Having to constantly replace your best employees can be costly to your organization. That exact figure might vary, but experts estimate that a single employee leaving can end up costing about 33 percent of that employee’s annual earnings, once you’ve tallied up expenses like recruiting fees, hiring temporary replacements, the lost productivity, etc.
It makes sense, then, that you’d want to do everything possible to reduce turnover and retain your employees. It’s a delicate balancing act you’ll have to follow in order to keep your best employees on board and maximize their utility, but if you follow some of these tips, you’ll be giving yourself the best shot of getting it all done.
Hire People Who Fit Your Company Culture
One big reason employees leave is that they just aren’t the right “fit” for the way you do business. This causes them undue strain, and they usually end up quitting because of how they clash with the work environment. You can avoid this outcome by making your hiring process as stringent as possible. Define all the criteria you think will make an ideal employee clearly, and screen applicants thoroughly based on your criteria to ensure you have the right hires.
Fire People Who Aren’t A Good Match
Conversely, you’ll want to weed out current employees who don’t fit with your organization and, regardless of their actual competency, aren’t benefiting the company because of the way they clash with the culture. You’ll have to cut them loose, but be sure to do it by the book. Employment experts like the Law Office of Omid Nostrati can tell you all about the time and costs of wrongful termination lawsuits, so it’s best not to go down that path if you can avoid it.
Improve Your Communication
Employees tend to get “fed up” with a job when they feel that they aren’t able to communicate with higher ups or that the responsibilities expected of them are unclear. You can fix this if you’re in charge, by putting the focus on clear communication between your entire team, learning how to give and take appropriate feedback, and ensuring that all your team members know what you want them to do and how it’s supposed to get done.
Offer Competitive Compensation
If they aren’t getting paid well, employees are liable to leave (even if they do really love the job). You’ll need to keep your compensation packages up to date with what’s current in your industry, and be sure to reward employees who stand out so that they know their efforts are appreciated.