The cost of turnover can be attributed to several things, including a drop in productivity, hiring and training costs, and the knowledge gap you'll face with your new employee.
Fortunately, these six steps can help you and your company hang on to quality employees.
Clearly defined job description and goals: If your employees don't fully understand their role, it can be difficult for them and leave them discouraged. First, write clear job descriptions. To get started, check out sba.gov for a number of resources to help. And remember to set clear goals you can then use to have a meaningful performance evaluation.
Training and continued education: Whether it's providing in-house training, sending your employees to a class or workshop to learn new job-related skills, or providing tuition reimbursement, helping employees learn something new is a benefit to everyone. Their increased skill set adds to your bottom line and shows them you value their contributions and believe in their talents.
Advancement: When employees see they have an opportunity to advance their careers, they're more likely to stay. Showing that hard work pays off with a promotion can motivate your employees to do their best work. According to a study from The Wall Street Journal, promoting from within can also save you some money; the study found businesses pay external hires 18 to 20 percent more, but those hires get lower marks on performance reviews.
Recognition: A simple thank you can go a very long way. According to a survey by Office Team®, more than 50 percent of workers would be very likely or somewhat likely to leave their current position if they didn't feel appreciated by their manager. From a verbal thank you to an employee of the month program, praise your high performers.
Two-way dialogue: Consistently keeping employees in the loop will help them feel a stronger connection to your company, as well as foster a sense of commitment to and pride in the work you do. To ensure two-way communication, consider scheduling regular one-on-one meetings with your team to find out how satisfied they are, what they feel they can improve upon and what might encourage them to stay with your company.
Salary and benefits: Offering a competitive salary and benefits package will help you attract and retain employees. There are also many other things you can do that may fit within your budget, like offering flexible hours, telecommuting, casual Fridays and paid volunteer days. Get creative -- your employees will appreciate it.
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