by Ezra Moffat, Consultant
0333 400 7920 | firstname.lastname@example.org
Reports suggest that the average cost of replacing an employee is around £30,000.
Along with the cost that comes from the loss of productivity and management time spent on recruitment, it shows that finding ways to retain good employees is important for all business.
Employers need to look at ways in which they can improve their employee retention rates.
Here are six areas to consider for your business:
A well-designed induction process can help an employee to settle into their role from the very beginning of their employment.
The induction process should be both formal and informal allowing time for the new employee to meet those they will be working most closely with.
It should give the new employee a good insight into the business as a whole, the culture and values of the business and overarching business goals.
You could consider a buddy system, where one existing employee is allocated to helping the new employee settle into the business.
EmployAssist can assist you with designing a meaningful induction process.
Employee Engagement Surveys
Many employers view employee engagement surveys as being a waste of time. However, they are still a useful tool to understanding the key drivers influencing employee engagement (good and bad) and finding out what employees feel the company should be offering to them in order to make them more likely to want to stay with the company. Used well, it’s a great tool for communicating, generating new ideas and uncovering areas for improvement.
Although there may be things suggested that are impossible for employers to accommodate due to financial constraints (like monthly retreats to Ibiza), there are some simple suggestions that have come out of employee engagement surveys, such as holiday buy back schemes. These allow employees to buy back a certain number of days holiday on top of their usual holiday allowance.
If you are unsure how to conduct a staff engagement survey, EmployAssist can provide guidance and assistance, or even conduct the survey on your behalf.
Conducting regular salary reviews is another important retention tool, often overlooked for fear of having to increase salaries at an unsustainable rate for the business.
However, it is still important to be on the pulse and understand where your salaries sit within the industry and current market against competitors across your industry.
Employees will be doing their own checks, and if they see that they are able to get a better salary elsewhere doing the same work, it can certainly be a strong pull for an unsatisfied employee to look to go and work for your competitor.
Is your benefits package competitive? What are your competitors offering that you are not?
Employee benefits are wide-ranging and can include bonus schemes, private medical cover, more generous pension schemes, wellbeing initiatives and Employee Assistance Programmes (EAPs).
EAP provide employees with support for a range of different issues including mental health support.
Line Manager Training
Increasingly, employees leave companies not because they do not like the company they work for but because they have a poor working relationship with their line manager.
Line managers often have high technical skills for their jobs but can sometimes lack the interpersonal skills required to be a line manager, or shy away from dealing with issues within their team.
Providing your line managers with training and toolkits on how to deal with internal conflicts, giving feedback and ensuring that company policies and procedures are carried out correctly and consistently can help to reduce retention in teams that feel undervalued by their manager.
Exit interviews are a very useful way of finding out more information about the reasons why the employee has chosen to leave the business.
Employers should be open to hearing both positive and negative feedback and should look to take an objective view of whether the negative feedback is warranted. If it is, you should review those areas.
Whilst it can be difficult to keep all employees engaged, particularly in larger companies, there are many areas that employers can look to review and improve upon that are likely to help you to retain your top talent and good employees.
For more information on improving your employee retention or assistance with any of the areas covered above please contact EmployAssist HR.