Every business relies on the right talent to thrive. Your employees are the people who drive sales, improve customer retention, and even help your company to grow.
Unfortunately, a lot of new companies struggle to not only find but keep the right staff.
Employee turnover is an often overlooked but significant issue for start-ups and small companies. Not having access to the right talent will immediately prevent you from achieving your business goals.
At the same time, research shows that turnover equates to as much as 213% of a lost employee’s salary, depending on the role.
Every time a good employee leaves your business, they disrupt the flow of productivity, harm team morale, and damage your company culture.
So why do new companies struggle with retention, and what can you do to overcome this problem?
Lack of Recognition
Perhaps the most common reason people leave a role is because they feel unappreciated and unhappy in their current position. Your employees want to know that you’re recognizing and respecting their hard work.
This doesn’t mean that you need to give every staff member a massive bonus whenever they reach their career goals, but a simple “well done” is the least you can do.
Around 66% of employees say they would quit a job where they felt unappreciated, so think carefully about how you can show your staff they care.
Consider things like sending email announcements when people achieve their sales goals or congratulating team members on work anniversaries.
If you have remote employees, you could send group announcements over remote chat and meeting apps awarding “kudos” to people who accomplish incredible work.
You might even decide to gamify your business culture slightly by rewarding team members who score the highest results in important metrics each week or month.
The most talented employees are looking for companies they can see a future in. No staff member wants to know they’re stuck in the same role for the rest of their lives.
At the very least, they need to know they’re going to be able to earn new skills and accomplish goals while working with you.
Offering your staff plenty of opportunities for advancement is an excellent way to ensure they can see a future with your brand.
You might offer regular training courses online and offline for people who want to develop IT talents or leadership skills. Alternatively, you could sit down with each team member and help them create an individual plan for their future with you.
Opportunities for advancement simultaneously convince your employees to stick around while also ensuring you can take advantage of new skills in your workplace. It’s a win/win for both sides.
You’re Not Investing in Engagement
Lack of engagement is one of the most common reasons any employee will end up leaving a company.
Today’s staff members aren’t just searching for great salaries from the employers they work for – they also want to feel like they’re doing something important.
Staff members want purpose, exciting tasks, and interesting opportunities within their roles. With that in mind, it’s important to make sure you’re taking steps to boost engagement.
One option is to make sure you have a plan in place for regular recognition. 52% of staff say recognition improves engagement.
It’s also a good idea to schedule regular meetings with staff so you can track their progress towards personal and business goals and check for any signs of impending issues.
Use these meetings to get a sense of how your employees feel when working for your brand and what they need from you to do their best work.
Discuss any challenges the employees face and review their accomplishments – with rewards when appropriate.
You might even decide to set new goals together and create a strategy for how you’re going to pursue and measure progress over time.
The Compensation and Benefits Don’t Add Up
Most of the best employees in the modern landscape aren’t motivated entirely by salary and benefits. However, your people will need to know they’re being paid what they deserve.
With this in mind, make sure you keep a close eye on the market. Are you offering your staff a fair salary for their skills and the amount of work they put in?
Aside from the regular wage, it’s also worth considering the “extras” that make a job with your company so appealing.
For instance, can you provide your staff members with a fantastic health insurance policy and dental plan? How do you approach paid sick days, paid holidays, and even parental or maternity leave?
One popular choice is to adjust the office design and allow more employees to work remotely when they’re keen to bring more flexibility into their lives.
Remote and flexible working arrangements have emerged as a standard part of the workplace today.
The Company Culture Wasn’t Right
Company culture might sound like another employment buzzword – but it’s a crucial consideration for employee retention.
Culture revolves around the experience you can give your staff and the kind of values you demonstrate as an employer.
For instance, transparency in your company culture can lead to up to 30% greater employee retention because transparency leads to trust.
Consider the values that make your business unique, and ask yourself how you’re demonstrating these in the way you interact with and support your employees.
It’s also a good idea to make sure you have a clear vision of what your company culture looks like before you dive into employing someone new.
Knowing your culture in advance means it’s easier to find and hire employees that are a natural fit for the business you’re building.
Don’t Struggle with Retention
You may not be able to prevent employee turnover entirely – no matter the size of your business – but you can improve your chances of holding onto staff for longer. Use the tips above to make roles with your company more attractive.
Don’t forget, exit interviews with staff can also give you an insight into why team members are leaving, so you can make positive changes.
This guest post was written by Ashley Wilson and may not be copied or published without PeopleGuru's express written permission. Ashley is a content creator, writing about business and tech. She has been known to reference movies in casual conversation and enjoys baking homemade treats for her husband and their two felines, Lady and Gaga. You can get in touch with Ashley via Twitter.