Top 7 Employment Retention StrategiesBy Gretchen Neels
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Nothing hurts a firm as much as having strong, talented employees walk out the door. It can damage the company’s image, lower the morale of other employees, and have a major impact on the bottom line. It costs anywhere from 30-50% of the individual’s salary to rehire and train a replacement. For example, if superstar project manager Becca Taylor leaves XYZ Company where she made $125,00 per year, it will cost $37,500 to $75,000 to replace her. Here are seven steps to foster an environment your superstars won’t want to leave:
- Listen – are you listening to what your employees are saying?
- Praise – give plenty of sincere praise whenever and wherever possible. This costs nothing, improves morale, and always makes you look great.
- Check in – conduct a stay interview. This is the opposite of the exit interview. Ask what is making them happy and what isn’t. You will be surprised that most times, salary doesn’t even come up.
- Stay current – are your salaries and benefits in line with the market? If they aren’t, your people know it and will respond to headhunters when they call with opportunities to make more money.
- Review perks – perhaps there is there something you could offer your employees to make life a bit easier, such as dry cleaning pick-up, take home dinners from the cafeteria, public transportation discounts, etc.
- Be flexible – more and more, employees want flexibility in their lives, often to attend to children and aging parents, but sometimes just for themselves. Be open to flexible options such as job sharing, telecommuting, and creative work weeks (e.g., working four 10-hour days and having one day off).
- Do good – be sure you offer your employees the ability to feel that they are making a difference, either with the work your company does or by giving them time off to work for a good cause. For example, a law firm may wish to take on more pro bono clients, or a manufacturing company might choose to allow employees to devote 10 or 20 hours a year to support Habitat for Humanity.
Neels & Company - Strategic Business Communication
Article Submitted On: September 18, 2006