(Newswire.net — October 4, 2021) — Annual 81% is considered a good employee retention rate. This means that it is normal for 11% of employees to leave their company every year. The hiring process takes weeks and the training process takes months, and most of it goes in vain when they don’t work for long.
You can’t keep hiring and training new people every month. It takes time before you can understand their potential and rely on them. This is why it’s important to keep the employee retention rate as high as possible for the faster growth of your business. Here I’ve discussed how you can do that.
Understand Issues of Your Industry
Employee churn rate is not the same in all industries. Some industries rarely see any professional leaving a firm within five years while some have to find new professionals every month. According to GetVoIP.com, the industry of accommodation and food services has the highest churn rate at 50.9%.
You need to see what issues employees in your industry face and what could be the reason behind their quitting. Once you understand the problem, you might be able to come up with an efficient solution. If they get bored with the repetition of tasks in their jobs, you can try to add some administrative responsibilities.
Hire the Right People
Don’t just hire anyone because they have the right skillset. The most skilled person might not be the most professional. You should take time to scrutinize their skills as well as personalities. See how many jobs they have quit in the past and what were the reasons behind it. If possible, have a psychologist sit in the interview to help you make a more informed decision.
You should try to plan the hiring in advance and always stay in touch with potential candidates, so you don’t have to hurry through this process. Conduct interviews in multiple phases and always discuss their goals and how long they plan to work with you. If they are too ambitious or not ambitious at all, they aren’t very likely to stay.
Appreciate the Good Work
Appreciation can do wonders. It’s not just kids that need positive reinforcements. Even the professionals at senior managerial positions need appreciation to keep doing the good work. Just paying a good salary and additional incentives is not enough. You should publicly praise and reward them to make them feel special and encourage others.
The sooner you appreciate them, the better. If someone makes a mistake, help and motivate them to do better. Pointing out their mistakes in front of others and discouraging them for mistakes will only make them leave your company. If the goal is the growth of the business, then you need to increase the retention rate by improving your employees.
Build a Friendly Culture
No one likes a strict environment. Discipline is one thing, but strictness is different. You should try to keep the environment as lenient as possible. Your firm is not an army unit that has to be perfect with discipline. Employees have to spend their full day in the office. It would be unfair to ask them to always stay sharp and worry about unnecessary things.
Offer Development Opportunities
Your goal is to earn money, but just money is not enough for employees. They need growth in earning as well as learning. They want to be able to proudly showcase their skills and how much they have learned. Encourage everyone to learn and offer a promotion to those who prove themselves best. No one wants to keep working in the same position their entire career as just the increment is not enough.