Don’t Quit! 3 Ways to Retain your Employees in 2019
Are your employees quitting faster than you can train new ones? Are you having trouble finding employees who will stay for more than 5 years? You’re not the only one. In 2018, the national average turnover rate was 22%, with resignations making up a whopping 16% of it. Layoffs and terminations only accounted for 6%, while retirements made up 1%. What’s more, the average American employee stays at a job for 4.6 years. Millennials and service workers are the ones most likely to leave, typically after just 3.2 years. What do these numbers mean for American companies?
First, hiring is expensive. While figures vary across industries and positions, hiring just one employee can cost between $1,000 and $5,000. This figure includes advertising costs, in-house recruiters’ salaries, third-party recruiter fees, travel expenses, sign-on bonuses, employee referral bonuses, and relocation costs. Filling up a position can also take days, even months. Once hired, there is also a necessary training period before the employee can become productive. Clearly, each resignation represents thousands of dollars in lost investments.
Second, whether voluntary or involuntary, high turnover rates are symptoms of a larger problem. Employees resign when they are overworked, undercompensated, or simply bored. Layoffs and terminations, on the other hand, usually happen due to bad hiring decisions and management techniques. Both contribute to significant losses in productivity and profits.
No workplace is perfect. However, companies with low turnover rates adjust their practices whenever necessary. Below are 3 strategies you can use to retain more employees this 2019.
1. Ramp up your onboarding process
Companies that invest in hiring but not onboarding are effectively throwing their money away. Onboarding matters, for every position, in every industry. If you have great onboarding processes, you can expect to nearly double your corporate revenue growth and profit margins. Employees are more invested when the onboarding process is better. Some of the biggest and most profitable companies in the world tailor each onboarding experience to the relevant role. Onboarding starts even before the employee’s first day, so it’s best to have your complete checklist ready.
2. Provide rewards and advancement opportunities
Employees look for a position where they’ll get a great manager and be part of a productive management culture. This is especially true for millennials, who will make up the largest percentage of the global workforce by 2025. They want to find jobs in companies where they will be given opportunities to learn new skills and advance in their careers. Employers need to ensure that they have plans and opportunities for a long-term career path. And they need to reward employees for their hard work. If you provide this, you can expect loyal employees who will grow the company with you.
3. Introduce flexibility to the workplace
Introducing flexibility to the workplace can immediately improve morale and work-life balance. Managers can implement solutions that will not hurt the company’s bottom line. This includes better time off management, optimized scheduling, and shift swapping. These solutions will not only increase employee engagement but also improve business in the long run. And it is not difficult, as introducing flexibility to the workplace is aided by technology. Today, workforce management software like Tanda can help you manage shifts and schedules.
Read more: Should you approve shift swaps at work?
Invest to retain your employees
Employees give their best when they are trained, valued, and empowered. If not, they look for other opportunities. Some industries are hit harder than others. Foodservice, for instance, has a turnover rate of almost 73%, while the retail industry has a turnover rate of 60%. Investing in workforce management technology like Tanda can instantly help managers onboard, schedule, train, and reward better. It can even help employers communicate better through Tanda Chat. Managers will appreciate the efficiency of the system and help them have complete oversight of their staff. Employees will also benefit from the transparency that it provides.
No business grows without well-trained and dedicated people. Genuinely investing in employees and showing them that management is willing to make reasonable concessions helps in fostering loyalty. It also increases your positive reputation as an employer. Once word travels that you take care of your employees, it will make it easier to attract the best talent. With enough planning and investment in the right technology, you too can lower your turnover rate.