks. Now more than ever, employees tend to value “perks” just as much as they value salary. This is good news for employers who are willing to be flexible. By allowing your employees to work from home every now and then, by offering free company lunches on Fridays, or by providing a few extra vacation days than your competitors, you may be able to retain top-level talent that you never thought you could afford.
4. Be Reliable. Last but certainly not least, employees must demonstrate the same level of commitment and reliability that they expect from their employees. This means always making yourself available in order to answer questions or resolve disputes. It means going the extra mile to ensure that all of your employees feel comfortable and productive in their workplace. And it means ensuring that basic functions such as payroll get taken care of with consistency and accuracy. Brands Paycheck and HR Services can help.
Contact us today to learn more about how we can help your company be more professional while taking a considerable workload off of your shoulders—we look forward to working with you!