How to Make Employees Want to Stay
The real cost of replacing an employee can be enormous in terms of recruitment, onboarding a new hire, training, lost productivity, lost engagement, lost on-the-job knowledge, lost relationships and potential customer dissatisfaction.
That’s why it makes sense to do whatever possible to retain your employees, according to Mike Turner, Managing Director of You Become. In his latest video he details the hidden costs of losing and having to replace employees.
The following tips are designed to help your organisation boost your retention rate.
Create systems to track the cost of employee turnover
Many companies are unaware of the full cost of employee turnover because they don’t have systems to track exit costs, recruiting, interviewing, hiring, onboarding, training, lost productivity, administrative costs, lost expertise, etc. Such systems will likely involve collaboration between departments such as Operations, Finance and HR.
Benchmark your employee retention rate
Begin by calculating your employee turnover rate, either by department or the entire workforce. Do this by working out your average headcount then adding the total number of leavers. Divide the total number of leavers by your average headcount. Multiply this figure by 100. You can use this to calculate either a monthly or yearly turnover rate.
Benchmark that figure against the national average. In the UK, the national employee turnover rate is about 15% a year, but of course, this varies between industries. Private sector organisations in retailing, call centres, construction, catering and the media have the highest level of turnover, according to Monster.co.uk. Industries with traditionally low turnover rates include legal, accountancy, education and the public sector, it says.
You should also benchmark your employee turnover rate against industries and businesses that are like your own.
Encourage employee feedback
It’s a mistake to assume your employees are satisfied with their work and with the company. Encourage their feedback and use the services of an external provider to conduct regular employee engagement surveys.
Use proven retention strategies
Develop an onboarding process that not only provides new employees with information about their job but also about the company’s culture and how they can contribute. Give new employees plenty of opportunities to ask questions and discuss issues. Match new employees with mentors so they can learn from experienced staff members.
Offer attractive compensation packages that include salaries, bonuses, paid leave, and health benefits. Make sure that all your employees understand all the benefits they receive from the organisation.
Create a recognition programme that recognises those employees who ‘go the extra mile’. Let them know how their efforts help the organisation.
Promote a healthy work-life balance. Encourage staff to take holidays and if they work late, allow them to arrive late or take an extra day off. Offer telecommuting or flexible schedules.
Offer continuous training and development. Find out what your employees’ short and long-term goals are to determine how you can help achieve them.
Offer personalised benefits to employees
There are many benefits to offering more personalised packages, including boosting morale, attracting talent, and retaining staff. Chris Bruce, the Managing Director and co-founder of Thomsons Online Benefits, says it’s important to consider the needs of your people at different life stages and understand how you can support them.
“According to our research, just over 40% of young people want to buy a home, and nearly 50% are saving for a holiday, yet less than 10% of employers offer support to meet these goals,” he says.
Conduct exit interviews
Exit interviews offer you the opportunity to understand the positive and negative aspects of employment in your organisation. The information you receive can be used to improve your workplace and retain crucial employees. Use the exit interview as an opportunity to get feedback on the compensation and benefits your organisation offers as well as on managers, the company culture and communication.
For more detailed information about how You Become can help your organisation to enhance your corporate culture, boost engagement and therefore productivity, please call a member of our team on 01932 977 090. You Become is a leading expert in employee engagement and organisational culture for ambitious UK companies. ‘What is the ideal employee turnover rate?’, Monster, www.monster.co.uk  ‘How to make benefits personal’, Bruce, Chris, Thomson Online Benefits, https://www.thomsons.com/, May 30, 2018