The unemployment rate is gradually improving. As the job market improves, your talent is more likely to be thinking about changing employers. If you think that your employees should feel “lucky” to have jobs, you may just find your turnover rate higher in the coming months. Not only is this an expensive problem, as it could cost up to 400% of your individual employees’ yearly salary, but it reduces productivity and creates frustration in the workplace.
If any of the below are commonly accepted within your corporate culture, or are not expressly counteracted in your human resources policies, you may be without your top talent sooner than you think.
1. Pay them the bare minimum
Ensure that your organization’s compensation and benefits are on par with the industry standard. Don’t just assume they are, do your research. If the compensation is adequate, go a little above and beyond for your staff; it will pay off in the end. For lower income workers, they will change jobs for survival, while for most others; it is an issue of fairness and marketplace value. In addition, providing life-insurance, retirement savings, and comprehensive benefit packages to staff is essential.
2. Assume they have nothing else going on
A lack of a flexible schedule is often cited as the number one reason people leave their jobs. Work-life balance should be a key tool in your retention toolbox. Whether you offer telecommuting, a compressed work week, collaborative scheduling, or self-scheduling, show your employees that their lives outside of work matter.
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3. Don’t recognize for a job well done
A small act of recognition goes a long way when attempting to retain your best employees. Not only is it extremely simple to do, it can dramatically change the way employees feel at work. If people feel like “no one appreciates me”, they will be more likely to find someone who will.
4. Keep them up at night
Although the job market is slowly improving, people will never stop thinking about their financial stability. If it seems like your company might be facing cut backs or slow sales, they might start looking for employment somewhere more stable. In a volatile economy, people want to have a sense of safety in their jobs. To fight misinterpretations, provide clear communication on the company’s direction.
5. Pass them over for promotions
Career growth is important to people when they consider whether to stay in their current role. Use quarterly or yearly reviews to outline possible career trajectories. Also, whenever possible, promote from within. Although now and then bringing in fresh thinking is necessary, use your existing talent base to fill management positions. If you know that someone within your organization was passed over for valid reasons, make sure to provide feedback on the thinking behind the decision.
6. Provide insufficient training
No one likes to feel like they were given unreasonable tasks. Provide sufficient training and your employees will feel more satisfied. Provide outstanding training and your employees will feel empowered.