Employee retention can be a touchy subject for some companies, especially during an onboarding period. According to the Society for Human Resource Management, nearly one-third of new hires quit their job after being with a company for only six months. But turnover is a problem that affects businesses beyond this time period too. Not only does it financially impact an organization, it can damage the work environment and overall customer satisfaction as well, according to Ben Peterson, CEO of an HR technology company.
"Replacing talent runs as high as two times annual salary," he told SHRM. "And it's not just about dollars. Culture and job satisfaction is hugely impacted, as well as morale, productivity, lost insider knowledge. It's painful to lose people."
If employee turnover is currently hurting your company's bottom line, or you want to avoid its chance of happening in the first place, consider our tips:
1. Reconsider your interview process
You may have the mindset to power through the interview process and hire new employees quickly to make up for lost resources, but make sure you take your time. Beyond checking for skills and experience, The Wall Street Journal suggested getting to know potential candidates well enough to know if they'll fit in with the company culture. This can save you time and effort if they leave because they didn't feel comfortable.
2. Think about the benefits you offer
Do you currently offer any bonuses for hard-working employees? Are your staff members allowed to work from home? What does your company currently offer for health and dental insurance? Back up your business plan with benefits that will give your employees an incentive to stick around.
3. Maintain a work-life balance business model
Being in prime physical health is critical for your employees, but their mental state of well-being is just as important. Make certain you're honoring a work-life balance business model to keep your staff members happy and less anxious. Talent Culture also recommended checking in with your employees often if they seem drained, irritable or annoyed by the projects they're working on. Showing compassion builds bonds and can strengthen a relationship that keeps employees around.
4. Set clear goals and avoid surprises
Avoid keeping your employees in the dark and don't surprise them with a new project out of the blue, as suggested by The Huffington Post. Instead, set clear goals at the beginning of the month and stick to them. If you throw a random new task at your staff members as the month comes to a close, they may feel too overwhelmed to complete the project. Or, they may feel as though they have no choice but to complete it outside of business hours, which can throw off the work-life balance you're trying to encourage.
"Show employees their worth by recognizing hard work."
5. Recognize hard work
Give your employees a boost of confidence and show them their worth by recognizing hard work. This doesn't necessarily have to be through a monetary prize or gift - even a simple vocal praise can work wonders for someone's mentality and work ethic. This is a simple way to maintain a positive work environment that people enjoy diving into each day.
6. Get to know your employees on a new level
Understand your employee's background and where they see themselves in the future. Not only does this show that you care, but it also gives them a chance to connect with you on a different level. Don't feel pressured to make close friends out of each individual, as suggested by Inc. Magazine, but make an effort to get to know them beyond the working world.
Gives these suggestions a try from the time you're onboarding employees and beyond to create a happy workplace.