It’s no secret that retaining employees is essential to the success of any business. It’s estimated that one in four employees left their jobs last year amidst the pandemic. That’s above average, but experts believe it will be the norm in the future.
Employee turnover is a serious concern for many businesses, primarily because it’s expensive. For example, the Society for Human Resource Management found that businesses spend an average of $1,500 per employee annually on turnover-related costs. This number includes everything from lost productivity to recruiting and training expenses.
If you want to retain more employees, it’s time for you to get creative. You can start by being a good boss.
Be a Good Boss
Here’s the reality: more than 70% of employees consider leaving their job because of a bad boss. It shouldn’t come as a surprise, then, that being a good boss is one of the best ways to retain employees.
What does it mean to be a good boss? First, it means being someone supportive, communicative, and fair. It means creating a work environment where employees feel valued and appreciated. Finally, it means setting clear expectations and providing feedback.
Additionally, a good boss is someone that leads and not delegates. Delegating everything is a surefire way to create a toxic work environment where employees feel micromanaged. Communication also means a lot for some employees, and the simple act of communicating can come a long way.
Invest in Employee Development
Employees want to feel like they’re growing in their roles. They want to feel like they’re learning new things and developing their skills. If they don’t feel like doing this, they’ll start looking for opportunities elsewhere. So it’s even more essential for millennial workers.
You can prevent this by investing in employee development. This can take many different forms, such as:
- Offering training courses and workshops
- reimbursing employees for taking classes outside of work
- Assigning mentors
- Rotating job duties
- Providing opportunities for professional growth
Another way you can invest in employee development is by doing coaching. Coaching is different from mentorship because it’s more hands-on. With coaching, you provide employees with the tools and resources they need to grow in their roles. You also give them feedback and guidance along the way.
The bottom line is that if you want to retain your employees, you must invest in their development.
Compensation Matters – But It’s Not Everything
It’s no secret that compensation matters. Naturally, employees want to be compensated fairly for their work. However, compensation is not the only thing that matters. A study by Glassdoor found that only 19% of employees would leave their job solely for more money.
This doesn’t mean that you should skimp on compensation, though. Instead, you need to make sure that you’re paying employees competitively. The best way to do this is to conduct regular salary audits. This will help you to identify any areas where you may be falling behind.
You should also remember that there are other forms of compensation, such as bonuses and benefits.
Most employees find benefits more valuable than a pay raise. This is especially true for millennials, who place a high value on work-life balance.
However, traditional benefits don’t work anymore. Instead, it’s all about the add-ons that come alongside them. Let’s discuss health insurance, for example.
Health insurance covers the basics, but it doesn’t cover everything. So employees are looking for health insurance that covers things like dental health.
Dental health is essential for aging employees who start to lose their teeth by their 30s or 40s. Dental implants are a crucial dental cosmetic procedure for them. Although most of them can afford it by this point, offering to pay for it can significantly affect their job satisfaction. It’s just one example of how you can make your benefits more creative and attractive to certain employees.
Work-Life Balance Matters
The modern workplace is increasingly demanding. Thanks to technology, employees are expected to be available at all hours of the day. It can lead to burnout, one of the leading causes of employee turnover.
You can combat this by promoting a healthy work-life balance. This means encouraging employees to take time off when needed and setting clear boundaries between work and personal time. You should also provide flexible work options, such as working from home or flexible hours.
These are just a few things you can do to increase employee retention in your business. By taking these steps, you’ll create a more positive work environment and reduce turnover.
Employee retention is essential for any business. By following the tips above, you can retain more of your employees in no time. It’s also likely that your business will receive a spike in job satisfaction as more employees feel supported in their roles. Consider implementing these tips today to see the positive impact on your business.