Having reliable employees is critical for driving sustainability. It is especially crucial in today’s job market, as the competition for retaining top talent is high. Employees often look elsewhere because other companies have something more beneficial to offer than money.
However, the more employees a business keeps at their company, the less likely they are to struggle. It can make all the difference in how a small business thrives. Business leaders who aim to drive long-term growth must learn about the importance of developing and retaining reliable employees. That way, they can devise new strategies to help them achieve this objective.
Saves on Turnover Costs
According to SHRM, around $5,000 is the average cost to hire a new employee. This is due to the time job advertising and recruitment needs to find a new hire. However, the costs associated with onboarding are even higher.
Additionally, the impact on team productivity can further increase expenses. When an employee decides to leave, it can cause a dip in the team’s efficiency. The remaining team members may need to adjust by taking on additional responsibilities. Maintaining a lower turnover rate can sidestep those costs. In turn, retaining reliable employees keeps the workforce stable, ensuring long-term financial health.
More Knowledgeable Employees
Keeping reliable employees means you have a team familiar with their jobs and the company. The longer an employee stays at a company, the more they know the ins and outs of the business. This can be from how things work to knowing what the customers expect. Having this knowledge is valuable for companies. It helps the whole team work better together and make smarter decisions. This means operations keep running smoothly, allowing companies to move forward.
Boosts Workplace Morale
Staff members who stay create a more stable work environment. As such, team members feel more comfortable and connected, creating a sense of community. When employees know each other on a personal level, collaboration increases. This positive atmosphere encourages more teamwork and inspires loyalty. Happy, engaged employees are likelier to go the extra mile, contributing to a business’s success.
Secures Businesses During Labor Shortages
Labor shortages are expected to increase, especially with a projected 40% population increase of people over 60 by 2050. While 2050 seems far away, retaining employees long-term will become even more crucial. Retained workers keep their roles filled and provide a buffer against the challenges of hiring in a competitive market. This ensures business continuity and avoids the pitfalls of talent scarcity. As a result, companies can maintain their performance and growth despite the outside pressures of the labor market.
What Are the Causes of Turnover of Reliable Employees?
Increased turnover occurs from various causes. However, the top three reasons team members leave are due to the following:
- Low pay and benefits: Employees stay because of compensation and benefits, but 63% of workers have left because of low income. When wages and benefits align with employees’ needs, they feel valued and avoid looking for better opportunities. While salary is a huge benefactor, benefits like health care and retirement plans are also key.
- Lack of room for advancement: Career growth opportunities are essential for employee satisfaction. Without promotion, workers can feel like they are stuck. However, if they see a future for themselves in their organization, they feel more inclined to stay where they can develop professionally.
- Lack of respect in the workplace: A respectful work environment is key to keeping employees. Whether through poor management practices or a toxic company culture, this feeling of disrespect can drive employees away. Appreciation is vital for creating a positive work environment and ensuring they feel motivated to stay.
Key Strategies for Retaining and Developing Reliable Employees
Despite the reasons for employees leaving their workplaces, companies can certainly maintain their numbers by using the following strategies.
1. Provide In-Depth Onboarding and Orientation
Onboarding and orientation are key — it sets up new employees for success. One survey found that 26% of employers only use up to a week to process new workers. While teaching the job specifics is crucial, this is an opportunity to immerse new hires in the company culture and values. Effective onboarding sets the tone for an employee’s whole tenure. It helps make them feel like they belong and understand how they contribute to an organization’s success.
To use onboarding as a tool for retention and development, companies should make time to create a fun and engaging process. This can include meet and greets with other team members, mentorship programs, and providing a support system. This strategy helps employees quickly acclimate to the new environment and makes them feel less intimidated.
2. Offer Employees Better Compensation and Perks
Providing the right pay and extra perks can be a great way to retain and develop employees. While competitive salaries are crucial, companies are recognizing the value of offering benefits. For instance, a flexible working arrangement greatly enhances job satisfaction. This can include remote work options or flexible hours.
Another strategy could be to offer great health benefits. From medical and dental to mental health support, employees highly value these aspects. Additionally, personalized perks can make a difference. These could include offering on-site childcare, gym memberships or transportation allowances.
3. Establish a Performance Management Program
During economic downturns, small businesses have less room to make errors regarding performance. An excellent solution would be to develop a performance management program. This involves having team members set goals based on the company’s priorities.
Establishing a program like this empowers employees to go the extra mile. While this helps with employee growth, it also supports a company in achieving its goals faster. Performance management programs give employees a sense of purpose, leading to increased engagement.
When implementing these programs, it helps to celebrate employees’ achievements. Business leaders must ensure they provide in-depth feedback through regular one-on-one meetings. This creates more transparency between managers and employees, building a foundation for open communication.
4. Foster Employee Recognition
Employees need recognition to feel valued. When team leaders and co-workers demonstrate appreciation, staff members feel validated for their efforts. Giving credit can take many forms, from awards and bonuses to casual mentions in team meetings.
To foster more recognition in the workplace, companies can create a structured recognition program. This can include peer-to-peer recognition, where employees are encouraged to acknowledge their colleagues’ contributions. Such programs often use platforms where employees give and receive credit, making it a part of the daily work culture.
5. Invest in Career Development
Employees want to know that their employer is invested in their career growth. By investing in employees and their skills, companies can foster a more loyal workforce.
A practical way to invest in this is through continuous learning opportunities. This can include offering access to training programs or online courses. Providing these resources helps employees expand their skill sets and stay updated with industry trends. In turn, it makes them more competent in their roles, helping to create a more adaptable workforce.
Drive Long-Term Success Through Reliable Employees
Retaining and developing reliable employees is vital for long-term success. While developing and implementing strategies for keeping employees takes time and effort, it becomes worthwhile. Investing in a team prioritizes their dedication and satisfaction, building a strong foundation for growth and stability. Bear in mind that employees are a company’s biggest asset. Therefore, trying to retain and develop them will be key to a thriving future.
About The Author
Eleanor Hecks is the Editor-in-Chief of Designerly Magazine, an online publication dedicated to providing in-depth content from the design and marketing industries. When she's not designing or writing code, you can find her re-reading the Harry Potter series, burning calories at a local Zumba class, or hanging out with her dogs, Bear and Lucy.