Employee retention (making an employee want to stay with you) is essential for running a business. A high turnover rate involves more training and onboarding costs per employee, cutting into your bottom line. Some job positions need six months or more before the person filling the role is up to full capacity. If a significant number of people at your company have been there for a year or less, you'll need to have more people on staff to do the same amount of work. Retaining knowledgeable and qualified employees is the fastest way to boost your company's efficiency.
Still, if you and your company struggle with employee retention, you're not the only one. The consumer market is changing rapidly, constantly evolving to keep up with the newest trends and most up-to-date technology. This means that the job market, in turn, is continually growing and changing, and the kinds of jobs people are looking for change along with it.
We know how vital employee retention is to your business, and we're here to help. That’s why we’ve compiled a list of four best practices to improve your employee retention rate.
Hire the Right Employees for the Job and Your Business
Hiring the wrong people for the position you need to fill often leads to a struggle with employee retention. Try to dig a little deeper into the applicants you are considering for the role throughout the hiring process.
Look at their job history — specifically, how long they worked at each job. If they have a history of leaving after a month or two (or anything significantly less than the amount of time you’d like them to work for you), you’ve got to dig a little deeper. Were they fired from these jobs, or did they quit? While both can foreshadow a potential problem with this employee in the future, one of them is more likely to affect your employee retention: quitting.
If you notice an applicant has a habit of getting a job, working decently for a short time, and then quitting, it may be a sign of their inability to commit to a job. Still, while that may be the most common cause, it isn’t the only one. They may have had different, unrelated reasons for quitting that would provide additional context.
Continue looking closely at their job history until you get a general idea of the kind of employee they are. Use the information and data you gather and compare it to the kind of employee you think would be ideal for this job. It should be someone who won’t get overwhelmed with the workload, knows how to fill the position, is willing to learn, and can adapt to change when needed.
Be Upfront About the Benefits and Drawbacks of the Position
One of the most common reasons an employee will quit or burn out is because they weren’t prepared for the struggles associated with the position. Therefore, when conducting the interview and briefing your potential hire, be clear and concise about any aspects of the job that might deter someone new to the field.
For example, the foodservice industry has a tendency to be understaffed and very busy, which puts a lot of stress on employees and can result in a low retention rate. If this potential hire was unable to handle the stress of that job in the past, but your role isn’t nearly as fast-paced, then you may not want to rule them out just because they quit after a few months. That’s why context is essential to understanding an applicant’s job history.
Make sure the applicant understands everything they'll have to deal with when they take the job so that they don’t get overwhelmed too soon, and quit.
Invest in Your Employees
Your employees are more than just a statistic or a way of making money. They’re human beings with needs and expectations just as much as their employer. If they feel their needs aren’t being met or that your company doesn’t value them enough, they may seek a job offering better perks or showing more appreciation to its employees. Offering even a few small benefits can be enough to convince your employees that you’re worth working for and that you do appreciate everything they do for you.
Offer Unique, Competitive, or Otherwise Enticing Financial Benefits
One of the main reasons anyone applies for a job is because they want an income. That’s why one of the first things a job applicant looks at is the pay schedule, how convenient your payment methods are, and, of course, how much is the salary you offer.
One way to implement an enticing payment system is by using on-demand pay. You can do this quickly and efficiently with Payroll software like PayCaptain. PayCaptain puts your employees in charge of their income and assures them that they will have money for emergencies and unexpected expenses. By offering unique and enticing benefits, you will attract more qualified employees and give them more reasons to stay with your company, raising your retention rate and creating a more positive work environment.