As a small business owner, you understand the importance of hiring the right employees and keeping them on payroll. Not only is it inconvenient to constantly hire new employees, but it can also be downright costly. By hiring the right people from the start and focusing on ways to retain them, you can decrease turnover and establish a healthier organization that values long-term commitments. Consider these tips as you work to retain employees.
Offer Competitive Pay and Benefits
As you probably know, the bulk of your employees are in it for the money. There is no way you can expect to keep employees if you pay less with fewer benefits than your competitors. Though it may seem costly, offering competitive compensation with great benefits is your key to keeping employees around.
Compare your benefits plan, including various insurances, retirement plans, flextime, vacation and sick days, and any other benefits you offer. If it’s lacking, you may have found the reason for your frequent employee turnover.
Prioritize Hiring From Within
A clear path of advancement gives employees an incentive to stay. If they know there are opportunities for growth within the company, they’ll be more inclined to stick around. When a higher-level position comes available, don’t pass over your current employees to hire outside the company. Not only will this help you cut down on the guesswork of the hiring process, but it will also help you to gain approval from your employees, who will recognize that you value them and their work.
Conduct Exit Interviews
When it comes time for an employee to move on, perform exit interviews to gain valuable insights on how to improve the company. This is one of the best possible ways to gain information about how to improve your organization. A current employee would be hesitant to give you negative feedback for fear of losing their job or being demoted, but a departing employee can freely discuss concerns and offer suggestions for improvement.
Conduct Stay Interviews
When you conduct an exit interview, you’re trying to discover the reason an employee is leaving. When you conduct a stay interview, you’re trying to figure out why an employee is staying. Take some time once or twice a year to ask your long-lasting employees what makes them stay. By asking the right questions, you can pinpoint your company strengths and emphasize them to improve the overall employee experience.
Sometimes the smallest of perks make working for a company enjoyable. Freebies, such as donuts on Friday or a comfortable break room, may seem small and insignificant to you, but for your employees it can mean the difference between getting comfortable in the workplace and searching for a new job.
Invest in Team Building
People don’t like to be told what to do, but they do like to be a part of a team. Focus on team building between you and your employees to build relationships among co-workers, and keep lines of communication open. Hold regular meetings in which everyone can participate with a designated and important role. Team members should be able to communicate effectively with their managers in these meetings without fear of repercussions.
Motivate with Incentives
Material rewards can do wonders for lifting employee morale, especially when it comes to improving efficiency in the workplace and diminishing turnover rates. These rewards might include a bonus for meeting a certain goal, or an employee of the month award including optimum parking for those who go above and beyond.
Furthermore, annual raises and bonuses provide excellent motivation for employee longevity. If the raises are significant, it’ll be difficult for employees to find such perks elsewhere.
Invest in Human Resources
A great HR sector is incredibly comforting for employees. While it may not be worth it to hire a whole HR team for extremely small businesses, those with 75 or more employees can greatly benefit from an HR employee advocate who helps to integrate employee benefits and eases employee-employer relations through various programs and meetings.
The underappreciated employee is the one who leaves first. Nip this in the bud by offering appropriate praise for a job well done. Make it known that bonuses will be divvied out for those who perform their jobs exceptionally well.
Though money is incredibly motivating, it’s not the only important factor in employee retention. Consider also rewarding excellence with verbal praise. Recognize someone who has performed extremely well in front of other employees, or offer a simple thank you note to let them know they are valued.
Offer Quarterly Reviews
Every three months, offer an interview period where you can assess an employee’s current work ethic and discuss ways that both of you can improve. During this time, you can redefine goals and ask for feedback on the things the company is doing well and ways that it can improve. Through these reviews, you can build relationships with employees and seek ways to improve.
Keep a Positive Atmosphere
Everyone understands the feeling of walking into a room where they feel uncomfortable or bored. Seek to eliminate that feeling in your workplace with a positive, comfortable environment. Offer trainings on staying positive while at work and allow each employee to customize his or her workspace. The culture should be familiar and uplifting so that each employee feels good.
Invest in Your Hiring Process
Sometimes the key to employee retention goes back to the beginning. In your hiring processes, look for employees who intend to stick around. Be very specific in your expectations in the job description and conduct high quality interviews to eliminate undedicated candidates and find those who intend to stay in the position for a while.
An excellent way to streamline your hiring process and avoid hiring flaky employees is to use an applicant tracking system, which helps you to organize applications and respond with ease.
Superior Small Business Applicant Tracking System | Recruiteze
We hope these tips help you keep your most valued employees with your business! Need help managing your recruiting efforts? Consider using Recruiteze, today!
Our small business applicant tracking system allows your candidates to apply with ease. They will be added to your database immediately. As a customer, you can access your candidate’s resumes online and make changes quickly. Try Recruiteze for free today by clicking here.