Employee retention is defined as a company’s ability to keep or retain their employees. Companies can expect some of their workers to quit, but having a significant percentage of employees walk away is a troubling sign that ultimately hurts the company as a whole. No matter what industry or line of work your company is built around, it’s important to understand the fundamentals of employee retention.
Importance of High Employee Retention
High employee retention is important for a number of different reasons. For starters, each time an employee quits, the company is forced to spend additional time, money and resources to find a replacement. Training programs aren’t cheap by any means, and the high cost of training new employees for certain positions can place an unnecessary financial burden on the company.
The application and interview process also costs both time and money. Nine out of ten times, it’s either a manager or executive performing these interviews; therefore, they are using their valuable time trying to find a replacement. Each time an employee quits, the company must allocate some of their executives’ resources into finding a replacement. This is why smart companies want to retain their employees rather than find new ones.
Tips For Retaining Employees
So, what can companies do to retain their employees? Running a successful company requires strong teamwork and recognition of their efforts, and this is something you should stress to your employees. Each and every worker should feel needed in their current position. Whether it’s sales, customer service, logistics or any other position, you should stress the importance of their job. Employees who no longer feel needed are more likely to look for jobs elsewhere.
Does your company have a good recognition program in place? If not, you should definitely consider creating one. Some workers specifically look for companies and jobs with where employers go above and beyond by making a point to acknowledge your hard work and achievements which in turn motivates the employee to set the bar high. By not having one in place, you run the risk of losing some of your employees.
Employee motivation is a key step in retaining employees. Keeping your employees happy and motivated will give them the emotional boost of confidence to continue performing their duties at work.
Here are some simple ways to motivate your employees:
- Hand out awards and/or trophies to employees who meet certain criteria.
- Throw company lunches and dinners.
- Send out holiday gifts.
- Take company trips.
- Verbally acknowledge your employees for their hard work and dedication, but follow-up with a custom gift for the wall or desk which will be a continual reminder of their achievements.