Developing A Quality Employee Retention Strategy
Hiring the right employees is just the first step in creating the strong work force you desire. Next, you have to keep them. Employee turnover can be costly to a business in the form of time and productivity. Thus, not having a strategy for employee retention can be a burdensome oversight. By failing to focus on employee retention, business owners and managers may be setting themselves up for failure.
Most business owners and managers think retention comes down to compensation issues, when, in reality, employees tend to leave for factors far less tangible than money. In fact, compensation may not factor into why your employees want to leave at all. All employees want to feel successful, secure, and appreciated, and if your company is reactive instead of proactive in dealing with retention, you may be fixing a short-term problem while creating a long-term issue.
Instead of being reactive, a better approach is to address retention as a strategic issue. Let’s take a look at three areas of focus to improve employee retention in your business.
Value employee performance
Employees will go the extra mile if they feel their work is contributing to the overall success of the business. When people feel their actions are providing positive results for a business, they begin to develop a sense of belonging and a feeling that your company is their company. The process of achieving goals can bring about a great deal of happiness in people. Thus, setting clear, achievable objectives that gauge personal, team and company performance provides the feedback employees need to understand their contributions to accomplishing goals. By listening and communicating with employees you not only give them a sense of value, you will learn what their personal and professional goals are as well.
Invest in employees
By hiring employees you’ve made a financial investment in them and your company. Now the focus should shift to a personal investment in the form of professional growth for employees. By creating a system of coaching and mentoring you are providing new employees a base from which professional growth can occur. This system, integrated with a goal-oriented feedback system, provides a structured mechanism for developing relationships within an organization and is a solid foundation for retention and growth. Investing in your employees’ professional growth not only creates loyalty, but, in doing so, you are building a culture that is conducive to attracting and keeping good employees.
Provide more than just perks
Sure, unlimited coffee and snacks in the office are nice and can lead to a small increase in employee happiness, but those aren’t going to keep employees around for the long haul. The occasional outing may not be enough either. In order to keep employees long term, they need to feel they can grow and make a difference in a company. By providing real growth opportunities, you are demonstrating trust and confidence in an employee’s ability to contribute and grow in your company. By talking to and actively listening to your employees you’ll learn what makes them happy and productive, allowing you to make changes based on this information.
By now you’ve probably noticed that all of these tips revolve around company culture. By investing in building a strong corporate culture that values and supports employees, you are taking on the issue of employee retention head on.
If you would like to discuss more strategies to address the issue of employee retention, contact me for a free business strategy session.