The labor market is tighter now than it has been in years. Unemployment rates are low. Worker mobility has entered a new age. The gig economy has given job candidates more flexibility than they’ve ever had before.
All these factors conspire to make retention extraordinarily difficult.
There are two basic kinds of turnover problems. One type sees you having to let people go because they can’t work up to your standards. The other involves people leaving the company for better opportunities.
To improve retention, you should attack both causes of shortened tenures. Below are four steps you can take to keep employees for the long term.
Increase Hiring Standards
If you find you’re frequently letting new employees go, try tightening your hiring qualifications.
Raising your standards for incoming workers will allow you to focus on higher-quality candidates. Even if this lengthens the recruitment process, you’ll save money in the long run by not having to reverse your decisions and start all over again.
You’ll also have a better crop of people to start with, which should set the stage for a longer relationship, thus improving long-term retention as well.
Improve Your Training Regime
Investing more resources in your training program will improve retention as well. This endeavor will cut down on bad hires, and help cement the good hires in their positions for the longer term.
Better training will keep your good employees with you longer. It lets incoming workers get more comfortable with their jobs, cutting down on early frustrations and smoothing the social integration.
Review Your Compensation Policies
Compensation represents the obvious culprit if your employees have a short shelf life. The underlying point of a job is to get paid, so raising salaries and providing generous benefits goes a long way to keeping your staff for the long term.
However, (and you don’t need us to tell you this) money is a limited resource. Your budget might not allow for significant raises and benefits. Still, if your compensation package is below industry standards, you’ll always have a problem keeping people.
Research the prevailing salaries in your market and do what you can to keep pace. If possible, try to set your salaries above the average. The decreased cost of turnover and recruitment should help pay for some of the additional wages.
Culture and Leadership
As we’ve said, you can’t always afford to give that raise. Even if an employee deserves a bump in salary, the budget won’t always allow it. What’s left to hold an employee when you can’t keep them with cash?
This is where culture comes in.
Provide a welcoming environment and an enjoyable workplace experience. Cultivate positive social interactions. And whenever possible, communicate how your company helps society in general. Happy, inspired workers are likely to stay for a long time.
Also, look to your impact on retention. We know self-reflection can be a painful process. But consider whether there are things you could do to improve your staff’s work experience.
Make sure you always maintain respect and a constructive demeanor when you deliver feedback. Look for ways to show people you appreciate them. By fine-tuning your leadership style, you’ll feed into the supportive culture and encourage a long-term relationship with your team.
Thinking about retention can be seen as one of those high-class problems. It assumes you have employees you want to keep. Finding workers you can build long-term relationships with becomes easier when you partner with a first-rate recruiter like DHR. Contact us today to find out more.