Holding onto employees during a time when unemployment is near record lows can be difficult. You're going to want to keep your employees especially satisfied these days.
There are three million people leaving their jobs in the United States every month! What is even more alarming is that nearly a third of all hired employees leave their job within the first six months.
This is an ongoing challenge for employers after all that effort they put into hiring.
With statistics like these, it is important to put together an effective employee retention strategy. Employee turnover is not cheap. Did you know, you may be looking at a cost 2x what you'd pay an ex-employee's salary to replace them?
Here are some timeless strategies to hold onto employees in your department.
Offer Competitive Salaries and Benefits
The number one reason why employees leave a company is the pay was not enough for them. How much an employee gets paid is very important because it is the primary reason why they are working at your company in the first place.
They have life expenses and need to pay for them somehow. If you raise salaries to become competitive with those offered by other companies in your industry, you have a better chance at holding onto your professional talent. You can find some great salary data specific to your company's industry and location HERE.
Giving people more money is not the only way to hold onto employees. You can also offer more benefits if you find increasing salaries too much is simply out of your budget. Offer more vacation days, opportunities to work remotely, and others. You need to stay flexible, since you know how much time, energy, and money goes into hiring someone.
Make Sure You Hire the Right Candidate
Since nearly one in three employees leave their job within six the first months, it is important to hire the right fit for the job from the start. Your interviewing process needs to be really good at vetting candidates. It should also be realistic with candidates in what they should expect. You need to be TRANSPARENT and honest to hold onto the best employees.
Give Employees a Proper Work/Life Balance
Don't forget: your employees have many interests, families, and plans that do not involve your company.
If you want to keep your talent, you need to make sure you are allowing them to have a healthy work/life balance. If you are continuously asking them to come in on the weekends or work late, they will become bitter and leave. We have seen this increasingly in the Millennial Generation and Gen Y. If you have regular periods of overtime work that will be required ie: month-end close, quarterly tax filings, be very clear about what the expectation is upfront.
If you really do need to have someone work those extra hours, either consider hiring another employee to offset the burden others are dealing with, or offer your current employees more money to make it feel more worth their time.
These are some of the most EFFECTIVE employee retention strategies you can employ in your department to hold onto your talented pool of employees.
These days, employers have to work with employees more and cater to their needs given the low employment rate. When you do, you will have a much better chance at holding onto employees that help your business thrive and bring in handsome profits.
If you need help with implementing employee retention strategies, contact me at The Jule Group. You can also connect with me on LinkedIn or Instagram to hear about any new updates or recruiting market trends. My goal is to bring back that human touch to your hiring process that is often lacking in the recruiting industry. Reach out to start the conversation with me today!
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