Tips for keeping talent in your organization & avoiding high employee turnover costs.
The economy is improving and there are more job openings being posted every day, with 5.1 million jobs listed at the end of February. Many companies are facing the fact that some of their best employees are going to be looking elsewhere. A blog post from TLNT on the cost of turnover this week details the mistakes many organizations make in offering tiny 3% raises to employees who can easily go somewhere else and receive more than five times that amount. Meanwhile, these same companies will spend far more replacing that talent.
If you can’t convince the powers that be to offer raises at competitive market rates, how else can you keep employees from jumping ship? For some, these may offer a compelling case to stay even in the absence of a significant salary jump:
1. Offer Irresistible Perks
Go beyond free snacks here to think about things that truly impact people’s lives, like daycare, flexibility, and liberal vacation/sick time policies. Sometimes it’s not worth a $10,000 raise to lose extra time spent with your family or the peace of mind that you don’t have to drag yourself to the office when you’re fighting the flu to avoid criticism.
2. Build a Great Company Culture
There is almost no more compelling reason to come to work every day than enjoying the company of those you work with, respecting them, and feeling the sense of camaraderie that comes with working towards a common goal together. As I’ve written before, company culture can be one of your greatest competitive advantages, so be proactive about building and preserving it—it will help you fight employee turnover.
3. Invest in Training and Development
Educating your employees and helping them to learn new skills will not only make them more valuable to your organization, but it will also help with retention. Employees may trade in a fatter paycheck for the opportunity to learn on the job in order to move up in your organization, or eventually, in another. Presenting new opportunities and challenges will also ensure that boredom doesn’t set in and leave workers looking elsewhere for stimulation.
4. Promote from Within
When employees see that hard work (and results) are truly rewarded at your organization, they will be more likely to stay on and strive to move up the ranks. Continually bringing in outside talent to manage those who have been around is demotivating, will cause people to feel slighted, and may push them to jump ship.
5. Hire and Retain Excellent Managers
Employees’ relationships with their direct supervisors can make or break their entire experience at your company. Having a boss who cares about your development, inspires you, and recognizes your accomplishments is truly priceless.
Even if your organization does offer competitive salaries and raises, it’s still important to pay attention to the elements outlined above. A higher salary makes an impact for a very short time, but once the employee gets used to the new paycheck, it loses its effect and you’ll end up back where you started.