It's disheartening when you finally find the right talent for your business's job opening, only for that employee to quit shortly after being hired. It takes time, resources and money to source employees. And when an employee quits, you're forced to start back at square one with the recruiting process.
According to a study conducted by Work Institute, it costs U.S. businesses an average of $15,000 to replace an employee earning $45,000 per year. The good news, however, is that researchers from this study say that three-quarters of all employee turnovers are preventable. To minimize the cost of turnover within your business, consider the following employee training and retention tips.
Treat Employees With Respect
You can't expect an employee to stick with your business if you don't treat him or her with respect. CNBC explains that lack of respect is a common reason employees quit. When employees don't feel respected by their employer or manager, they'll seek respect elsewhere by looking for a different job. Therefore, you should foster a positive environment in your workplace by treating employees with respect. Even if an employee makes a mistake, you should be courteous and respectful while explaining what he or she did wrong.
Promote Cultural Attachment
A business's culture directly affects the turnover rate of its employees. When employees feel a strong attachment to their business's culture, they'll feel more satisfied working for the business. So, how do you promote cultural attachment within your business? This is a two-step process that involves building a positive culture with strong values to which employees can relate, followed by promoting and raising awareness for your culture. The fast-food chain Chick-fil-A, for example, has built a strong culture around values such as family, honest and giving. Employees working for Chick-fil-A share these values, so they naturally feel connected to the business.
Consider allowing employees to work from home to increase satisfaction and retention rates. According to Global Workplace Analytics, more than one-third of employees would accept a telecommuting job over a pay raise. If an employee has a job that can be performed from any internet-connected computer, allowing him or her to telecommute can have a positive impact on their satisfaction. And when employees are satisfied, they'll are less likely to quit.
Show Employees How It's Done
Some business owners make the mistake of telling their employees how to perform tasks. Unfortunately, this often results in the employee making a mistake for which he or she is reprimanded. To increase employee performance and satisfaction, you should show them how to perform their respective tasks. If run a retail electronics store, for instance, you can show employees how to set up computers for display. A retail demo service may be used so that shoppers can't access sensitive data or applications on the computers.
Reward Employees for Performance
You can also increase your business's employee retention rates by rewarding workers based on performance. Not all employees put forth the same amount of effort in their duties. If you treat an employee who excels in his or her work the same as an employee who spends the majority of his or her time on the job browsing social media, it can discourage the hardworking employee from staying with your business. This doesn't mean that you should demote or demoralize under-performing employees. Rather, reward hard-working employees based on performance. If your business sells a product or service, perhaps you can reward the three top-selling employees of each month with a gift certificate. Doing so shows employees that their hard work doesn't go unnoticed.
Eliminating all employee turnovers is nearly impossible. Following these tips, however, will encourage employees to stay with your business.
Robert Cordray is a former business consultant and entrepreneur with over 20 years of experience and a wide variety of knowledge in multiple areas of the industry. He currently resides in the Southern California area and spends his time helping consumers and business owners alike try to be successful. When he’s not reading or writing, he’s most likely with his beautiful wife and three children.