Best Ways to Invest in Your Employees to Reduce Turnover
Where would your business be
without your employees? Starting a business was an incredible accomplishment.
But to stay successful, you need to expand it. Most likely, you’re not the only
one contributing to your company’s success.
Your knowledgeable and hopefully loyal staff is helping you.
As an employer, you want to
retain team members who are doing an excellent job, so they don’t go work for
your competitor. So, you must invest time and resources to ensure they stick
around. Losing one person can put you in a position where you’re scrambling to
find an ideal replacement.
What’s the cost of losing an employee?
High employee turnover can
drive a business owner crazy. After you’ve spent countless hours finding the
right person for the job, it’s frustrating to have them walk out the door six
months later. The reality is that it can happen no matter how great of a boss
you are or how much people enjoy working for your company. People’s lives steer
them in different directions, so there are external factors you can’t control.
But you should be concerned if
workers are leaving your company frequently. If that’s happening, something is
wrong internally. It’s your responsibility to find out what that something is
and correct it. Otherwise, you’ll continue to pay for employee turnover –
can be expensive when a team member quits. Here are a few cost factors to
Time devoted to hiring, onboarding and training processes
Lower productivity since the rest of your staff is required to pick up the extra workload
Learning gap between the new hire and your established workforce
Mistakes made by the new hire that likely would not have been made by a seasoned worker
Wavering morale as yet another person leaves the business
You may also owe your former team member money for accrued vacation time, unused sick time, health insurance contributions, and severance pay.
Many variables make it
impossible to calculate the exact cost of employee turnover, but you can see the
kind of negative impact it has on a company. You’ll be taking unnecessary hits to
your bank account, time, and company culture.
Unless you’re excessively pampering your staff, you’re inevitably going to experience turnover. Someone may quit for a job with better benefits (such as health insurance or a 401(k)). Someone may leave for a higher salary elsewhere. You’ll have to assess your business to determine what the priorities are and how far you’re willing to stretch to give everyone what they want.
Create a worthwhile culture
If you can create a workplace
where your employees don’t dread going to, you’re off to a good start. Ultimately,
work is work, but that doesn’t mean you can’t sprinkle a bit of fun into the
environment. Encourage laughter and help staff members end each day on a
Team building exercises can lighten the mood and give everyone a nice breather. You can focus on business in each activity, or you can try to take work off everyone’s mind. Team outings (like going to lunch or happy hour) can go a long way toward building friendships, which can influence whether a worker stays with your company.
Perks, little or big, can also
encourage your team to stay. Coffee plays
an important role in many people’s lives, so get a quality machine for the
breakroom. Everyone loves food, so cater lunch occasionally (and don’t forget
If you’re looking to make a
bigger gesture, consider whether you’re offering enough vacation time and try
to provide opportunities to earn bonuses. These, combined with substantial health
benefits and a 401(k), can go a long way.
Devote time and money to employee development
Generally, workers want to
grow and excel in their roles. They don’t want to feel stuck, or they’ll look
for another opportunity that can put them on a more desirable career path. Offering
a clear direction for career advancement can drive a team member to achieve
That’s why it’s crucial to
invest time in your staff. Show them that you care about their current and
future success. Understand how they feel and where they want to be in one year,
two years, and five years down the road. That commitment in their future will
inspire them to stick around.
It’s common for businesses to
establish programs for career growth. Your company can offer things like:
continuing education to help individuals refine
tuition reimbursement for those who want to go
back to school
leadership and mentoring programs for anyone
who wants to go into management
Many people allow their
careers to define who they are as a person. Make sure you’re giving them a
chance to succeed and be proud of where they work.