Employee retention is vital for the long-term health of a business. Research demonstrates that the cost of employee turnover is 16% of annual salary for a low-level employee, 20% of salary for a mid-level employee, and 213% of salary for the highest-ranking positions.
But employee retention isn’t just about numbers. When your company retains your best performers, you are better able to attract new talent and grow.
Here are eight things you can do to keep employees:
- Set up a great onboarding process. The moment an employee walks through the front door—and even before—your company starts to make an impression. Be welcoming, offer opportunities for socialization with co-workers, and provide them with structured mentorship as they settle into their new position.
- Provide employees with salaries and benefits that are competitive. Although employee retention isn’t just about finances, you should still make sure that you provide salaries and benefits that exceed industry averages. Offer salary increases when appropriate.
- Establish and convey your organizational values. Many organizations operate with unique values at their core, but fail to effectively communicate them to employees on a regular basis. Sit down and seriously think about what makes your company different. Why should an employee want to work with you rather than one of your competitors? Then, make sure that unique selling proposition as an employer comes through in your workplace.
- Evaluate employees’ performance, providing them with constructive feedback. Some employers operate under the misconception that employees dislike feedback. Actually, most employees (and especially top performers) want to receive regular feedback. They appreciate compliments and also want to know where they can improve. Institute a system for providing all employees with consistent and constructive feedback.
- Offer employees opportunities to grow within your company. When employees feel as though they can’t advance, they’re likely to leave. Show your employees potential career paths within the company and provide them with mentorship and training so that they can improve. When they see colleagues advance, they realize that it’s possible for them, too.
- Communicate with your employees about your organization’s status. Employees, especially millennials, want to feel as though they are part of something meaningful. To build a sense of camaraderie within your team, send employees regular updates on the company’s successes.
- Give employees access to flexible work options. If it’s possible for an employee to work from home part-time—or even full-time—you should seriously consider offering them that option. Most employees, especially those with young children, appreciate flexibility. Studies show that work-from-home employees are actually more productive on average. Even if you just offer your employees one work from home day per week, that will be appreciated.
- Ask employees what they need to succeed. Employees appreciate opportunities to provide input. Ask for feedback regularly. When you implement changes based on employee feedback, let them know.
As an employer, there’s a lot you can do to ensure that your best employees stay with you and thrive. Implement these best practices to improve your retention rates.