Q: We’ve seen a lot of turnover lately. Do you have any tips for increasing retention?
A: Employee retention is one of the most difficult and expensive challenges faced by business owners, managers, and HR departments. Fortunately, the keys to retention are simple and straightforward, though certainly easier said than done. The following three practices are essential:
- Pick the right people in the first place. Put thought and care into your recruitment and interview procedures. The more time you and other employees can spend with candidates, the surer you’ll be that they believe in your mission, understand the challenges and frustrations of the position, and want to contribute to your success.
- Make sure your compensation and benefits remain competitive. This is a tall order and may squeeze your bottom line in ways that make you uncomfortable, but it’s necessary if retention is at the top of your priority list. Make it a goal to do a yearly analysis of your total compensation package to ensure that it’s at least keeping up with the market. Many employers who know they can’t offer competitive pay offer other compelling benefits, like generous PTO and the ability to work from home.
- Be appreciative. A little gratitude can go a long way. And you can show it in multiple ways – from flexibility when employees need it, to a willingness to hear out ideas, to employee appreciation programs. Even a simple thank you can work wonders.
Need more guidance? Check out the free Hiring Guide to learn best practices for hiring, on-boarding, and retention.