According to some shocking employee turnover statistics by Reflektive, turnover can cost a business between 16% and 213% of the salary of a lost employee. Higher positions, which are highly paid, lead to higher turnover costs.
Replacing an employee that had a linchpin position in your company can cost you more than a double of their salary. For instance, if you lose a highly-trained employee who was making $250000 on an annual basis, replacing them could cost you as much as $532500.
There are numerous reasons why employee turnover is so costly, but your number one priority should always be to reduce it or prevent it completely.
It actually doesn’t matter whether you’re a woman entrepreneur, or you’re in the majority of male business owners. The following tricks for better employee retention will work for you either way, but you’ll definitely be able to apply some of them much easier as a woman.
Motivate Your Employees with Compelling Incentives
Offering incentives to all your employees will keep them motivated at all times. They’ll know that their hard work will always get rewarded, so they’ll find it much easier to invest more effort into their daily tasks.
They’ll even go beyond what you expect of them to show you that they truly deserve the rewards, and they’ll be inspired to continue doing so as long as you always recognize their efforts.
So, help them get that important feeling of accomplishment by offering paid time off, holiday pay, giving them freebies and gift certificates, and giving them end-year bonuses and bonuses for successfully completed projects. Monetary incentives are definitely the best motivation.
Additionally, you can even take them out for lunch or dinner every once in a while, as you’ll create a friendly relationship with each of them. This can be only one of the numerous team-building activities that your employees will absolutely love.
Always Promote from Within First
Looking outside your company for new talent is often unavoidable, especially if you want to grow your small business. However, searching outside before even considering someone from your workforce can frustrate your employees and eventually make them want to leave your company.
If there’s no chance for advancement in your organization, why would anyone stay? Promoting from within before you start searching for outside candidates is one of the best employee retention strategies you should use.
It will keep your employees motivated because they’ll know that each of them has a chance to be promoted to a higher position.
This also saves you time and money that you would otherwise invest in onboarding and training new hires. It also works in favor of your sales increase and ROI, simply because everyone will work much harder to get the promotion they desire.
Establish Effective Communication
Effective communication is key to developing strong relationships with your employees and making them want to stay in your company. You should have an open-door policy, and establish a friendly relationship with each worker.
Maintain a balance between being friendly and professional, but still show them that you care about them. Let them know you’re interested in their well-being, and their needs and goals, and be there to help them solve any potential problem they may have.
Open communication is vital for motivation, improving job satisfaction, and eventually growing your business.
Encourage Honest Feedback and Actively Listen to Your Employees
Honest feedback is also essential for building a great company culture and establishing a pleasant and effective work environment. Encourage your employees to always give you honest feedback, because that’s precisely what will help you in being more objective and create an enjoyable work atmosphere.
For instance, if the majority of your employees are asking you for more flexibility in schedule, accommodating their requests will definitely go a long way. They’ll be more satisfied with their jobs, so they won’t start looking for outside opportunities.
Actively listen to all your workers to try and meet all their needs. Show that you truly care, and it will pay off a hundredfold.
Make Room for Growth and Development
Just like you should make room for promotion within your workforce, you should also create valuable learning opportunities. They are some of the most crucial factors for employee retention.
According to report by Gallup, 56% of employees are somewhat disengaged, while 73% are actively disengaged, and all of them are actively looking for a different job.
They want to be connected to their jobs, to actively learn and grow, but their employees don’t offer them any learning and growing opportunities.
If you don’t want to lose your employees, offer them a chance to grow. Provide them with regular training to improve their skills, and offer various education courses they can take anytime and anywhere.
Online exam software can help you make a quiz for testing your employees’ knowledge and keeping track of their learning progress. It can help you identify their strengths and weaknesses so that you can train them more effectively and help them truly develop and grow.
The more you work on their development, the more you’ll boost their morale and make them want to stay and grow right where they are.
As you can see, improving employee retention isn’t as difficult as it may seem. It does take effort, but it’s more than worth it.
So, start offering enticing incentives to keep your employees motivated, and make sure your communication with them is always open and honest. Encourage their honest feedback, really listen to what they have to say, and show them that you care and you’re always there for them.
Most importantly, promote from within before searching for outside candidates, and create learning opportunities that will help your employees grow. Do all this and you’ll create a pleasant work environment that your employees will be proud of.
Author’s Bio: Kamy Anderson is an ed-tech enthusiast with a passion for writing for the consumer market in the areas of product research and marketing using quizzes and surveys. Having a knack for writing and an editorial mind-set. He is an expert researcher at a brand that’s known for creating delightfully smart tools such as ProProfs Quiz Maker