The Office for National Statistics recently released their “Labour market review, UK: February 2020″ which revealed that the UK employment rate is at a record high of 76.5% up 0.6% up on 2019 and 0.4% up on the previous quarter. However, alongside this, they also revealed that there were an estimated 81,000 vacancies in the UK – which means it is more likely that your employees might want to quit their job in order to move to something better – which is bad news for you!
The Society of Human Resource Management estimates that replacing a salaried employee can cost a business 6 to 9 months’ salary on average. So, if you lose a manager who is on £40,000 you are going to spend around £20,000 to £30,000 in recruiting and training expenses. Ouch!
So, how do you stop this from happening? You’ve worked hard to get the right people on board, the last thing you want is for them to leave as not only will you lose money, but you will lose access to their skills and experience as well. This is where employee retention strategies come into play. Follow our tips below to reduce employee turnover and keep your employees happy:
#1 Offer competitive benefits and salaries
More often than not, employees quit because they are offered more money somewhere else. Other reasons to quit include location change, better benefits and career advancement opportunities. So how important is money in the grand scheme of things?
Purchasing Power recently released a survey which focused on Generation X “Working with Them and Engaging Them”. Their results found that only 24% of those surveyed felt that financial stability was a motivating factor to stay in a job. A survey by AHIP also showed that 56% of those surveyed felt that health care benefits would help to keep them in their job.
These statistics would seem to show that offering more money and better benefits would encourage employees to stick around, and these should definitely be taken into consideration. However, these are not the only things that will retain employees – there are lots of other ways you can improve employee engagement including:
#2 Hire the right person from the start
Having an open and honest recruitment strategy including being clear about company culture and work environment means you should be able to find the right employee at the start. Nobody goes into the recruitment process thinking their next hire will quit within 12 months, but that is happening more and more these days. If you don’t have a robust recruitment strategy with a clear idea of the skill set you need to recruit, then don’t be surprised if your new employee quits.
The more informed candidates are during the recruitment process, the longer they will stick around as they know exactly what they are getting into.
#3 Improve employees work-life balance
The days of people working like robots are long over, employees these days don’t want to work long hours, they want better work-life balance through things such as flexible working. Listen to your employees, find out what their pain points are and come up with creative ways to alleviate that pain. More often than not it is not just about increasing their paid time but giving them more job satisfaction through the use of more creative options including family-friendly working schedules.
You also need to be aware that not all of your employees will communicate their pain points to you openly – they may not even realise what their pain points are themselves. All you can do is to keep an open line of communication and perhaps offer them a bonus day off if you notice they are getting a little fraught.
#4 Employ effective leaders
Successful businesses these days are led by effective leaders rather than bosses. Think of some of the great business people of our time – Richard Branson, Sheryl Sandberg or Tim Cook for example. They are not afraid to share their long-term strategies with their employees, letting them know where the business is headed and encouraging them to feel involved. They also have a genuine desire to offer the best experience possible to their customers and they are able to handle any challenges that come their way too.
Effective leaders within your business will inspire confidence in employees as well, as they have a belief in the importance of the people within the business. They actively create open channels of communication with all employees so that every employee feels able to express themselves. An open-door policy is critical for success.
#5 Offer many opportunities for learning
Many statistics show that employees that have opportunities to learn and develop are much more engaged in their workplace, than those who don’t have the same opportunities. However, in this case, learning opportunities are not just about on the job training to improve how they perform at their existing job, it is about offering employees the chance to broaden their skill set. This then allows them to grow and expand, and even move up the leadership ladder if they want to.
People want to know that they are succeeding and that they are making a difference to the business. Offering them the chance to complete a training course gives them something concrete to be proud of.
If you need help with finding the right employees – and retaining them – then please get in touch with Agile Recruit. You can call us at our Manchester Office on 0161 416 6633, or our Milton Keynes Office on 0203 800 1222. Alternatively, you can email us at email@example.com.