Employee Turnover is One of the Biggest Profit Drains
Employee turnover is one of the biggest drains on the profits of any company. The cost of advertising for positions, interviewing, hiring, training and orientation are immediate hits to your company budget. Companies can beat turnover rates by retaining employees for the long-term. The number one way to retain employees and beat turnover is to inspire loyalty and enthusiasm in your employees.
Employees who have an emotional attachment to their company, coworkers, bosses and the work they do will stay with a company longer. These employees are invested and engaged, they’ll weather ups and downs and stay committed to their work.
The following tips can help you increase employee loyalty and beat turnover.
Do Something That Matters- Charitable works done either as a team or as part of the company platform give people a little extra to work toward. Knowing that the company you work for is dedicated to improving the world is a major factor in why people stay with their jobs.
Connect Your Staff to the World They Are Changing- No matter what product or service your company supplies, it is changing the world. From the tiniest nail to the biggest machine, your company makes a difference. Regularly invite employees on trips to see how their work makes a difference in this world.
Know and Appreciate Each Employee- Every employee wants to feel like they are important to the daily success of their company. No one wants to feel like another replaceable cog in the wheel. Talk to your employees. Know their names. Understand their challenges and gifts. When they succeed, celebrate them. When they fail, give them the freedom and encouragement to stand back up and try again. Show your employees that you appreciate them and care about them and you’ll be rewarded with their loyalty.
Create a Warm Company Culture- Your company culture is the real driving force behind any long-lasting success. When you have a company culture of pettiness and bitter competition, you’ll have employees leaving in droves. Instead, create a company culture that fosters creativity, encourages honesty and celebrates hard work. People will be begging to come work with your company.
Neutral Ground- If or when disputes occur, be neutral. Don’t immediately dismiss concerns or jump to take sides. Carefully listen to the issue. Let your employee know that they’ve been heard. Assure them that you will fully research the situation and get back with them. Then, follow through on your promises. Employees that feel they are treated fairly are more likely to stay with companies for years to come.
Create a System for Disputes & Conflict Resolution- Even companies with a great culture and a close-knit team of employees will experience conflicts and disputes. Set up a system to fairly handle these issues thoroughly. Without a system in place, decisions may seem to be based on favoritism. Employees need to see fairness and respect in the companies they work for.
Treat Employees Like Adults- All of the people working for you are adults, so treat them that way. Don’t coddle, micromanage, or discredit your employees. You’ll only drive them away. Show them respect and give them responsibilities. Listen to their ideas. Value their time. Be honest with them about company issues and expect honesty in return. You’ll spend a lot less time supervising and a lot more time getting your own work done instead.
Create Personal Relationships- Nothing keeps employees loyal like a personal relationship with their boss and coworkers. When you spend so much time together, as many of us at work now do, you’ll want to create relationships with your employees. These bonds will grow productivity, help lower conflict, and increase overall happiness at your company. Who wouldn’t want to work in that kind of atmosphere?
Reward Reward Reward- Great ideas need to be acknowledged and rewarded. If someone in your company tweaks a system or process to save the company time or money, acknowledge their work. If something that makes your company stand out or win awards, take them and/or their team to receive the accolades. Acknowledge any accomplishments or contributions that help your company, do this publicly and privately.
Publicly send a memo or make an announcement thanking the employee. Privately send a personal thank you card with tickets or a gift card. Employees who feel appreciated and acknowledged are more likely to stay with a company for many years.
Simple Steps Can Create Loyalty & End Turnover
Companies thrive on engaged and active employees. Each employee you lose will cost your company time, energy, money, and could even upset the balance of your company culture. To lower and even end turnover rates, work towards inspiring company loyalty. Employees who feel connected to their work, employers, and coworkers are much less likely to leave. Implement the simple steps discussed above and you’ll start seeing a big change in your turnover rates.