It is always in an employer’s best interest to hold on to talented employees. Having a high staff turnover isn’t just an inconvenience, it also has huge financial implications for employers. In fact, replacing an old employee can cost up to two times the employee’s salary. This includes the cost and resources for advertising the position, interviewing candidates, running background checks, and onboarding the selected candidate.
In addition to the financial effects, having a high staff turnover can disrupt productivity, reduce employee morale, and dismantle the company culture.
How to retain talented staff and reduce employee turnover?
If you are having trouble retaining talented employee’s all is not lost. Here are a few steps you can take to improve your chances of keeping talent in house.
Don’t neglect culture and fit for skills and qualifications
It may be tempting to hire the most qualified candidate that steps into your interview room. However, most qualified does not automatically mean the best fit. Hiring the right candidate for your business also involves ensuring they align with your company’s values and culture. It is important to recognize the values and culture you desire to see mirrored in your business during the interview process.
Create an effective onboarding and mentorship program
Analyze your onboarding process from when the employee receives their offer letter, to their first day, and their training period. What does that process reflect and communicate to new hires? Your onboarding process sets the tone for what employees can expect from their tenure at the company. It is also important to note that an effective onboarding goes beyond the employee’s first week and can include continuous feedback and evaluation for up to a year.
Incentive and recognition
It’s easy for the negative to outshine the positive accomplishments an employee has. However, if you want to keep talented employees in the company, it is imperative that you give credit where credit is due. Studies have shown that employees are far more likely to repeat and continue actions they are recognized for. Employees love knowing their efforts are being appreciated, so doing employee shout outs and incentivising good work is a great way to retain talent.
Share growth plans
Having a projected plan for growth in the company helps the employee to feel more secure in their role as well as motivates them toward a goal. Create a plan that includes milestones and KPIs that an employee should achieve to be promoted. Providing opportunities for professional development through conferences, seminars, and courses is also a great way to keep employees engaged.
Foster a psychologically safe environment
Psychological safety is crucial for ensuring employees feel secure and at peace in the workplace. Having a lack of psychological safety results in low productivity, low self-esteem, increased anxiety, and an overall deterioration in their quality of life. Make psychological safety a priority in your workplace by encouraging open dialogue with employees, creating a safe space to birth new ideas, and fostering a diverse and inclusive environment.
Employees who feel included and supported at work are more reluctant to leave and more likely to encourage other talented candidates to apply for available positions.
Employees are seeking more than just a competitive salary and office pizza parties. To retain talented workers, employers must create an environment that encourages work-life balance while fostering a culture of recognition, respect and growth.
