Employee turnover can cost a company up to two times an employee’s annual salary. In fact, the costs can be even more for key positions or those, like sales, that help to generate revenue.
It stands to reason, then, that employers want to reduce employee turnover as much as they can. They want to keep productivity high and turnover costs low.
But what are the best ways to reduce employee turnover? Here are three.
Assess Carefully for Both Fit and Skills
Most job interviews, understandably, focus primarily on skills. The person hired, after all, needs to be able to perform the job well.
But fit is also a key determinant of how long an employee will stay. Fit includes the ability to fit into the company culture and have good relationships with managers and colleagues.
So when you advertise for the job and interview, assess fit as well as skills. Is your workplace full of North Carolina basketball fans, for example? Work March Madness into one of the interview questions and see what happens. “If you were on a basketball team, who would you be?” gives insight into what an employee thinks their strengths are.
Another strategy is to ask current employees for referrals. Friends and family members provide a high likelihood of cultural fit.
Make Sure Employees Are Appreciated
Workers need to know their work is appreciated. It helps to have specific plans to make company appreciation known. Otherwise, the company may never express appreciation, as managers are busy with everyday tasks.
Perhaps the most productive person in a given month gets a gift certificate. Maybe every Friday could be donut day. Work up a reward system that signals appreciation and build morale.
Know Your Employees’ Goals
Employees need to grow and develop to be happy. Promotions are welcomed by most people. Employees may want a chance at different assignments. They may see their own strengths quite clearly and want more chances to use them.
It’s a good idea to build in goals and development plans into annual performance appraisals. It keeps employees motivated. Some companies have employees do a performance appraisal of their strengths and weaknesses at the same time as their managers do. Then the two discuss it.
Whatever you do, don’t neglect a development plan assessment. If employees are happy where they are, fine. You’ll know that as a result of the assessment. But employees who aren’t fulfilled where they are will likely contribute to your turnover costs down the line.
Contact a Staffing Firm Today
Do you need to assess employees for fit and skills, or need some retention ideas? We can recruit and develop a plan. Debbie’s Staffing is here to help. Contact us today.