Keeping your best employees allows you to maintain stability and drive innovation. On the other hand, retention problems can ripple through your company. Continually lose your best employees, and you’re likely to suffer significant consequences. It makes reducing turnover a priority if you want to sustain long-term growth.
High turnover will cause your recruiting expenses to rise, thanks to your ongoing need for fresh hires. At the same time, many of your bigger projects will end up stalled, as you see your best contributors walk out the door.
Given these potential issues, it’s clear that you should take whatever steps you can to reduce turnover. However, it’s hard to know what to do. We’re here to help. Here are a few steps you can take to improve retention and, ultimately, boost your bottom line.
Make Sure Your Compensation Stays Competitive
This is the most basic step you can take to keep turnover under control. Ultimately, people work for money. If they don’t earn enough, they will be tempted to look for other opportunities.
As such, you should keep your compensation packages as competitive as possible. This involves staying aware of changing market conditions. What was competitive a few years ago may have fallen behind.
Recognize Employee Successes
Compensation is an extremely concrete way to show your appreciation. In a situation where higher compensation isn’t a possibility (like when you’re operating with a tight budget), you have to look for other ways to recognize your best employees.
This can actually go a long way in keeping turnover under control (more than many managers realize). Workers want to feel appreciated and to be told that they are valuable contributors to the team. By taking steps to highlight strong performances, you build long-term relationships and increase retention rates.
Focus on Your Best Contributors
Not all turnover is equal. If you have some churn at the lower end of your team, you can deal with it. But losing your best contributors can cause significant problems.
With limited resources, you need to be targeted with your approach. Pinpoint your top performers and focus your retention efforts on them. It will allow you to minimize the damage from any potential departures.
Encourage Work/Life Balance
Achieving success sometimes means long hours and sacrifice. However, if you demand this kind of commitment 24/7, you’re likely to push your employees over the edge. And what’s worse, your exceptional employees will likely be the first to leave, since they have the most options.
Instead of driving workers toward burnout, inspire them to develop a sustainable work/life balance. Don’t just allow them to take vacations. Encourage it. It may seem like diminished productivity in the immediate term. But looking at the bigger picture, you’ll keep your best workers longer.
Recruit the Right People to Start With
High turnover rates may not indicate a problem with your retention process. Instead, it might suggest that your recruiting program has some holes. If you have to let people go, or you keep seeing your employees leave, they may not have been the right fit in the first place.
Review your hiring practices. Make sure that you’re bringing in the right people for the positions you offer.
A staffing firm can help with this process. By teaming with a strong recruiting partner, like DHR, you ensure that you have the right team in place for the long haul.
Contact DHR today for more information on how they can upgrade your recruiting efforts.