Employee turnover is a big problem for businesses and it can cost you a lot of money. If your employees are always leaving, and you’re constantly bringing new people on board, you will have to pay the costs associated with hiring and training people on a regular basis.
The new employees will take some time to get used to the job and start working at maximum efficiency, but if they’re leaving before they even get to that point, productivity is going to take a hit. It also makes it very difficult to build a team that works well together if people are not sticking around long enough to form good working relationships.
You also gain significant financial benefits with increased employee retention. It costs nearly twice as much money to interview, hire, and train a new employee than to keep an existing one. You could also gain tax benefits from improved employee retention such as an ertc tax credit 2022.
That is why you need to find ways to keep your employees around for longer and reduce turnover as much as possible. These are some of the best ways to improve employee retention in your bootstrapped business.
Fix Your Hiring Process
If a lot of people are leaving the company, it might be because you’re hiring the wrong people in the first place. If you are choosing people that are not a good fit for the business and they don’t suit the company culture, they are not going to stay with you for a long time.
But if you change your hiring process and make sure that you’re bringing the right people on board in the first place, you should see a big improvement in employee retention. You might not think it, but the chick fil a hiring process is a great example to follow here. When they are hiring employees, they focus on the normal stuff like work ethic, but they also put a lot of thought into the core values of the company.
Community outreach and strong team bonds are both important parts of their company culture and they will look for people that mirror those values when they are choosing candidates. It’s important to look at experience and qualifications, but if you want people to stay, you need to find people that align with the core values of your business.
Give Good Benefits
Employees are going to leave if they can get a better deal elsewhere, it’s as simple as that. If other companies are offering better salaries and better benefits for the same position, employee turnover will be high. That’s why you need to invest some money in your employee benefits and offer a better package. This stops them from looking elsewhere and it shows them that you value them, which is so important.
Offer Development Opportunities
People don’t want to stay in the same position forever, they want to progress. If you don’t give them the chance to do that, they will leave. That’s why you need to invest in employee development by giving them training to improve their skills. Promoting promising employees is important as well, so whenever you have a position available, appoint from within the company rather than hiring somebody external.
Employee turnover could be costing your business a lot of money, so you need to make these changes to fix it right away. Talent retention should be a top priority, so figure out the best ways that work for you to retain top talent.