High turnover represents an unnecessary cost. With the right retention policies, you can keep your best talent in place. You’ll save money and get more out of your limited resources.
But how can you make that happen? Keeping your employees happy requires foresight and a holistic approach.
These investments pay off in the long run, though. The high cost of turnover makes retention an essential aspect of any team-building strategy.
One study suggested that the costs of replacing a worker runs about 33% of that employee’s annual salary. That equates to about $15,000 on average. But the dollar value only represents a portion of the true cost.
High turnover can impact your business in other ways:
- Limited output
- Reduced morale
- Lost institutional memory
- Slowed momentum on long-term projects
Given these consequences, it’s important to limit your retention rates. Here are a few employee retention tips to keep your turnover under control:
Keep Your Compensation Competitive
Tired of having your best workers stolen by the competition? Make sure you’re paying a market rate for their services.
An important note here: a competitive compensation package represents a moving target. What passed as adequate pay not too long ago could become unacceptable very quickly. Meanwhile, a good salary level could look paltry if economic conditions change.
Factors like inflation, labor-market dynamics, and industry conditions could alter the definition of “good compensation.” For that reason, you need to review your policies regularly.
Also, don’t just look at salaries. Consider bonuses and benefits as well. You could win the battle on base pay, but lose a good employee over something as simple as a dental plan or a vacation policy.
Invest in Culture
Foster a corporate culture that will encourage your employees to stay for the long haul. You can gain that by implementing worker-friendly policies:
- Ask for worker feedback
- Promote diversity
- Offer flexible schedules
- Encourage a healthy work/life balance
- Promote from within
- Provide ongoing training or educational opportunities
Strengthen Your Onboarding and Training Programs
Build a connection with your employees as soon as they join your organization. A comprehensive training program will provide a good basis for further growth.
At the same time, review your onboarding procedures. These can leave a permanent impression on your new employee. They represent an introduction to the HR department and to the corporate culture in general.
Make sure you make a welcoming and confidence-inspiring first impression. Here are a few potential steps you can consider:
- Have an organized onboarding plan
- Introduce your new employee to their coworkers
- Assign a veteran mentor
- Have their supervisor take them out for lunch
- Create a process for sparking two-way communication
- Provide constructive feedback early and often
Get Better at Hiring
Have a problem with retention? Maybe you aren’t hiring the right team members in the first place.
Finding a perfect fit with your organization lets you keep workers for the long term. This can represent a complicated process. It helps to have expert advice.
A top staffing agency, like PrideStaff, gives you the tools and support you need to maximize your recruiting efforts. You’ll find the ideal match for each open position.
Contact PrideStaff Bend today to upgrade your talent search.