A business model that prioritises employee retention rates can’t be beaten, so how can you ensure your staff stick around? Here are some ideas…
In today’s world, profits and domineering bosses are a thing of the past. Now, people are looking to work for companies where they feel valued as part of a team, and are rewarded for their hard work.
That said, not every company gets it right. Little do they know that there are five very simple ways you, as a company owner, could boost your employee retention rates.
From seeking employee ownership advice to make your company employee owned, to investing in your employees through training, there are plenty of ways to retain your staff. In this article, we’re going to take you through five of the best methods any business owner can use to keep their employees around for the long-haul. Take a look…
1. Consider Employee Ownership
Employee share ownership (ESOP) is a business model wherein some, or all, of the company is owned by employees. This can be achieved through a number of different methods and types, including:
- Individual Share Ownership: where employees individually own company shares through buying them, being gifted them, or an alternative means. They’re usually subject to income tax and National Insurance.
- Trust Ownership: the company owner sets up an Employee Ownership Trust (EOT), and shareholders must sell between 51 and 100 percent of the company to the EOT. Employees are then allowed to get involved.
- A mixture of the two: alternatively, a company may choose to provide employee ownership through a mixture of both options. In this case, the EOT should obtain over 50 percent of the business to maintain major control.
In a model like this, employees have a direct stake in the company finances and successes. But why is this such a successful strategy?
Well, for starters, employees having a stake in the company means they’re much more likely to do the best job they possibly can. What’s more, it can really build the company culture, as it encourages staff to get stuck in with company decisions and ideas.
In fact, numerous companies have tried this out, and have received marvellous results. For example, John Lewis is employee-owned by over 200,000 staff members. On the matter, the company has said that the team are “united by an ethos that puts people first, involving the workforce in key decision-making and realising the potential and commitment of their employees.”
2. An Open and Honest Company Culture
As a company owner, you might be a little cautious to expose all your company secrets, and this might be detrimental to the business in some ways. However, striving to be as open and honest with your team as possible could really work in your favour.
For example, many companies keep staff unaware about company finances. That said, involving your staff in this aspect of the business, and giving them the chance to have their say, could benefit the company greatly.
For starters, your team may have ideas and thoughts that you might not have come up with yourself. It’s never a bad thing to get the wider team perspective in terms of company decisions. More importantly, though, it creates a sense of unity between employees, and makes them feel like a trusted and valued member of something bigger then themselves.
3. Invest in Your Employees
Investing in your employees is a fool proof method of retaining staff, keeping them around for the long-haul. This can be done in a great number of ways.
One of the main methods of investment is staff training. Paying for your staff to attend events and webinars to upskill has many benefits, the first being improving staff expertise and skill level, and hopefully their work efficiency. That said, it also has the added benefit of making staff feel valued and wanted, which creates a loyal and hardworking team.
Some other great ideas for investing in your employees include:
- Prioritising work/life balance
- Providing commission
- Investing in functional equipment, like laptops and supportive office chairs
- Purchasing all the tools and systems required to complete jobs effectively
4. Treating Your Staff Once in a While
Investing in your employees in the workplace is one thing, but investing in the team outside of the work environment also has many benefits. To do this, you could treat your employees to food, drink, and team parties every so often.
Again, this demonstrates to your employees that they’re valued. It also provides them with the opportunity to enjoy one another’s company, helping to build a supportive and connected team that can work together seamlessly.
5. Having Great Company Benefits
These days, so many companies tout their “excellent staff benefits” yet, on looking at these benefits, they are pretty basic. 25 days holiday and a pension is not unique, and should not be deemed a company selling point.
Instead, you should work to make your company benefits unique, and actually something that go above and beyond for their employees. Some examples of ways you could really treat your team could include:
- Bonuses at the end of the year for hard work
- A pension contribution that exceeds the norm
- Charity days to take off work for volunteering
- Health insurance
- Dental insurance
- Extended sick leave
- Team events
These are just some of the ideas you could look into. You could even consider asking your staff what they’d like as part of the staff benefits to make it more personal to them.
In doing so, you’re making it clear that your employees are truly valued. This way, you should be able to retain those you already have, and entice more top talent through your doors too.
Ready to Boost Your Employee Retention Rates?
As you can see, these are five very simple yet very effective methods to keep your valued staff members around for longer. All it takes is some investment in time and money to create a long-lasting team that are loyal and care about your business.
Do you have any more ideas for ways businesses can improve employee retention? Be sure to leave them in the comments down below.