A high employee turnover rate means more costs incurred for rehiring and retraining new recruits, not to mention a more error-prone office due to constant changes in the people who handle the day-to-day tasks. To help you avoid a high employee turnover, here are five management techniques that will keep your employees happy and encourage them to stay for years to come.
Bolster Workplace Security
When employees don't feel that their work environment is safe, they are more likely to entertain the possibility of leaving and taking another job. Secure your workplace by installing commercial-grade security systems including high-resolution cameras and electronic door locks to deter theft and other criminal activities. Use sensors around the building to detect gas leaks and fires early. Regularly practice appropriate safety drills with your employees to prepare them for natural calamities, like earthquakes and floods.
Help Them Improve
An employee will be much less inclined to jump ship if they feel like they are growing as a professional. And although it will cost you money to train and certify them in new skills and specializations, it's a worthwhile investment that can boost employee retention and grow your business faster by equipping the people behind it with more tools to work with. For instance, enrolling your salespeople in an advanced negotiation skills training can teach them better techniques to close deals, which ultimately increase your sales and revenues over time. Employees who feel like they've stagnated are more likely to look for a new job where they can grow as a professional.
Create a Fun Work Environment
This is a particularly common strategy employed by tech startups, such as Google, Amazon, and AirBnB, to encourage their employees to not only stay at the company, but to log longer work hours every week. Because employees have game rooms, mini libraries, nap pods, and other amenities they can enjoy for free, it creates a more fun and relaxing environment. People are bound to go to work every day and are less likely to suffer from burnout. Sure, the upfront costs for setting these facilities up can be significant, but the long-term advantages easily outweigh those initial costs. Besides, you can claim those expenses as a tax deductible since it's being used by your business.
Yes, this sounds ridiculously simple, but it's a gesture that managers and business owners often overlook. Even if they aren't saying it, employees like being praised and complimented when they do good work. It serves as validation that they are doing something right, and it costs you nothing to give them a compliment i.e. "nice job" and "well done". Aside from complementing them, make sure their voices are heard. Listen to their opinions and act on any complaints they have about company policies or security issues. When employees' opinions are heard and respected, they establish a stronger connection with the company and begin to treat it as their own business. They also show a greater sense of pride in their work output.
Promote From Within
Promoting outside hires can be seen as, at the very least, insulting to some of your employees who have been working at your company for years. Aside from negatively impacting workforce morale, hiring outside candidates for managerial positions can be a more expensive business move. As indicated on a report released by the University of Pennsylvania, outside hires cost 20 percent more in salaries and benefits than in-house candidates. The approval ratings for outside hires are also relatively lower.
Giving your employees the skills and resources they need to grow as professionals is the key to optimizing your business' retention rate and, consequently, minimizing turnover. Consistently losing clients is one thing, but consistently losing employees is a financially devastating problem that must be resolved immediately. Use the five management hacks above as a starting point for creating the best work environment for your employees.