In the modern workplace, it is becoming increasingly common for employees to job-hop. While this fact is true of Millennials, it certainly isn’t a quality that exclusively impacts just them, as workers of all ages are valuing mobility more than stability in the workplace. If you want to hold on to your workers (and not have them jump ship), you need to find out which employee retention strategies can work for you.
The Cost of Losing a Worker
Simply put: employee turnover costs time and money. In order to fully understand the cost of losing an employee, one must look at the entire hiring process from advertising the position, to the staff time needed to sift through resumes and interviews, and then finally, the training of the new employee.
Costs that are frequently overlooked because they are difficult to monetize are the loss of productivity and engagement from existing employees left to pick up the slack. In addition, a new employee is bound to make more mistakes than a seasoned veteran.
Why Employee Retention Matters
According to the Bureau of Labor Statistics, the average employee stays with a company for only 4.6 years. How are you supposed to get anything done when you’re filling a position every few years? Not only is it disruptive, but it decreases morale among your existing employees.
The most important thing to remember here is that happy employees work hard.
Studies have shown that happy employees are about 12% more productive than their disengaged co-workers. Happy salesmen and women report higher sales numbers by about one-third. Happy workers even take ten times less sick days than their unsatisfied counterparts.
Employee Retention Strategies That Can Work For You
The good news is that happy employees stay. There are plenty of ways you can improve your employee retention strategy. Here are a few ideas:
- Give benefits a chance. Most small business owners feel that offering insurance to their employees is impossible, but options like premium reimbursement arrangements can help you stay competitive.
- Read up on some strategies that have proven successful for other companies. Small changes like recognition programs, flex time, and social media shout-outs can have a large impact.
- Consider telecommuting. Employees typically report higher happiness levels when they are able to work from home. They get to skip the commute and you save on rent. It’s a win-win!
- Perform exit interviews. It is important for you to understand why your employees are jumping ship. Encourage them to be honest and to write their thoughts down. This will help you find patterns over time.
It may seem discouraging to read that employees aren’t sticking around for long, but adopting proactive employee retention strategies can make a large difference in your company. Happy employees mean higher sales for you, increased productivity, and less turnover costs.
Download our employee retention eBook to learn how to keep your most valued employees without breaking your budget.
What are you doing to strengthen your employee retention strategy? Let us know in the comments section below!