Having Employee Retention Programs Save Money, Time. According to the Society of Human Resources Management (SHRM), it can cost a company anywhere from 6-9 months of an employee’s salary to replace them (which includes recruiting and training costs). When a valued employee leaves their job, it is certainly costly and disruptive for both management and the rest of the staff.
People leave their jobs for a variety of reasons. One of the biggest reasons people move on is that they are unhappy with their salary and benefits. It could also be the work environment or lack of training and education. Whatver the reason, it may seem easier for them to look for another job.
However, creating an employee retention program for your company can shine light on the missing piece if your turnover is higher than you would like. Let’s explore the ways you can create an employee retention program and cut the cost of employee turnover.
How do I set up an Employee Retention Program?
If you are finding yourself constantly in the hiring process, you might be wondering how you can retain employees. You can take simple steps to create a retention program for your company. Here is a to-do list to ensure you set up the right retention program for your company:
1. Gather Data from Exit Interviews
When an employee quits, your company should always do an exit interview. This is an excellent way to collect the information you need to uncover problems within the company. This data can be described as qualitative data. According to the book “The SAGE Handbook of Qualitative Research” by Denzin and Lincoln, qualitative researchers study things in their natural settings, attempting to make sense of, or interpret, phenomena in terms of the meanings people bring to them. Here is a list of must-ask exit interview questions.
2. Hire the Right People in order to Retain Them
Your employee retention program should start even before you post a job description. Because being selective about what you are offering and who you will interview will help retain your employees. This will help you save money and time down the road.
You want to find candidates that not only match the skills the job requires, but you want them to fit into the company’s culture, which includes other managers and co-workers. Working interviews are a great way to see how a candidate fits in with the atmosphere.
3. Reconsider Salary & Benefits Package as an Employee Retention Tool
If salary and benefits keep coming up as a reason why people leave, then it is worth your time to investigate ways to become competitive in this area. Find ways to offer affordable health insurance, life insurance, and a retirement plan coupled with the extras like flextime or telecommuting options and you might have the tricks that stick.
4. Tune-Up the Company Culture for Employee Retention
Your employees want to feel safe and comfortable. They want to be part of an environment that is inviting and maybe even fun at times. When you put your people first, you will have a company that attracts the talent and longevity you are seeking. An added benefit, happy employees are productive employees.
5. Conduct Employee Engagement Surveys
Don’t wait for the employee’s exit to engage with them. Develop and conduct Employee Engagement Surveys. In doing so, they will provide valuable feedback and insight into how they view their work environment and how committed they are. This will uncover potential roadblocks that can be fixed. Target the questions to your company culture and what you want to get out of the survey. Then act on the recommendations so employees see positive outcomes where necessary.
6. Pay for Training and Continuing Education
Perhaps your employees feel a little stagnant. One way to boost their productivity and possible advancement opportunities is to offer additional training. Enhancing their skills is not only great for your own company, but for their desire to feel valued. Look in to things like computerized training, online seminars, mentoring programs, or a local conference.
7. Be on Top of Reviews
Being consistent with reviews can really help because it opens the lines of communication with your team. You can perform them quarterly, semi-annually or annually. This will help you understand what is working and what isn’t. It is a time to challenge your employees to personally review themselves. Reviews will also offer some insight as to what the employee might need in order to retain their loyalty. Asking the right questions is critical to the process.
8. Create a Recognition Program
A large part of employee retention programs is recognizing staff for a job well done. Acknowledging the work your team does is great and can really help boost morale. Want more information about a recognition program?
There’s little doubt employee retention programs save money and time. By implementing these simple tools, you can easily design a retention program that works for your company.