Employee Retention: A Key to Small Business Success
Small businesses know that there are a lot of reasons to try to hang onto employees.
Veteran staffers have knowledge of procedures and workplace culture which can be difficult for newcomers to pick up quickly.
There are also financial factors: a departing employee may require some sort of severance along with accrued vacation. There are lost productivity costs involved in hiring and training their replacement. Other employees may take on extra tasks until the new person gets up to speed, causing increased stress and a greater possibility of others leaving.
Employers can avoid this by focus on retention as much as possible. There are certainly circumstances where people must depart, such as chronic discipline problems or if a spouse must relocate. But if you constantly focus on little and big retention strategies, employees may find it easy to stick around – or at least a lot more difficult than leaving.
Try some of these methods to encourage retention:
Encourage professional development
Find ways for them to gain skills, whether it’s to do their job or other jobs in the company better, or gain a better job in the future. The more motivated employees will appreciate you taking the effort to help them, whether it’s providing training materials or paying for classes.
Encourage communication, and demonstrate it
This can be everything from having an ‘open door’ policy and being willing to hear from employees to sharing information about company performance.
Recognize the need to juggle personal/family needs
This can include allowing employees the flexibility to modify their schedules for doctor appointments or school events. While it’s important that a project stays on schedule, being able to trust your employees to get the job done – and a flexible schedule – goes a long way in making them feel appreciated.
Some employees prefer being given kudos in private. Other employees love being recognized in front of their peers. Learning which area appeals to each person can show respect and also show that you take recognition seriously.
Small businesses seeking funding for employee retention or other programs can consider contacting Gray Hill Capital.