With the millennial mindset entering today’s market full throttle, skilled employees view new jobs as opportunities for growth, and won’t hesitate to take their talent elsewhere. In fact, a recent Talent Management study issued that a third of new hires leave their job by month six!
But don’t fret – there’s something you can do! Check out these retention strategies that can drastically reduce staff turnover, while channeling employee engagement, innovation, and creativity.
1. Create an Inclusive and Innovative Company Culture
Your company culture should be an experience in and of itself. Today, an exceptional culture is just as vital to employee satisfaction and retention as a high paying salary.
How do you build a strong company culture? Strive to create an environment in which “office drama” is minimized, and collaboration and communication are encouraged.
Respect and encourage creativity and innovation. Make sure everyone gets recognition for good ideas and hard work. Encourage people to think outside the box. Even if a particular solution isn’t currently feasible, remain encouraging and upbeat.
2. Revamp Your Hiring Process
Employees and companies have to be the right cultural fit for each other. Start by choosing the right talent! By onboarding an employee that will “mesh” with fellow teammates, you’ll leverage the productivity and group harmony of your business. Your new hires will most likely be happy in their role in a supportive environment, and the risk of staff turnover will gradually decrease.
3. Make Sure Your Benefits Package Is Up To Date
According to the US Incentive Federation, US businesses spend $90 billion a year on non-cash incentives, up 17% from 2013.
Be it traditional healthcare and retirement packages, or non-traditional gym memberships and tuition reimbursement, benefits are a vital consideration to prospective employees and the baseline for retention.
Consider small benefits, such as food discounts, pet insurance, or an errand running service. Offering perks is often quite affordable, and can generate a lot of appreciation among staff. Don’t know where to get started? Get in touch. We make rocking benefits easy.
4. Reward Hard Work and Exceptional Performance
Rewards and incentives can drive productivity. By acknowledging and supporting the employees who go above and beyond, you also encourage their coworkers to contribute. There are many ways to reward employees!
Provide your employees with regular feedback and recognition for their hard work. Of course, monetary incentives are a plus, but raises or promotions aren’t always an option. Don’t let that stop you from acknowledging your employees’ accomplishments! Everyone appreciates a personalized verbal or written kudos from their boss. This also strengthens the bond between you and your employee.
5. Discourage Micromanagement
Micromanagement, especially pertaining to incoming millennial talent, can be toxic to a work environment and employee retention. Often, the micromanager’s mentality – and drive for productivity – is well-intended, but unfortunately can result in annoyed, disengaged employees who feel like their bosses don’t trust them. Many employees may be tempted to look for greener pastures where they will be able to take on more responsibility.
Whether or not a staff leader can perform better than a subordinate, a “just let me do it” or “do it this way” mentality can hinder employee growth, innovation and morale. When training your management staff, focus on leadership and mentoring skills, and hire managers who want the best for their team, not to be the best player.
6. The Right Type of Management Is Still Needed
Eliminating micromanagement doesn’t mean eliminating management entirely. Managers must provide feedback, guidance, and organize their team, but with an approach that empowers employees rather than stifles them.
Quarterly one-on-ones are an excellent way to communicate and collaborate while still giving employees room to perform individually.
The role of a manager is not to be the smartest, or most capable person in the room; their job is to build high performing teams. Doing so will increase engagement, encourage innovation, and help establish a work dynamic employees want to stay in.
7. Do Exit Interviews
Turnover is inevitable; even in the highest-paying, most sought after companies, employees are going to leave. Consider it a learning experience: understanding why your employees are leaving can prevent others from walking out the door.
If an employee gives notices, plan an exit interview before they leave. Having a neutral party, such as an HR employee, conduct the interview, is often the most reciprocated dynamic.
Turnover is Inevitable, But You Can Improve Retention Rates
Understanding what keeps employees engaged, motivated, and satisfied is vital to attracting prospective hires, and retaining top-talent. While employees will inevitably change careers, needs, or locations, you can improve your retention rates through conscious effort. Many organizations are currently refocusing their retention strategies, and have implemented small-scale benefits such as Errand Solutions to create the “work-life balance” many young employees value. Building a value-based, team-driven, company culture, and rewarding your employees with benefits, bonuses and simple appraisals, is an excellent place to start.