Employee retention strategies that don't cost a fortune
When it comes to keeping your employees happy and loyal, there are a great deal of employee retention strategies to choose from.
However, some methods can often turn out to be an expensive endeavour, only possible if you have a high profit margin.
Today, there is substantial evidence that organisations—big and small, high tech and low tech, locally managed and internationally competitive—are experiencing a retention crisis.
Most managers will have heard the terrifying statistics on the costs of replacing employees. These have been estimated conservatively at 50% to 60% of an employee’s annual salary, with the total costs associated with turnover ranging between 90% to 200% of annual salary.
Organisations are recognising that they have two options: continue pursuing expensive recruiting plans that have an uncertain future, or establish effective retention strategies designed to retain the existing workforce.
But what’s the best way to retain talent when you need to keep costs low? Here are a few of the best low-cost employee retention strategies for you to try.
Have an open-door policy
A happy workplace is an environment where employees feel comfortable voicing their own ideas and concerns. By setting the right tone, you can let your employees know that you welcome their thoughts for improving business operations and workplace culture.
Providing and asking for regular feedback can also be useful for both parties. You could implement an ideas board, a suggestion box, or a monthly Q&A meeting with company leadership.
Open lines of communication
Build trust with your employees by being transparent in decisions related to rewards, recognition, and employee development. Conducting employee surveys can make your staff feel comfortable voicing their opinions and ideas.
In turn, implementing your employees’ ideas will create a sense of ownership and responsibility.
Similarly, check in with your employees from time to time to provide your own feedback.
Emphasise health and wellness
In order to achieve high levels of employee satisfaction, it is important to consider promoting a healthy work-life balance. Managers today have come to realise that promoting the physical and mental wellbeing of employees is more important than ever before.
If you have a spare meeting room, putting together a few couches and a coffee table, with a few books or board games is a good way to create a quiet, relaxation area. Employees, like everyone, may work more productively if they have access to occasional quiet thinking time, away from their desks.
Encourage a relaxed dress code
While business dress makes your company appear professional and well-respected, it does not necessarily mean that employees need to dress smart every single day of the year.
It can boost morale to encourage your team to have a relaxed dress day or, if they are not meeting with anyone external, to wear more casual outfits than their usual work attire.
This may sound simple but asking your employees how they prefer to be recognised can prove to be beneficial when it comes to employee retention. In many cases, a simple ‘thank you’ goes a long way.
This is especially true when employees are praised for their good work in front of their peers. Your gesture lets employees know their unique contributions and positive attitude make a difference for your company and team.
Conduct ‘stay interviews’
A stay interview is an informal review in which the manager and the employee sit down to review progress, ideas, and feedback. This gives you the opportunity to learn what really matters to your employees.
Stay interviews reduce the likelihood of turnover and help in boosting engagement. If your employee has an issue, wouldn’t you prefer to have the opportunity to fix it before they hand in their notice?
Value your people
When you are considering a new employee retention strategy, don’t forget that many can be done for free or at a very low cost.
Retaining your employees is a valuable activity to focus on; it means turnover rates are kept low, you reduce the chances of personnel loss, and it also keeps the morale of the team high.
Employee retention doesn’t need to be complicated; it really comes down to valuing your employees and—most importantly—letting them know they are valued.