Retention rates have made headlines in the HR world recently, and for good reason. High employee turnover imposes excessive time and financial costs on your company. It prevents your employees from functioning smoothly as a team. And it reduces motivation, as team members start to feel as if the office has a “revolving door” when it comes to their co-workers.
Why are your retention rates so low? Look at these four common reasons:
- Your compensation isn’t competitive – or doesn’t meet your employees’ needs. Higher pay doesn’t always pull away good talent, but a more competitive compensation package will – especially if that package offers things that really fit the employee’s career goals and work-life balance, like flex time, telecommuting, or assistance with tuition or wellness goals. Talk to your recruiter to build a compensation package that is competitive, and talk to your people to find out what benefits matter most to them.
- Engagement is low. Engaged employees actively participate in the quest for new challenges, clever solutions, teamwork, and training and development. When these opportunities aren’t available at your workplace, employees will either leave or disengage. Both of these can do serious damage to your bottom line – and to the motivation of your existing staff.
- Employees don’t feel challenged. To stay with their employer, employees need to feel as if they are being challenged without being overwhelmed. They need to see their careers moving forward and their efforts paying off in real ways for the organization. To improve your “challenge quotient,” make sure the right people are in the right roles, that everyone has enough engaging work to do, and that staff get the feedback and recognition they need.
- Management needs a skills check. Bad boss relationships cause more quality employees to leave than any other factor. Make sure managers get regular training, practice, and feedback on leadership and communication skills. When conflicts arise between bosses and workers, take them seriously – and look at ways to reduce strife.
Turnover is something every company faces; but by being strategic and taking strides to decrease turnover rates, you will be positioned for the best staffing success.
At TERRA Staffing Group, we understand the importance of cultivating retention rates while also being deliberate in your staffing decisions.