Losing employees is a high cost in business these days. The average price of replacing an employee is equal to one year worth of salary. The fee includes placing ads for a suitable candidate, performing interviews and using recruitment agencies. All of these cost a great deal of time and money. Therefore, it’s prudent to go to great lengths to retain skilled employees.
So in the UK, for example, replacing two employees at the average salary of £32,000 will cost £64,000. This is a considerable expense for any business, and this is for only two employees. And with the average separation rate being around 50%, replacing as a small business with ten employees, you could face costs of approximately £160,000 per year. However, this figure varies from sector to sector, and more professional roles tend to hold more employees than unskilled labour or low paying positions.
Encourage Friendly Competition
A little bit of friendly competition never hurt anybody. In the workplace, competition can encourage your employees to work a little bit harder if they know you will reward them. In most workplaces, employees are naturally competitive since they want to impress bosses and show what they can do. However, it would be best if you did not encourage unfriendly competition where there could be potential increased stress for your staff.
In addition to the competition, any outstanding work undertaken by employees who have delivered admirably could be rewarded with certain gifts. This doesn’t need to be a monetary or a physical gift. Instead, a workplace trophy, medal or valuable customised items from Master Cast could be awarded two weekly or monthly winners or as a lovely gift to keep. But, of course, the financial incentive is a great motivator, and people will work harder if they know they are to be paid more.
Offer Personal Development
No matter how skilled an employee is, they can always benefit from extra tuition or training. Personal development goes a long way in retaining an employee, especially those who have been in a job for a long time in a changing sector. For example, the IT industry is known to change very quickly. Those involved in this sector always need to be aware of technological advancements and industry-wide changes. Additionally, you could offer in-house training for managerial or supervisory roles.
Keep Employees on Track
Further to personal development, some employees need a little guidance at work. Individuals of authority at all levels are responsible for those below them. Therefore, you are responsible for keeping any employees on track to perform their job well. This will help them feel appreciated and keep them on task for future development. This is helpful where they could advance their career. It would help if you always clarified what they need to do and how to do it without using fear of punishment as a motivational tool.
Maintain Competitive Rates of Pay
Today’s world is getting more and more expensive to live in. However, since the financial crash in 2008, wage increases have been few and far between, and then they haven’t been much. Adding to this situation is that inflation rates and wages have not increased equally as they used to do. This means it has become more challenging to maintain a standard living wage, and many people struggle to make ends meet. Therefore, offer the fairest pay possible at every level, or employees will leave for a better-paying company.
Offer Incentives for Good Work
You can’t do this for everybody, but you should reward outstanding work or achievements for specific tasks. For example, you can reward staff with incentives such as financial bonuses, paid days off or Christmas gifts. Incentivised work is trendy throughout many sectors but is prominent in sales, where team members are rewarded for hitting specific goals and targets. You could also praise good work on social media. Incentives are an excellent motivator, and this alone will help keep an employee satisfied and driven.
Identify Employees Whom Will Stay
Many employers don’t realise this, but employee retention essentially starts after the recruitment phase. During recruitment, you should actively engage with potential candidates for a particular role to assess whether they are all likely to stay at your company. You should seek the necessary skills, attitude, and culture for a specific function and analyse applicant information before the interview process. Further, retained employees become more productive over time.
Adapt to a Changing Situation
If the last two years have proved anything, it is that things can change drastically, and unforeseen circumstances can impact your business at any moment. For example, the Covid-19 pandemic all but shuttered most companies globally. Because of this, companies began offering work from home incentives to keep their staff employed. In situations like this, you should do everything you can to accommodate your employees, or you risk losing them entirely.
Offer Extra Workplace Features
As an employer, you have a particular responsibility to the welfare of your employees. This responsibility extends beyond general health and safety at work and includes mental health, personal medical situations, and extenuating circumstances. Therefore, you could offer free workplace psychological care, provide facilities for childcare and breastfeeding facilities or recreational areas. Recreation with games and relaxation promotes friendly activity and, in turn, production.
Engage with Employees as Much as Possible
One of the simplest things you can do is to engage with your employees because they do not know where they stand with upper management or the supervisors. You don’t need to stand around your employees chatting for hours. However, simple “good morning”, regular reviews and the occasional “well done” or “thank you” are minimal yet compelling methods of making your employees feel engaged and appreciated.
Employee retention can be a complex subject. Many things can affect an employee’s ability to work. I want to stay at your company. Disagreements, not getting along with other employees and feeling unappreciated are among the top reasons for employee loss at a business. Fortunately, there are numerous ways in which you can reward your employees and keep them valuable members of your team.