It’s one thing to hire great employees, but it’s another to keep them with your company for years. If your employees don’t feel engaged, appreciated, and rewarded, they may begin looking for other jobs with other companies. If you have a low retention rate, it’s definitely an indication that you’re doing something wrong somewhere. When employees leave, you have to spend time and resources on a job search, interviews, and then training. Rather than wasting energy on all that, take the time to implement a few different ways of improving your employee retention rate.
Fairly Compensate Your Employees
Determining your employee salaries and raises is often one area where employers try to trim the budget. While cutting raises by a single percentage point may, on paper, seem to save the company money, that one percentage point could be the thing that drives employees away. Think about employee raises in terms of what it would spend to replace that employee. Once you figure in all of the work lost while searching for a new employee, the resources and time spent by your HR department, and the time it takes to train someone new, you’ll see that paying your employees fairly actually saves you money.
How do you decide what’s fair? You can look at what your competitors are paying their employees or do research to determine the average salary for specific jobs. However, these numbers are sometimes seen as meaningless because they don’t take into account the experience of each employee or the job duties of that employee at your business. That’s why many companies hire Aon Hewitt Singapore to assist with a compensation review. This review will help you see how your salaries line up with others and what you need to change.
Likewise, don’t forget to look at the benefits you’re providing to your employees and have those reviewed as well. Paid holidays, sick days, health benefits, and retirement packages are all very nice, and some employees may even be able to overlook a slightly lower salary if you’re providing them with a great benefits package. If your benefits aren’t as good as those offered by others in your industry, however, you may note that some employees leave due to this. If that’s the case, you can have an outside party evaluate your benefits package and ask for feedback from your employees.
No one likes to put in hours of hard work without a thank you or some form of recognition. Make sure you take the time to recognise everything your employees do for you and your business. This includes complimenting them on a regular basis for tasks done well and providing some sort of public recognition at special events. For example, some businesses hand out awards at an annual company event or make note of outstanding work at weekly or monthly meetings.
Also remember that everyone needs praise, even those you see struggling. In fact, they may need this praise the most. Even those who are in need of some extra help do something that is noteworthy, so be certain to recognise it.