subject: Employee Retention - 5 Proven Methods to Keep Your Best Employees [print this page] Employee Retention - 5 Proven Methods to Keep Your Best Employees
Voluntary employee turnover was low as America waited through the storm of "The Great Recession." After surviving layoffs and news of record levels of unemployment, employees were thankful to have any job. But as the country emerges from the recession, the workforce may be facing a tidal wave of employee turnover.
According to independent business research company, the Conference Board, job satisfaction levels among American workers is at the lowest level in twenty years.
Even more worrisome is that 22 percent of the survey respondents say they do not expect to be in their current job in a year.
"While one in 10 Americans is now unemployed, their working compatriots of all ages and incomes continue to grow increasingly unhappy," said Lynn Franco, director of the Consumer Research Center of The Conference Board. "Through both economic boom and bust during the past two decades, our job satisfaction numbers have shown a consistent downward trend."
Studies by American Management Association estimate the cost of employee turnover to be between 25 percent and 250 percent of the annual salary per exiting employee. Entry-level, unskilled positions are at the lower end of the cost range, while executive, managerial and sales positions are at the higher end.
The staggering costs associated with turnover make it clear that one of the greatest threats facing employers is losing their best and brightest employees.
While some turnover is unavoidable, a small amount of effort now can make a big difference in employee retention. Here are five key steps you can take now to create an effective employee retention plan.
Start with a solid onboarding and orientation program. The old saying "You never get a second chance to make a good first impression" is especially true with new employees. The highest level of turnover occurs during the first 90 days on the job. The purpose of onboarding is to assimilate the new person into your organization, so make their first days a positive, memorable experience.
Develop a good relationship with your employees. A recent study conducted by Indiana University found that a bad boss is the main reason people quit jobs. A good manager must be a good communicator, clearly communicating expectations and providing encouragement for a job well done. Good bosses acknowledge the work of others and genuinely care about their employees.
Build a flexible workplace. Workplace flexibility is no longer a perk; it's a business imperative, according to the White House. Today's employees want to decide when and where they work in order to balance their personal and professional lives. This flexibility benefits business by increasing productivity, lowering turnover and reducing absenteeism.
Provide career development. One of the primary reasons employees leave an organization is lack of career growth. One study found that more than 40 percent of the respondents would consider leaving their present employer for another job with the same benefits if that job provided better career development and greater challenges.
Pay competitive wages. People stay in jobs because they want to contribute to something bigger than themselves, because they love what they do, or because their job gives them a sense of purpose. But the main reason anyone works is for money; bills have to be paid, children have to be fed. If you're not paying your employees at the same level as your competitors, they will know, and their job satisfaction will erode.
Retaining your best employees is critical to the long term health and success of your business. By employing these five steps, you can help retain your best talent.
For more free tips and tools on preventing employee turnover, contactDoherty StaffingSolutions today.
