Curating a friendly working environment is something that many business owners aim for. Taking your own experiences and learning what to do or avoid is one way for creating a comfortable working environment, but this is not the be-all and end-all of running a company. Even with a comfortable working environment, you may still have employees who are leaving after a short period of time. Understanding what you must do to improve your employee retention levels is critical, so keep reading for some practical tips.
Three Tips For Improving Employee Retention
1. Encourage Open and Honest Communication
It goes without saying, but to understand what is going on with your employees and determine their happiness levels, you need to talk to them. Ensuring your employees are aware of an ‘open-door policy’ is critical and encourages them to come and talk to you should there be anything on their minds.
Having clear and honest conversations with your employees ensures you can act on what they say; knowing what you might need to improve upon is crucial to your growth as a business, both in the short and long term and in retaining your employees during this time too.
2. Offer Employee Benefits and Rewards
Rewarding your employees is something that should be happening regularly. After all, your business would not be functioning the way it is without them! Employees who are recognised for their hard work and rewarded, as a result, tend to work harder and stay in their jobs longer. It is often viewed as a foolproof method of retaining your employees but is not as easy as it first seems.
Naturally, you will want to reward your employees based on their performance in their job roles. Monitoring and comparing their performance monthly or quarterly is crucial when determining what rewards or bonuses they are eligible for.
Having the right tools for monitoring performance is critical and includes performance management software and related platforms. Monitor and improve your company culture with performance development software, and reward your hard-working employees where you see fit. At the same time, you will be going forth with happy employees who are being rewarded for their hard work and who are highly likely to stick around.
3. Leading By Example
Having a leader in any job role is something we have all faced at some point or another and is something that small business owners should consider when making changes to improve employee retention.
Promoting from within your business, rather than hiring externally, is often highly recommended; you will have a devoted employee who knows your company inside and out and is naturally getting a promotion as a reward for their continued hard work. Making the wrong person a manager could have detrimental effects on the broader aspects of your business; ensure you weigh up the pros and cons of making someone a manager, and even offer a trial period to determine whether they are the right fit.
Improving employee retention is a great way to save money and boost customer service. Use these tips to help you reduce your company turnover and improve your internal culture.