The Benefits of Employee Retention
One of the best reasons that a company wants to retain its work force is to save money. Heavy employee turnover is expensive. It takes time to hire new employees, get them trained and integrated into the company. Productivity also takes a backseat when a manager or department head has to focus on replacing employees.
How to Retain Employees
To retain employees, a company needs to treat them well by offering a comprehensive benefits package. This includes health insurance, life insurance and dental and vision care. A pension fund, 401(k) or other types of retirement plan are also necessary.
There should also be financial incentives that include regular raises, bonuses and stock options if the company is publicly traded. Another way to keep employees happy is by offering a chance for career advancement. You can provide training to acquire new skills, tuition reimbursement for continuing educations, and promotions for exceptional work. Promoting from within also helps employees to feel they will be rewarded for their hard work.
An open-door policy encourages communication at all levels. Employees want to feel heard. They should be encouraged to share their ideas and suggestions on how to improve certain aspects of the company. Employees should feel they can ask questions and talk to their managers. The managers and department heads have to make the effort to listen to their staff members, but also let every employee know what is expected of them. The company can also have an employee blog or newsletter that keeps employees apprised of the company’s goals and accomplishments.
It’s important for companies to acknowledge that their employees have lives outside of the office. Other policies to implement to keep the best employees include telecommuting or other flextime options. This helps employees to work remotely part of the time or to work the hours that suit their lives better. Some companies offer an in-house day care, fitness center or discounts to local gums. Still other small perks to add are free coffee or tea throughout the day and casual-dress Fridays. Even having dry cleaning pick-up and delivery is a perk employees will appreciate.
Companies realize that employee retention is part of running a business. By starting programs and establishing policies geared towards improving work life and keeping employees productive and satisfied, they don’t have to worry about losing a valuable asset.
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