Posted by Robert Half on Wednesday, September 10, 2014 - 00:00 | Follow me
Do you know what it costs to replace a worker if he walked out the door today? Some estimates run as high as 150 percent of the annual salary, but there are lots of hidden costs, too.
No wonder employee retention is the top concern of many executives. Yes, providing competitive compensation is one way to keep your employees happy. But it’s not the only strategy. Here are nine low-cost ways to keep employee retention high.
1. Maintain an open-door policy.
Your employees should feel comfortable voicing their ideas and concerns. Build strong working relationships with your team by giving them a voice. Wibbitz employees have a say in almost everything, creating a sense of ownership and responsibility. Also, provide and ask for regular feedback. All HubSpot employees get a monthly opportunity to ask questions of company leaders.
2. Promote from within.
Your employees will feel discouraged if they sense they’ll be sitting in their current cubicle forever. If you want employees to invest in the business, then invest in them, too. At The Muse, managers consider how new employees will fit into the business structure and whether they can be groomed for future management positions.
3. Encourage passion about your brand.
You don’t have to give employee retention a second thought if your employees are passionate about what they do. Encourage them to live the brand to remind them why they work for your company and so they can share their enthusiasm with potential customers. Plated employees get four free plates of food a week so that they know their products and can make informed decisions and recommendations.
4. Emphasize health and wellness.
Numerous studies show the link between wellness programs and higher employee retention rates. Remember that both physical and mental health are important. Employees at imo stay active on their treadmill desks. Managers at The Muse encourage their employees to shut down their computers and smartphones and take a lunch break or even vacation days when showing signs of burnout.
5. Recognize outstanding work.
Place an article in the company newsletter or a note on a bulletin board in the office. Say thank you. Praise an employee for his good work in front of his peers. You don’t have to spend a dime to reward hardworking employees for their actions and achievements.
6. Create a pep squad.
It’s understandable that because you stay busy with day-to-day work, making sure employees are engaged rarely finds its way onto your to-do list. No worries. Delegate! Appoint a team of employees to head up fun activities. The spirit committee at M Booth encourages friendship and creativity among employees and helps create a lighthearted atmosphere.
7. Offer professional development opportunities.
Training programs are an employee retention strategy that pays off big time. Your employees benefit by expanding their skills. You benefit by getting a more productive and versatile workforce. Everyone wins.
8. Have a mission.
Do you have any Millennials on staff? Workers among this generation in particular want to be part of a cause that matters. Even if you aren’t Habitat for Humanity, you can weave charity into your business plan. Chalkfly donates to education, while Greatist promotes a unique perspective on personal health.
9. Recognize that perks don’t equal culture.
Employees like perks: free lunches, free health insurance and flexible hours. But don’t confuse perks with culture, which is the personality of your business. Companies with cultures that truly value their employees are most successful at retaining them.
What do you think most affects employee retention? Let us know in the comments section.