You’ve found the perfect hire. That real “rockstar” employee that’s going to help propel your business to new heights. But how do you make sure they stay? With almost 50% of UK staff planning on looking for a new job this year, it’s worth investing some time in your employee retention strategy. Here’s my 7 top tips to help spark some ideas.
PAY CLOSE ATTENTION WHEN HIRING
The fastest way to improve employee retention is to pay close attention when hiring. Be sure to ask great questions to really understand the motivations of any new employee. You need to understand not only where a candidate is now, but where they are looking to go. It’s important to consider not only if you’ll gain long term value from a new employee, but also will they gain long term value by working for you? To paraphrase J.F.K, ask not what your candidate can do for you, ask what you can do for your candidate. If a new hire’s personal mission, goals and values align well with the offer, culture and vision of your company, you’re onto a winner.
TRAIN AND DEVELOP GREAT MANAGERS
The number one reason for most people leaving their job? You guessed it, poor management. A great manager can inspire and lead a team, making everyone in a business feel valued, supported and crucial to the success of the overall mission. In contrast, a lazy and poor performing manager will have employees updating their CVs and browsing job boards in no time at all. What makes a great manager? Honesty, accountability, trust, self discipline and focus are all great qualitites to have. Take a look at this article revealing Google’s secrets to identifying and developing great managers.
PROVIDE CLEAR AND CONSTRUCTIVE FEEDBACK
In today’s fast moving world, waiting until an employee’s annual performance review before giving feedback on their work is no longer good enough. A recent Forbes study found that 72% of those who receive feedback on a consistent basis feel satisfied in their jobs. Of those who lack feedback, only 38% feel happy. Regular feedback and open and honest communication allow you to head off small problems before they become overwhelming.
Feedback doesn’t just have to be for times when improvements are needed. Almost everyone wants to feel appreciated and noticed for a job well done. You would be amazed at the morale boosting power of a simple email or note expressing your gratitude for a good piece of work. Employees who have a clear sense of where they are succeeding and where they need to improve are far more likely to stay with you for the long haul.
LEARN TO REALLY LISTEN
Whilst the truth may sometimes hurt, it will always set you free. All great managers understand that the fastest way to make someone feel valued and to build trust is to actively listen. Unfortunately, by the time you reach an exit interview, it’s far too late to listen to your employee’s concerns. Not only will listening to your employees improve retention of staff, it may also unlock new avenues for business growth and improvement.
Begin to create a culture of two way feedback where employees feel able to honestly express their feelings and concerns without fear of reprisal. If this seems out of reach, fortunately there are a broad range of tools that allow employees to give feedback anonymously. Like stepping on the scales for the first time after Christmas, facing the truth can be scary. It is however vital for the long term health of your business.
INVEST IN EMPLOYEE TRAINING AND DEVELOPMENT
The high performing superstars in your team are always keen to learn and improve. It should go without saying, that if you don’t invest in their development, they’ll soon start to look for another employer who will. With HR Review reporting that the total cost to business of replacing a member of staff as over £30,000, the question is not can you afford to develop your team, but can you afford not to?
Unfortunately, many businesses misunderstand that the egg comes before the chicken and are unwilling to invest in staff. They worry that employees will move onto greener pastures as soon as their training is complete. So long as you offer your employees continuous opportunities to develop instead of the occasional band-aid training day this shouldn’t be a concern. Not only will investing in your staff increase retention, it will also increase employee performance helping you achieve your business goals.
EMPOWER YOUR EMPLOYEES
The more you empower your staff to make their own decisions, the more they will grow and thrive within in their role increasing productivity, happiness and of course retention. Showing employees that you trust them to complete their work in the best possible way will do wonders for their loyalty to your company. Communicate the desired end instead of focusing on the means. Not only will this lead to happier, self starting team members, but it will also free up management time for other tasks.
Consider involving employees in larger business decisions. This will expose you to new angles and insights from those “on the ground” that you may have missed as well as showing staff that their opinions really do matter. Creating a sense of shared ownership of a businesses mission and purpose will do wonders for employee retention.
MONEY STILL MATTERS
Whilst creating a fantastic working environment is a great way to improve employee retention, it’s important to remember that employees come to work to be paid. With salary information increasingly available online and high performers able to increase their earnings by 10-20% just by moving companies, it’s worth reevaluating your pay scheme and asking if you can pay top performers more.
I hope this article has made a light bulb or two go off inside your head! As ever, I’m here to help your business succeed and your career flourish. Feel free to be in touch for anything from recruitment advice, job searching or just a good old fashioned chat on all things work related.