Poor employee retention is a universal problem among a lot of businesses. There’s probably no company in the world that doesn’t face this difficulty. Employees come and go, especially when they’re no longer happy and satisfied, or if they’ve found a better opportunity elsewhere.
When you’re a company that constantly loses employees, it can often be costly and challenging. You’d have to go back to square one with hiring. Then there’s the training. Though common, the problem is avoidable if you have proper employee retention strategies in place.
Here are some ways you can improve your employee retention:
1. Conduct Exit Interviews
As the term suggests, an exit interview refers to the interview you give your employees when they leave the company. Your objective is to find out why a certain employee is leaving. That way, you’re making yourself aware of how your employees feel about your company. The feedback will shed light on how you can change and improve your organization to increase employee satisfaction.
An exit interview is also an opportunity to talk with an employee on a one-on-one basis. Perhaps your company could have made minor changes so your employee wouldn’t have decided to leave. Or maybe the problem was simply a matter of miscommunication. An effective exit interview will give you insight on what you can still work out and improve. This learning can form the foundation of a new program that will work for the benefit of both you and the employees.
2. Offer Competitive Salaries And Benefits
Another effective employee retention strategy is to keep your salaries and benefits competitive. Make sure the wages that you offer comply with the minimum wage requirement, at the very least. If the company can afford it, be generous with salary increases. If your employees can have a comfortable standard of living while working for you, then they’re bound to stay.
Employees are motivated when their efforts are recognized. Although this means an added expense, you’ll get your return on investment when your employees give you good results. With this strategy, you’ll immediately see an increase in your employee retention in the company.
3. Be Involved In The Hiring Process
Hiring employees entails more than just asking questions. The process is also about getting to know the potential members of your workforce. Early on, you’ll be aware of employee expectations. This will allow you to be proactive and make necessary steps to improve as an organization.
Here are some questions that can lead you to strategies to improve employee retention:
- Why are you applying to this company?
When you ask this question, you’ll know what employees are expecting if they work in your organization. - Why did you leave your previous workplace?
This question isn’t meant to pry or put down another company. On the contrary, the question could give you insight on how to do better. If another company caused an employee to leave for a certain reason, maybe it’s high time for you to make some changes to avoid the same mistakes. - What are you looking for in an ideal workplace?
Asking this question doesn’t mean you intend to change an entire company culture for one employee’s sake; it’s about finding a compromise. Should an employee prove to be an asset to the company, you can anticipate and address issues to ensure they stay.
When you’re involved from the beginning, you’re increasing your chances of getting successful and quality hires who fit the company. Some employees leave because they find out later on that they’re not a good fit for the job. Being hands-on with the hiring process allows you to align expectations with a potential employee early on.
4. Encourage a Culture of Open Communication
Some employees fear opening up to their managers or bosses. Workers hesitate to speak up since they worry about negative consequences or potential conflict with colleagues. But this kind of culture will hold your company back from succeeding.
When there’s a lack of communication, problems pile up until it’s too late to resolve them. Open communication is the key for growth. Encourage openness in your company by letting your employees see and feel that you’re approachable. One way of doing this is by setting regular meetings where your employees can bring up their work concerns, ask questions, and share their ideas.
Conclusion
Employee turnover is costly for any company. Your company could experience this difficulty at any given time. In today’s businesses, it seems as if companies are faced with the constant battle of employees leaving. Low employee retention rates are not only costly in terms of money but also time. But while it’s a common problem, you can avoid it with the help of these effective employee retention strategies.