No matter the size of your business you need skilled people to help you grow. And to grow you need to keep these skilled people happy. Here are 7 reasons your employee retention rate is low—What you might be overlooking.
A couple months ago we talked about the cost of a bad hire. This got me thinking, what if the bad hire isn’t a bad hire? Maybe it’s the company culture. As Michael Jackson once said, “ I’m starting with the man in the mirror”… Start with the company in the mirror. Look at your employees. Who has been there the longest? Are they happy? Now, look at your newest hire. Are they excited to be there? Use these people as keys on how to develop.
Reason #1- Bad Hires
Are you blowing through your interview process? Checking things off a list? Skills: accounting—check, management—check, public speaking—check. In order to retain your talent, you need to determine passion. Sure, this candidate may look good on paper but what is their work style like? If they are extroverts in a cubical farm they probably won’t last. The same goes for introverts in a rowdy co-working environment. Take a look at the community that has developed in your company and find someone who fits in. This might be why your employee retention rate is low.
Reason #2- Organization
When your new hire comes in for their first day, do you have a training program, or a desk set up for them to work at? No one likes wasting their time. Showing up to your first day of work to twiddle your thumbs for an hour and a half while the manager calls the IT guy to get your computer and phone set up sets a bad precedent for how the rest of the company works. Get your sh!+ together. Make sure your new hire is aware of what is expected of them and be sure to communicate clearly throughout their employment.
Reason #3- Validation
Humans have a greater sensitivity to negativity or unpleasant news than positive occurrences. This makes it easier to focus on those negative happenings. BUT that could be why your employee retention rate is low. Instead of harping on mistakes your employees might have made, make sure they know you recognize the things they are accomplishing. I’m not suggesting you ignore the mistakes, but make sure its constructive criticism so they can use it as a lesson for next time. Validation converts to encouragement, which in turn converts to higher moral in the workplace and happy employees.
Reason #4- Set Goals
Now that your employees feel encouraged. Give them something to work towards. Context is key! Why are they doing what they’re doing? If you tell someone to move 150 boxes from one side of the room to the other they might reluctantly start on this task and give up half way through. But if they know from the beginning that these boxes are covering a window that will bring some much-needed light into the office they might work more effectively or with more motivation.
Reason #5- Employee Development
If you want your company to grow you should want your employees to grow. Offer them opportunities for them to learn new skills. Whether it’s a sponsored course or having another employee mentor them. People have a fear of becoming complacent, if you put them in an environment where they can thrive and learn new things they won’t have a reason to leave.
Reason #6- Work-Life Balance
LET THEM LIVE. Regardless of how passionate someone might be about their job or your company they still need to be able to unwind. Let them decompress after a big project, not halting work altogether but give them little opportunities to take a break and play a game of foosball table or cornhole. Once they are refreshed they can come back and work hard again. Let them take their vacations without company distractions. Let them have a life outside of work.
Reason #7- Incentives
Monetary or supplemental. Set up prizes for the sales person with the highest referrals. These prizes don’t have to be cash, it could be a free lunch or a random work from home day. They can even be as inexpensive as printing out superlative awards or dollar scratch offs. Any small act of kindness can easily turn someone’s day around. Keeping employees happy and giving them something to look forward to will keep them around the office.