As a small business owner, the team you surround yourself with can either make or break your vision. With a growing business, comes a growing need for finding the right people to fill the necessary positions to keep the machine running smoothly. The trouble is that finding the right employees is simply not enough.
Employee retention is essential to business growth and success. Whether you are noticing a high employee turnover rate, or you are simply looking to proactively ensure retention, there are always ways to improve your company’s environment and ensure your employees remain happy and in a healthy office environment.
Focus on Management
Whether you have a team of managers, one manager who reports to you, or you are the manager (in addition to being the business owner), it is important to focus on management first and foremost. Poor management is one of the top reasons for voluntary employee turnover.
Here are a few things to evaluate and build upon in order to improve employee retention:
- Clarity. According to Gallup research, unclear expectations from management is one of the top indicators of management trouble. Management that is not clear not only effects employee retention, but also employee productivity.
- Communication. Many companies opt for end of the year employee reviews, but if retaining employees is a problem, waiting a full year is just not practical. Instead, encourage open communication by providing constant feedback. This will also help with the clarity issues.
- Recognition. Don’t assume your employees know they are appreciated. Providing recognition for a job well done is key to employee retention. Keep in mind that as the manager, you set the tone for the office. If all your feedback is focused on the negative, the tone in the office will start leaning towards the negative. Practice a healthy balance of both positive and negative feedback.
Evaluate Pay and Benefits
It is no secret that pay and benefits are essential components of any job. Employees must feel like they are being paid fairly for the work they do in order to remain with a company.
Consider if you are offering competitive benefits for your industry? Do you even know what others in your industry are offering?
Taking the time to research what similar positions provide their employees can give you an idea of the competition out there. It may also open your eyes to some major reasons employees are choosing to leave.
While you may not be able to offer equal pay as other, larger companies, you may be able to provide some benefits that they do not, like more flexible work hours, or the ability to work remotely. Perks like these can be a major factor in your employee retention strategy.
Opportunities for Advancement
This can be tough, especially in a small company with few employees. To truly engage and retain employees, you must be able to offer more than a dead end position. Be realistic with your employees about opportunities for advancement. Otherwise they may become disillusioned and disengaged, eventually seeking a position elsewhere.
Finding and hiring the perfect employee is simply not enough to launch your business to success. You must focus on finding ways to improve employee retention and engagement. Taking the time to create and put into effect an employee retention strategy can make all of the difference in your company.