It’s a fact, staff turnover costs your business financially and the recruitment process can be an additional load that you simply don’t need. There are trackable expenses such as recruitment and advertising but there are many intangible costs that are not so easy to determine. Lost productivity is an obvious one but it isn’t just limited to lost output when a role is not back-filled before your incumbent departs – it’s also the efficiency of a new employee who won’t be as quick as the experienced team member they replace. And don’t forget the reallocation of time and attention that impacts you or your staff that are involved in the recruitment, onboarding and training a new team member. And for some businesses, these costs are just the tip of the iceberg when it comes to staff turnover.
There is no real way to avoid people leaving a company but working on your retention and looking after the people that help make your business a success, can help you reduce the number of departures and minimise these overheads whilst further enhancing a positive, engaged team with increased productivity as a result. To that end, we have seven quick tips to help you build an employee retention strategy that delivers results.
7 TIPS TO IMPROVING EMPLOYEE RETENTION
1. Recruit Right
Recruiting the right person in the first instance sounds like we are stating the obvious but it’s not always as simple as it seems. When you need to go out to market, make sure you have your ducks in a row BEFORE you advertise. Is this the time to look for a candidate with a greater skill base or do you want to reduce the role, is it full time, part time or casual and are you looking for a particular level of experience or education. Do you want to replicate the person departing or is this an opportunity to revise the role or even the company structure and is there someone internal that deserves the chance to be promoted? And then there are the company culture and value considerations – if you get these wrong, you can upset the apple cart completely and you may end up with a major morale issue in your team that will only increase your turnover and associated costs. There is a lot to think about and if budget allows, it may well be worth considering looking at options such as HR Staff n’ Stuff’s recruitment options (Link to recruitment) to alleviate the pressure.
2. Offer flexibility
Workplace flexibility is a hot topic and it’s a highly prized option for candidates in today’s job market. Office work that isn’t client based may mean you can easily offer working from home or flexible start and finish times. However, a manufacturing business that requires staff to be present whilst machines are operating won’t be able to utilise these options. But there are other flexible arrangements you can consider. There’s rostered time off, flexible rostering, job sharing or maybe even allowing your employees to purchase additional leave. Legislation exists around requests for workplace flexibility so ensure you are across this when considering requests from an employee whilst also being mindful of the needs of your business. (Link to Flexible work arrangements blog)
3. Deliver on training
Imagine doing the same thing, day in and day out for weeks, months, years. Imagine never having the opportunity to update or learn new skills. Imagine how disengaged and bored you would be. So, promise training and then make sure you deliver it – internal and external courses, shadowing, inter-company role swaps – just make sure you plan it and make it happen. You will develop a highly engaged and motivated team that can only drive positive outcomes for your business while reducing staff churn.
4. Listen to hear
Your employees can be your greatest advantage when it comes to understanding what’s going right and what’s going wrong. They can deliver incredible ideas that provide new business opportunities and growth and they will know why you are seeing an increase in staff turnover or poor results – you just need to give them a chance to be heard. Listening to hear is an incredibly powerful tool that great leaders know how to use.
5. Communicate – not just talking
Improving how and what you communicate to your team can drive improved performance, engagement, company pride and the list goes on. Share information about the direction of your business, the goals and timings you have planned, and the results achieved. This will encourage your employees to take ownership of the success of the business as well and drive engagement and assist in improving retention. Don’t just talk at your people, allow feedback either directly or in the form of a suggestion box, staff meetings or employee satisfaction surveys. You might be surprised with what you learn! (Link to communication blog)
6. Recognise and reward
This does not have to be expensive – you need to manage this in a sustainable manner as dictated by your business. It can be as simple as publicly acknowledging (link to 10 Tips of positive recognition blog) the success of a team or individual on a particular project, a small gift voucher as a means of thanks for extra effort or you can consider including financial rewards based on profit sharing or bonuses. There are many different ways to reward and recognise your team – just make sure it is genuine and appropriate as well as affordable within the context of your business. Ultimately, your employees are remunerated for the work they do but sometimes people need to feel appreciated and a simple thank you can be very powerful. Remember to celebrate the wins! (link to reward blog)
7. Help your team to kick goals
Setting career goals and KPIs may seem tedious but showing your team you are serious about helping them achieve set objectives will show you have a vested interest in their success and provide them with further evidence that they are valued and integral to your business and that is a compelling reason for them to stay with your company.
Get out in front and entrench some or all of these tips into your business planning and leadership style and you will reduce staff turnover while you build a team of loyal, skilled and engaged employees. If you need assistance in preparing strategies from any of these recommendations, call the team at HR Staff n’ Stuff and we can help!
The HR Staff n' Stuff team all contribute to our blogs. Enjoy the read!