How To Improve Employee Retention Rates In Your Small Business
The past few years have brought forth many changes when it comes to both employee attrition and retention - including trends such as ‘the great resignation’ and ‘quiet quitting.’ As a result, it's hardly surprising that experts predict that talent retention will be the biggest concern for businesses over the next decade.
Given that the average cost of losing an employee is 33% of their annual salary - this is not only a practical worry but a financial one too. Simply put, businesses that do not have the staff to manage their workload are on a dangerous path.
With that in mind, here are some simple strategies you can use to improve employee retention rates within your business.
Provide them with growth opportunities.
One of the biggest reasons why an employee will leave a role is because they believe there is little room for development (personal and professional). As a result, you should have a system in place that gives your employees the chance to enhance their skills and broaden their knowledge. This is a process that should be kickstarted as soon as they join your team and should continue throughout their employment.
You can achieve this goal by using tools and software to clearly outline the employee journey - i.e., the steps they need to take to move up in your business. You can find out more about this process here https://www.learningbank.io/employee-journey.
Create a positive workplace culture.
When hiring new employees or simply trying to keep them onboard, the culture within your workplace plays a vital role. When you create an environment that feels hostile or overly competitive, employee relationships suffer, and so do enthusiasm and productivity levels. As a result, now is the perfect time to work on improving company culture. This can be achieved by promoting collaboration and communication between employees.
Provide your team with new challenges.
Employees thrive when they are presented with a challenge - as this gives them a chance to build upon their skills. Furthermore, whenever they overcome a challenge or tick another goal off their list, they’re filled with a sense of accomplishment, which increases the chances of them staying within the role.
On a similar note, incentivising certain goals or challenges can also work to improve employee retention rates. For example, you may offer them a pay rise once they reach a certain sales goal. Not only will this work benefit your business, but it will also ensure they remain engaged.
Burnout is another common reason why people leave their jobs, likely due to the fact that we place a greater emphasis on wellness than we did pre-pandemic. To put it simply, employees are no longer willing to stay in roles where they feel overburdened or overstressed. Furthermore, as burnout causes efficiency and productivity rates to plummet, it's crucial that you tackle this issue with a sense of immediacy. Burnout can be reduced in a variety of ways, such as by ensuring all work is fairly delegated among your team, or investing in technology that automates tasks and reduces their workload.