Employee turnover can be a big cost for any business. Research shows that thousands of dollars are at risk when they lose a valuable employee. It’s not just the cost of recruiting it’s also the lost productivity as the new employee gets up to speed and fill the shoes of the previous employee.
Avoiding turnover is especially critical for small businesses. The labour market is becoming more competitive as the economy recovers. Talented employees won’t stay with your business for very long if they aren’t happy. Here are a few ways to improve retention.
- Hire right: Experts suggest that hiring the right people in the first place is the best thing you can do. Look for employees who have stayed at their previous jobs for a long time and make sure candidates are a good fit for your company’s culture. Try to bring on someone whose career path aligns with your vision and goals.
- Take feedback seriously: One thing that employees are concerned about is when they are not listened to. Provide multiple avenues for employees to provide constructive feedback about how the business could be better conducted. Hold an open meeting to encourage employees to ask questions or make suggestions is one way to accomplish this. It’s often said that employees don’t quit their jobs; they quit their bosses. Listening to your staff pays high dividends back to you.
- Address employee concerns: Once you’ve discussed what your employees want you to improve, then it’s time to act. It might be adding a coffee maker to the break room or a more complex in reviewing your overall strategy. The key point is responding effectively to feedback is key to making your employees feel valued.
- Be aware of the competition: Be aware of what your competition is doing. Are they paying better? Do they offer better benefits or working conditions? If they do, consider ways you could improve compensation. This goes beyond salary. Improving health care or offering flexible work schedules are other items employees are seeking.
- Offer professional development: Another top concern is that their employers aren’t offering enough ways for them to improve or learn new skills. Consider having your staff attend webinars or even a professional conference to learn about new techniques in your field. An inexpensive way to help employees grow is to start in-house mentorships. Whatever you choose to do, supporting your employees on their career path is essential to maintain employee satisfaction.
The team at Accounting 360 Solutions can help with staffing concerns. Contact us for a free consultation and see how this can improve your bottom line.
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