For the long term success and health of your business, you must be good at retaining key employees. Most managers will agree that retaining good employees results in increased product sales, customer satisfaction, satisfied coworkers, organisational knowledge and learning, plus effective succession planning.
Not being able to retain a key employee can create organisational issues such as insecure workers and prove to be costly to the bottom line. The approximate cost of losing a middle manager costs an organisation up to 100 percent of the employee’s salary.
Losing a senior executive costs even more. It is not just the lost revenues that make failure to retain good employees an expensive affair but also the fact that training and replacement is quite costly as well.
If you wish to retain the remaining staff you can conduct exit interviews which can provide you with valuable information as departing employees are always more honest than those which are still onboard.
Your best and most wanted employees will not take part in job hunting if you pay heed to the retention advice which is given here. The existence of following factors in your workplace make it less likely for your employees to leave the organisation.
Clear about expectations
Constantly changing the expectations that you have from your employees can result in unhealthy amounts of stress. A specific framework must be provided within which people are expected to perform.
Provide Supervision or Quality Management
Quite often it is because of supervisors and managers that people leave companies and not because of the nature of the job itself. Following are some of the common areas of complaint that employees have:
- Lack of clarity about potential to earn
- Lack of clarity regarding expectations
- Failure to hold scheduled meetings
- Lack of performance feedback
Ability to speak their mind freely
The organisation should provide an environment and solicit ideas in which people feel comfortable to provide feedback. In such environments employees can commit to continuous improvement and feel free to criticise and offer ideas and in this way contribute to the overall employee retention strategy.
Allow them to use their skills and talents
The best way to know whether an employee is motivated or not is to gauge their eagerness to contribute to work areas that fall outside his or her specific job description. You can begin to tap into your employees’ potential after you have taken time to learn their talents, skills and past and current experience.
Perception of equitable treatment and fairness
Differential treatment of employees such as allotting a commission-producing accounts and successful account to a new sales representative can make other representatives feel cheated.
The organisation shouldn’t offer different salaries to those who deserve to be paid equally. Receiving lesser salary or not being given the raise can affect the morale of an employee.
Training, Time and Tools
If an employee is unable to deliver the performance that is expected of them then you should ask yourself: ‘what about the current work system is making the person fail at his or her duty?’
Every employee must be given all the necessary means to do their job properly. Not being given the necessary resources makes the employee want to move to an organisation where they will be given the tools to succeed.
Learning and Growth
Employees can take on challenging tasks, try new opportunities and attend seminars to avoid stagnation. A valued employee who is career oriented should be given opportunities within the organisation to grow so that they can utilise their potential.
Senior management should be aware
The senior management in any company must take out the time to meet with employees and learn about their skills, abilities and talents. Periodic meetings with each employee is a critical tool to help employees remain loyal to the organisation and feel that they are acknowledged too.
Even if there are layoffs nearing, one shouldn’t foreshadow this information with employees. Irrespective of how you explain the information or phrase it, your staff members will begin to feel nervous. Crucial information shouldn’t be upheld from the employees.
Retaining employees is an effective tool to grow your company. Without good employees a company is always at a risk of hitting stagnation just like an estate is at a risk if a Will has not been written using a Will template.