A Guide to Employee Retention
You’ve likely heard people talking about jobs and refer to them as “high turnover” jobs. This usually means that they are less desirable jobs and that the employee retention rate is low. So, what makes a job “high turnover” and how do you avoid that in your own business? Businesses that have a hard time retaining their employees usually have a reputation for paying low wages, a lack of new opportunities, or undefined expectations.
While there are jobs that require minimal skill and don’t demand enough to pay more than minimum wage, employees like to know that they are valuable to the company and appreciate monetary or other forms of recognition. If an employee has been part of your business for a year and you would like to keep them around, a small raise may be in order. After all, your current employee has already gone through the training process, they likely know how to do their job, and your customers are familiar with their face. Keeping employees that your customers are familiar with actually increases customer loyalty and sales. By giving your employee a raise, you can save yourself time because you don’t have hire or train a new employee and you will likely make more money off of your loyal customers. Employee retention equals customer retention.
Lack of New Opportunities
If you have an employee who is worth keeping, they likely have goals for themselves and a desire to move up in the business. If they can see that there is nowhere for them to move in your business, they are more likely to move on. If you want to keep your valuable employees, you need to make room for them to move up and progress.
An employee who doesn’t know exactly what their job is may feel frustrated and unsure of themselves. This can lead to dissatisfaction and a change of employment. In order to increase employee retention, a set of clearly defined rules may be helpful. For example, a handbook that outlines the expectations for each employee as well as weekly or monthly training can be helpful. Training create an opportunity to point out areas that need improvement as well as areas the employees are excelling in can provide useful information as well as motivation to be a better employee.
Employees who feel valued and competent in their jobs are more likely to stick around. In order to increase employee retention focus on helping your employees understand what is expected, appreciate their good qualities and hard work and provide opportunities for growth.