It is often said that it's better to retain a quality employee than to try to find a new employee. Makes sense, right? But why? Well, there are several reasons why this is true.
First, from a purely business perspective, it's costly to find and onboard a new hire. Think about the amount of time, resources and money needed each time you secure a new team member. According to a Society for Human Resource Management (SHRM) report, the direct costs for replacing an employee can be up to 50 to 60 percent of their annual salary and the total cost of turnover can range from 90 percent up to 200 percent of their annual salary. Whoa...just think about that for a moment.
Now that you've let those facts settle in for a minute, let's talk about how you can invest in your team and, in turn, invest in your business. Here are three tips for small businesses –
- Tip #1: Think outside of the box. Sometimes small businesses think they may not have the ability to compete with larger organizations when it comes to attracting and retaining quality talent. In today's market, people are looking for more than just your traditional benefits package. Think about what sets you and your company apart and leverage that. It may be your culture, flexible working arrangements, a fully stocked breakroom, or company-paid volunteer hours. Whatever it is, don't be afraid to let people know!
- Tip #2: Don't just assume. As with most things, this is another perfect time not to assume that you know what your team members want. Reach out and ask your staff what they value and see what you may be able to incorporate. Be honest and let them know you may not be able to change things overnight. The fact that you're taking the time to let people voice their wants is a good place to start.
- Tip #3: Stay involved. It seems like the concept of management by walking around (or at least the term) isn't nearly as prevalent as it once was. Despite that, there is still tremendous value in the concept. As the name suggests, this is an opportunity for leaders to get hands-on and see the daily happenings within their company. By talking to team members, gathering their feedback, and acting on it, you are not only enhancing relationships but you are also improving morale and overall loyalty – which can lead to increased employee retention.
We'd love to hear from you! What is your company doing to increase morale and employee retention? If this is something you're struggling with, reach out to us today to see how we can help you!
