Your team can make or break your business, which is why you took the time to carefully interview and select your employees. We all know that hiring employees is a financial investment. It costs money to recruit, conduct interviews, and train new employees, which is why high employee turnover rates can be so detrimental to a company. Financial considerations aside, employee retention is also crucial for a business because valuable time is spent finding employees that fit within your company values. It is important to have a team of people that work well together and have similar goals and mindsets. You took the time and invested the money to build a great a team for your business, and you want them to stick around. Here are 5 ways to encourage employee retention in your small business:
1. Let employees have some control
Lack of control in a job can lead to employee depression and a study from the Indiana University Kelley School of Business has even linked lack of control to an earlier death. It’s safe to say that both of these consequences can lead to employees leaving their jobs. Offering employees control over scheduling, decision making, and their work environment can help to ensure they will stay with you for the long haul.
One option for offering control is through allowing employees to telecommute or utilize a flex hours system. This not only gives the feeling of control necessary for employee health and well being, but it can also increase employee retention because it allows employees to better juggle other aspects of their life, such as family, alongside their job.
2. Have a leadership team that employees can trust and have confidence in
Think about if you have ever been asked to follow or trust someone. Are you more likely to do so if you have confidence in that person’s experience, trustworthiness and knowledge? Yes. The same thing goes with employees in a business. It is important for employees to have trust and confidence in their leadership team. They should be able to trust that their managers are looking out for them and that the company is headed in a positive direction. Nobody wants to be on board of a sinking ship.
As a leader it is important to build trust and respect amongst your employees by listening to their opinions, respecting work schedules, and letting them know that you care.
3. Offer small perks and incentives
Who doesn’t love little extra benefits? We all appreciate it when hotels have freshly baked cookies in the lobby or a restaurant gives you dessert on the house. Even if they aren’t huge gestures, little perks and incentive programs can make the workplace much more enjoyable, which is a great way to increase your employee retention rate. Perks can range from things such as snacks and coffee in the break room to things like gym memberships and financial reimbursement for schooling. What perks you offer will depend on the means of your business and what your employees are interested in.
In addition to perks, incentives can also be helpful. Not only do incentives help to lower your employee turnover rate, they are also beneficial in regard to the quality of work being completed. DCR Strategies Inc. states, “Properly structured incentive programs can increase employee performance by as much as 44%.” Incentives can be individual or group based, and they don’t always have to be financial!
4. Make sure employees know their work is meaningful
Having work that is meaningful can mean different things to different people. It’s important to feel that your job is meaningful both to the mission of the company, and that it is valuable to the greater community. People want to feel that their job has a “higher purpose.”
In order to foster this sense of significance, make sure that employees are aware of the company’s goals, vision, and values. Offer opportunities for employees to voice opinions and ideas. Take time to look and celebrate how the work of the company is helping others. This could be accomplished by reading customer testimonials, listening to employees share stories of helping customers, or anything else you can think of. The important thing is letting employees know that their work matters to the company and has value.
5. Recognize employees for a job well done
Whether it is a simple “thank you” or “good job,” or a formal awards ceremony, recognizing 
employee contribution and hard work can go a long way toward making the workplace a positive environment and one that people want to work at. When considering employee recognition options, Susan M. Heathfield of The Balance points out, “Fairness, clarity, and consistency are important in employee recognition. People need to see that each person who makes the same or a similar contribution has an equal likelihood of receiving recognition for her efforts.” You don’t want an employee recognition program to become the source of discontent, so be sure to practice consistency.
Don’t let all of that hard work you put into building your team go to waste. Put the time and effort into making your business a place where people want to work and where they feel safe, respected, and valuable. For more tips about having your business run smoothly, contact Lucid Advisory and Finance!
