Employees quitting jobs is a serious problem and an unfortunate reality that local small businesses have to face. It cost money, a lot of it. Having poor employee retention can cost a business so much that it can negatively impact its operations and projects. There are hiring expenses, which cover the creation, publication, and promotion of job ads. Then there are also the onboarding and training costs in which you need to spend money on the equipment and materials.
And the one hidden impact of poor employee retention: productivity nosedives. You can expect crippling consequences for your business if you have high employee turnover rates. The more people leaving your company, the more the other employees get worried about your reliability. This can affect their productivity levels, and worse, it might also force them to find a more stable work environment. If you’re currently having problems with employee retention, following these smart strategies can help you reduce costly turnovers.
1. Keep them motivated with incentives
Giving incentives for achievers in your team should not always be costly. You can keep them motivated on their job by taking them out for lunch or dinner or adding paid time off (PTO). You can also create an employee of the week or month program to acknowledge the best performers.
Other creative employee incentives that won’t ruin your budget include giving gift cards and coupons such as concert tickets, magazine or app subscriptions, or car wash. The cost of these incentives combined is no way more expensive than losing valuable employees and repeating the recruitment and training process multiple times a year.
2. Invest in the best tools and services
Getting the best tools or outsourcing services cannot only make the work easier and more comfortable for your employees. Doing so also allows your business to function in the right direction with the appropriate resources. Plus, you can have more flexibility in addressing your employees’ needs and ensuring that they’re only working on tasks included in their job description.
For tools, it’s recommended to have at least the top picks like project management, team communication, time tracking, and marketing software. If you’re running a local restaurant, it would be smart to invest in a point of sale (POS) system to keep track of payments and sales better.
As for outsourcing services, the most common ones include administrative tasks, financial management, marketing, and even legal service. For example, if you’re running a dental clinic, acquiring a dental specialist accountancy service can ease you from the repetitive and time-consuming work of preparing payroll, managing cash flow, and even tracking budgets.
3. Create opportunity for advancement
Having the best incentive programs or equipment won’t make your employees stay for longer if they don’t see a part for promotion or career growth. This can depend on the type of local business that you have or the situation. Perhaps the next step is a big one, or the roles are already filled. In such situations, think of alternatives that allow your employees to move upward.
If you can’t give out a senior position, you can reward strong employees with new responsibilities and better incentives. This can allow them to develop new skills and experience and earn more satisfaction with their jobs. Or, you can send your best performers to workshops, seminars, or conferences for their professional growth.
4. Create some fun
Creating an enjoyable and happy work environment is one of the most overlooked aspects of employee retention. If executed right, this can be the greatest asset of your local business. In fact, studies found that employee happiness is directly associated with the company’s bottom line. Common strategies include giving meaningful perks, investing in your team’s professional and personal growth, and offering flexible work schedules.
But apart from that, there are more fun and creative ways to cultivate better engagement and keep your employees happy. You can have a game or breakout area, where your team can have fun or relax. You can have nights out or team-building events to form relationships outside of work. Or, you can simply celebrate birthdays or work anniversaries to make your people feel more valued.
For your local small business to thrive in the vast, competitive market, you will need loyal and the best talents in your team. You need to keep them in the company for as long as possible and avoid losing money and resources every year. Training new employees isn’t just costly, but it can also mean more errors and adjustments in almost every aspect of your business.
