According to data from the US Bureau of Labor Statistics, three million people have voluntarily left their jobs every month since June 2017.
If you're an employer, that is worrisome news. As a startup, you're going to spend some money and a whole lot of time hiring new staff and onboarding them. You want employees who stick around.
To help you with employee retention, we look at five tips to help you reduce employee turnover.
#1: Analyze turnover rates
If you've been in business long enough, you can analyze your startup's turnover rates. If not, you can look at the rates for your industry.
This helps you understand what you're actually measuring. In this case, you want to measure voluntary turnover, not those you have to let go.
You also want to look at why employees are leaving your business before you can make changes. The simplest way to find this out is to ask. Your human resources team can help you with this.
#2: Offer flexibility
Today's workforce craves flexibility, and by giving it to them, you encourage happier employees who stick around.
One study finds that 76% of managers and 80% of employees say flexibility in their work arrangements has positive effects on retention.
As a startup, you are uniquely poised to offer this benefit to your staff. This may mean flexibility in working locations or in working hours. Stay on the cutting edge by offering this benefit to your team because it will reduce employee turnover.
#3: Hire the right people
Hiring is tricky, but if you do it right, you'll decrease turnover. This means hiring team members who have strong skills that are suited to your needs. But it also means hiring people who will fit in with your startup culture and your other team members.
Your workplace culture and employee morale are keys to retention. So, make sure you are very forthcoming about this. Ask the right questions. Show the potential hires around.
Bottom line – make sure they fit in your environment. This is just as important as the right qualifications.
#4: Offer praise
Your team needs to be recognized, and they want to feel appreciated by you. This doesn't mean you need to give out big rewards and have recognition luncheons.
It does mean thanking a staff member for a job well done. It means congratulating them for getting a task in before the deadline. It means praising them and showing appreciation for the little things as well as the big ones.
Employees who feel respected, appreciated, and acknowledged are more motivated and productive. They are also more likely to stick around.
#5: Offer good pay and benefits
If you don't pay your staff well or offer good benefits, they may see you as a stepping stone, and they'll find a business that will.
Invest in your business by investing in your employees. Make sure you are providing more than a living wage as well as benefits your staff wants. Do your research and find out what a competitive salary in your industry is. Then beat it.
Employee turnover is costly, especially for startups who may be operating on a small budget. Many businesses don't take employee retention seriously, when really it should be a priority.
The costs of high employee turnover add up. Recruitment, hiring, interviewing, training, productivity, and employee morale are all affected.
If you understand the enormous impact high turnover rates cause, you can take a stand to alleviate it.
Don't let average turnover trends affect your new business.
By upping your game, you can avoid employee loss with some effective employee retention strategies. Good benefits, the right team, and a great workplace go a long way.
As an added bonus, when your employees are happy enough to stick around, they will be more invested in your startup. Ultimately, they are more likely to provide exceptional customer service which in turn increases your growth.
Are you a new startup ready to succeed? Are you looking to get your new business off the ground and watch it rise to success? We are here for you. We can help answer your questions and guide you through the process. Outsource your HR duties, finances, payroll and more to us. Contact Escalon today to get started.
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