Retention of good employees is very crucial for the success of any business. Companies put in considerable efforts and expenses to hire these employees, train and induct them so it become equally important that management also maintain good retention practices. We need to understand that people do business with people and when efficient employees leave, it may result in loss of business by way of customers shifting loyalty along with those employees.
Direct losses are caused in term of reduced customer satisfaction, sales and impact on other coworkers. Many studies show that exiting of a trained employee results in losses that may be equal to double their salaries. In today’s competitive environment it is already very difficult to find talented people and when old employee leave it creates a void and if they be senior employee then it disturbs the entire succession plan also.
There may be a variety of reasons that influence the decision of resigning employee. To plug these weaknesses in future it is very much advised that companies conduct extensive exit interviews. Here are some of the ways to increase the retention of key employees:
Pay Them Well
Monetary benefits most of the times rank on the top of the list of reasons why employees quit. Pay them well and at par with the industry standard. Remove the easiest of all the tangible reasons out of way to increase your company’s retention rate. Give them annual increments judiciously. If given a meager increase the employees get demoralized. Beside the salary part create other financial benefits like annual bonuses and incentive for them and link those to performance. For senior employees you may also consider giving them stock options. Think it this way, exit of a good employee causes more financial losses than their salaries.
A great company think more in terms of enabling it’s employees rather than managing them. Give your team best of tools and training at job. When you equip your people well it will have dual benefit of increased job satisfaction and lower instances of employees leaving the company. Arrange for training for a new job skill or for their further education. It creates a sense of responsibility in employees when they see that you are taking all measures to overcome their weaknesses and shortcomings. They feel their worth is increased when they get new skills.
Always seek to use their talent and skills, it will benefit company as well as the employees will feel fulfilled at the job. If they are not given tasks that challenge them at intellectual level then they will get bored and apathy will set in. They will start exploring opportunities that are commensurate to their skill level. Give them the responsibilities that have the capacity to stimulate them. Communicate to them that there are ample growth opportunities within the company and they should keep pushing themselves.
Promotions and Career advancement are critical components of your efforts for employee retention. This motivates the employees as they see the clear growth chances in their own organisation. Wherever possible try that people are promoted from within the company. People selected from outside for higher responsibility are not aware of the company’s work culture and at the same time it may also frustrate your existing employees.
Make Them Feel Appreciated
Apart from monetary benefits, appreciation of their work and contribution towards the company remains most desirable by the employees. One of the most important quality of good leaders is to give the credit to the deserving people. A sure recipe for dissatisfaction among the employee is an unsecured leader who takes all the credit for accomplishments himself while giving little appreciation to the people involved at the ground level. Keep in mind that happy workers are productive workers
Trust is the foundation over which all company relations are based. Leaders should ensure that the employees are trusted fully until there is some definite negative information. On the other side even employees should have complete confidence on the company’s management. When people have complete faith in their managers they will accept healthy criticism if they are wrong and go extra distance to achieve the goals set by company. High level of trust between managers and employees drives the overall company performance.
Clarity Is The Key
One essential requirement of the managers is that they should convey very clearly to the employees what is expected of them. Clear performance metrics should be used so that there is perception of equitable treatment and fairness. Clarity of roles within the team about work responsibility, support staff and benefits will go a long way in reducing wasted efforts in company. Clear communication of the company mission to the employees will ensure that they stay committed and work in line with the company expectation.
Maintain High Quality Of Supervision
It is said that employees don’t leave company, they leave managers. Adequate care is to be taken by the leaders that their employees have complete freedom to express themselves. Communication channel between employees and company should always be open. They should be free to give their inputs or air their grievances in transparent manner. Lot many times misunderstandings are caused simply because the message or expectations are not clearly communicated.
The managers should never threaten job or income of their subordinates rather give them the support and help. A manager who makes his people feel undervalued will cause increased employee turnover. They should have faith on their leader that if there are some challenges, they will be first to face it or at least guide them to handle the situation.
In the end employee retention is as vital as hiring. If you follow these steps you will be able to increase the employee retention rate in your organisation. Keep the atmosphere engaging and stimulating for your employees and they will remain committed and loyal to the company. Employees are the strength of any company, take a careful look at your organisation and ensure that you are doing your best to retain your best talent.
Related article: 3 Qualities of an Effective Manager