The work force forms the crux of any organisation- efficient employees are a valuable asset for any company that they cannot afford to lose. A high rate of employee turnover can pose serious threats to the reputation of any business.
Contrary to the popular belief among manager, most employees do not leave the organisation due to pay-related reason, about 88% of employees resign due to reasons other than those strictly monetary. Job satisfaction, lack of appreciation and growth opportunities is among the few reasons why employees quit. Discussed below are some tips and strategies that entrepreneurs can adopt to retain the employees of their enterprise:
Employee turnover and the threat it poses
Employee turnover in the context of human resource is replacing the existent workforce with new employees. However when the employee voluntarily choose to quit the company, it can cost a company’s reputation heavily. Reducing voluntary employee turnover begins at the recruitment process itself. Hiring the right man for the right job is essential to ensure employee satisfaction and increased productivity. Listed below are some steps for choosing the suitable for your organisation:
- Look beyond the academic qualifications
- Utilize the social media tools and video interviews
- Consider the cultural background of the candidate
The need for employee retention
A high employee turnover can heavily cost any company; reports suggest that the cost of recruiting and hiring new employees takes about 1/5th of the annual salary of the resigned employee. Other than the monetary loss the organisation also loses time in training the new set of employees. Also the new workforce may be incompetent to meet the expectations of the firm. Some disadvantages of employee turnover are given below:
- Reduced productivity ad performance
- Advertising and recruiting expenses
- Cost of training
- Incompetency and inefficiency
- Adverse impact on the other employees
This is why Employee retention is the need of the hour.
Some effective strategies to boost employee retention:
Fair pay, regular bonus and perks
Fair distribution of salary and other perks among employees help develop a feeling of trust and harmony in the workspace. Pay them according to their qualification and work done so that he doesn’t feel left out and cheated on.
Better growth and learning opportunities
Gone are the days when only getting a job was enough, now employees are looking for better and more lucrative growth opportunities as well. This includes learning new skills and moving on to more profitable ventures. Allowing special skill development courses or sponsoring academic degrees to employees is a smart way to ensure that the workforce is up to par with the latest technology.
Take a more personalised approach
Formal or written communication such as letters or email, though fast and hassle free, does not diminish the need for personal one to one talks. Face to face interaction between the employee and employer is necessary to build trust and mutual respect. Organise meetings and conferences with your employees once a month to discuss the progress and other matters in detail.
Be considerate and appreciative
Ensure that you acknowledge the efforts of the workforce and reward them accordingly. A small note of appreciation goes a long way in boosting the morale of the employee. Be considerate to their troubles and recognise their strengths and weaknesses. Also an honest feedback can really help them improve their performance. Maintain a solid relationship with your workforce, don’t inforce unfair rules and policies in them.
Flexible work arrangements, vacations and leaves
Adopting a flexible work structure can also keep \ employees happy. For instance, many companies have dropped the formal dress code and other restrictions allowing the employees to have a bit of fun and freedom. Also some changes in the office atmosphere such as availability of snacks, or monthly outings can also boost the morale of the workforce. Try cutting some slack and create a robust and fun work environment
Transparent and clear communication
There must be a direct and transparent communication channel between the employee and employer so that there is no case of misunderstandings and confusion. Also managers must be very clear in their instructions, i.e. the workforce should be told exactly what is expected of them. Even the employer must be aware of the grievances of the employees and take appropriate steps for it.
Maintain harmony in the workspace
Creating a peaceful work atmosphere for the employees can boost their performance tenfold. Try resolving the internal conflicts before they get serious. Managers need to be patient and diplomatic in their dealings with the employees. A tense work environment can widen the gap between the employee and employer, keeping your employees happy ensures enhanced performance and better results.