Employee retention is a top priority for many companies. High rates of turnover cost a lot of money. There’s the loss of productivity as a position goes un-filled, plus lower morale if other workers have to pick up the slack. In addition, the hiring process can cost the company money.
The cost of high turnover can be up to double the salary for the open position. But what can employers do to prevent turnover? What strategies should they use in 2020 to keep their top talent working for them instead of seeking out better offers elsewhere?
Offer Competitive Salary and Benefits
When employees leave their jobs, the most often cited reason is salary. For others, benefits are the most important thing. In order to keep employees at your company, the salary and benefits offered must be competitive within your industry and in your location. If they aren’t, top talent will look for companies that will pay them what they are worth.
As important as benefits and salary are, they’re not the only factors that contribute to employee retention.
Hire the Right Fit for the Position
It’s also essential to hire the right person for each position from the beginning. It’s tempting to hire too quickly just to fill an open position or to sugar-coat some of the more negative aspects of the job just to get a prospect to hire on. But this often isn’t the right move, as it means someone who isn’t the best fit for the job or your company might end up being hired. It’s more important to find the person who will be the right fit for both the position and for the company than it is to fill the position right away.
Someone who isn’t a good fit for a job or for your company will end up leaving for a position that suits them better.
Encourage Work-Life Balance
Even your best employees need a break every now and then. If your sfaff work a lot of long hours or are constantly answering work calls and e-mails while they’re at home, you’re risking a high level of stress and potential burnout. Not being able to balance their home lives with work can lead employees to leave for a job that will make that easier. Their families and their health are more important than staying at a stressful job.
Train Managers Well
Another common reason employees leave is because of their managers. Anyone talking about why they hate their job is usually complaining about a bad boss, not the salary, the work, or the customers. It’s therefore essential to ensure that your managers are not only able to perform the technical aspects of their jobs well, but also have the soft skills to encourage and motivate employees.
Bad bosses who micromanage or yell can cause stress, loss of productivity, and employees to seek employment elsewhere. Good managers who motivate their staff and encourage them can increase productivity and inspire loyalty to not only themselves but also to the company.
Maintain Good Communication
If you have employees leaving, you can ask them in the exit interview why they are leaving, which can provide some insight into potential problems with turnover. It’s better, however, to try to prevent employees from leaving in the first place by having open communication with them. If employees feel comfortable talking to their managers or to HR, potential problems can be solved quickly before they cause turnover.
Are you in need of a HRIS to manage employee hiring and onboarding? Let HR Payroll Systems match you with the vendor that will meet your company’s needs. To get started, stop by our vendor match page.