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Hiring new employees in today's climate is challenging, as organizations of all sizes offer competitive pay, bonuses, and stock options. Add to the mix perks such as working remotely, free lunches, childcare, and ample personal days, and it is no wonder that workers with sought-after skills don't feel the need to stick around when a job no longer meets their needs. If your organization needs to improve employee retention, consider implementing some proven leadership strategies.
Calculate your retention rate
Understanding how well you retain talent starts with knowing your retention rate. Calculating your retention rate is simple; you can track retention rates by month, quarter, or year. If you begin a quarter with 100 employees and five have left by the end, subtract five from 100. Divide that result by the original number of employees (100), then multiply by 100 to get your employee retention rate. In this example, the rate is 95 percent.
If you decide to track your retention rate quarterly, you can compare your current quarter to past quarters to determine whether or not your retention is improving. You can also track employee retention rates in specific departments within your organization. Paying attention to your retention rates can help you develop strategies for recruiting and hiring the best talent.
Set reasonable expectations
It is common for a leader to be blindsided when that perfect hire decides to leave the company after only a few months. To help prevent this, it is essential to set reasonable expectations and give employees ample opportunities to share concerns and voice grievances without feeling intimidated. A new employee may be innovative, easily handle duties, and be willing to take on extra tasks. However, the manager or team should still refrain from piling on work. Ensure that employees’ job descriptions are focused. The employee who handles anything thrown their way with a smile may not be a happy camper; they might be burning the midnight oil or working under duress to make a good impression while simultaneously looking for a less-stressful gig.
Assign mentors
Mentoring has been proven to increase employee retention. A workplace mentor can serve as a teacher, guide, and trusted person to whom a new employees can turn when they have questions or concerns about the job. A mentor can also help create a welcoming environment for new hires in underrepresented groups.
Be flexible
Some jobs require employees to report to work at a given time and remain until the workday ends. With more companies offering remote working opportunities, many employees are trading long commutes, suits, and traditional offices for the freedom to work from home. Evaluating your positions to determine where you might offer flexibility can pay off when you need to recruit top talent. Many companies have found that allowing employees to work remotely increases revenues and lowers costs. Consider allowing your employees to work remotely at least part of the time to achieve the same outcomes.
Sometimes, you need people to be on the job in person. For instance, if you are a healthcare provider and your staff consists primarily of clinicians who see patients, you cannot run your organization with a remote workforce. However, you should still seek ways to give employees time away from the office to take care of personal appointments and family emergencies without sacrificing their leave time. When offered the opportunity, employees are often willing to cover for one another to ensure the workflow does not suffer, as they know everyone can benefit from the arrangement.
Reward good work
Talented people who know they will be recognized and rewarded for good work tend to be more loyal to their organizations. Pay raises and bonuses are high on the list of rewards, but when you cannot give raises, there are other ways to show your appreciation for standout employees. Budget-friendly rewards that can be given more frequently include gift cards, a monthly or quarterly catered lunch, and an occasional Friday afternoon off. Some businesses are often willing to partner with workplaces to offer deep discounts on services, such as car washes and gym memberships.
Praise costs nothing, but it is important. People like being told they are doing something right, and many appreciate public recognition. Some organizations offer employee retreats, but if you plan a retreat, ensure it does not feel like forced fun. If your employees have to arrange and pay for around-the-clock childcare to participate in a week-long staff retreat, it may not be their idea of a fun getaway.
Most of these strategies cost very little; you need to try them. When implemented successfully, you may find that the word gets around about your company’s culture, allowing your organization to become one that attracts and retains the best talent!
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BBB of Southern Piedmont and Western N.C. contributed this article.