Six Top Tips to Improve Talent Retention
“A fulfilling job experience is a major part of employee motivation.” – Shep Hyken
It's normally apparent to business owners and managers that a high employee turnover signifies that something isn't quite right. Not only is there an issue at hand to figure out why employees are leaving, but on top of it, you need to find replacements. An exercise that can cost you a lot of money when dealing with lost revenue and recruiter fees. The Society for Human Resources Management estimates that the total cost associated with replacing an employee ranges between 100–300% of the individual’s salary!
Not only that, but the departure of top employees may have a negative impact on the mindsets of the people who remain.
So how can you prevent your top talent from leaving in the first place? Here are some tips that you can put in place to help cultivate the best conditions for healthy staff retention.
- Make sure they're the perfect fit from the get-go
Finding employees that match your company culture is the first step to making sure that they will fit in with your values and expectations in the long term - and vice versa. Your company culture combines your set of values, goals, and attitudes, and the working environment. For instance, maybe hiring someone who prefers a strict by-the-book workplace is not the right fit for a trendy start-up.
- Develop an onboarding strategy
It's all well and good that you've found someone who's the right fit for the company, but that won't matter in the long run if they aren't onboarded effectively. Poorly executed onboarding results in one-third of new employees looking for another job within 6 months of getting hired. If you take the time to train and help new employees settle in faster at the beginning, they'll not only be more productive in a shorter space of time; they'll also be more likely to stay.
- Make training and development a priority
Encouraging and aiding your staff to keep up to date on best practices in their field of work has a two-fold benefit. Your employees will feel valued because you're investing in their personal and professional development, and you can benefit from the new skills that they've learned.
- Be transparent and keep open lines of communication
Businesses run better when employees work together harmoniously. And one way to foster harmony is to ensure that everyone is communicating, starting from the top down. Be transparent with your employees about potential changes they may be facing. Teams that communicate well can adapt to change far quicker than those who don't.
- Provide fair compensation
One of the main reasons employees seeks alternative employment is that they can get a better pay package elsewhere. If you value your employees, make sure that they are getting market-related salaries. Don't wait for them to threaten to leave to counter offer a salary that they should have been getting in the first place.
- Offer perks and benefits
Some elements are part of the pay package, but offering attractive perks and benefits is a major drawcard to employees. To the standard health plans, paid leave and retirement plans, offer flexible working hours (today, an estimated 40% more US employers offer flexible work schedules compared to five years prior — and that estimate is from before the onset of COVID-19); rewards for reaching milestones; gym memberships; team-building days out; surprise gifts… Sometimes simply timely acknowledgement of a job well done can be the difference between a contented and disgruntled employee.
There isn't a once-off plan that you can put into place to ensure your top talent doesn't leave. It's an ongoing, comprehensive process that requires time and commitment. But if you want employees that feel valued and add value to your business in return, it’s well worth the investment.
“A bird in the hand is worth two in the bush.”