In the years since the economic recession, there have been steady and substantial turnarounds that have enacted changes in many aspects of the business.
Equally important is the growing importance of building healthy employee retention. Companies are re-examining ways to minimize expenses without compromising business integrity, and this has become an inevitable (and necessary) highlight in the area of employee costs. Employee turnover is always an important factor, and rates between 30-40% is not uncommon in a number of industries, and the average cost of losing an employee can exceed their annual salary by but 1.5 to 2 times.
Many businesses in the past have tried to reduce turnover by considering high levels of potential, and compensated by allowing shorter hiring and training periods, but these techniques did little to increase morale or limit high turnover rates. As it stands, the average cost of losing an employee ranges between 1.5 and 2 times their annual salary.
Understanding Employee Retention
Retention basically means that, over time, as an employee becomes more comfortable with the job function, operations and staff interactions, periods of company “investment” in individuals (interviews, hiring, training, and subsequent periods of slightly decreased productivity) give the road to a “return” period, during which an employee achieves and maintains a satisfactory level of productivity. (In this sense, employees “value assets.”) Ideally, the “investment” period should be minimized to ensure greater returns. Retention is achieved by achieving a healthy balance between employee compensation and incentives, a healthy/productive job and environment, and most importantly, establishing strong communication.
Communicate Smarter
The key element that helps foster a good work environment and contributes to retention is communication. Encouraging employees to share personal observations and work-related concerns in addition to feedback on assignments or assignments can help measure both performance and morale, and meet with employees regularly (weekly or semi-weekly) as opposed to just touching base in case of mistakes, problem or crisis presents communication as a tool rather than disciplinary action or duty. When the weekly communication has increased, Create an employee rewards program that rewards your employees to be vocal about their work and achieving goals.
Additionally, keeping the dialogue informal and eliminating keywords can make employees feel more comfortable communicating, and conducting exit interviews is a great way to gain insight into which aspects of the workplace and/or company would benefit from an upgrade.
Well Oiled Machine
Driving retention is a multi-faceted effort that begins with the interview process. Briefly advertising job opportunities and offering details regarding job functions and demands can keep turnover low. Another by-product of the recession is a young workforce seeking growth potential. Instead of simply looking for a “job,” employees are preparing for careers, and companies are looking to a shift to younger management that represents real growth potential for candidates. Combined with regular and in-depth communications, a thorough interview process, including exit interviewscan increase retention significantly and contribute to a thriving business.
