A challenge all small businesses will face in 2019 is fighting high employee turnover. The average person in the workforce can have up to 20 jobs throughout their career, according to a study by the Educational Advisory Board. The Balance reports that 87 of workers had an average length of employment of fewer than five years, which is a significant drop from earlier years.
High employee turnover is bad news for the modern office. Time and money are needed for proper training. Additionally, your team loses those skills when someone quits.
As a leader and boss, it's your job to make your company as appealing as possible to job seekers. You also need to work to make sure your current team stays happy and committed to your business. After all, employees who are engaged and like their company are 25 times less likely to move to a different job.
So, how do you do it? Here's our guide on attracting and keeping a quality team.
Keep Employees Engaged
Keeping your team engaged is a critical part of reducing employee turnover. Unfortunately, much of the US workforce is disengaged. This can lead to unmotivated employees. It also increases the likelihood they will look for other jobs. Furthermore, in 2016, Harvard Business Review research found “47% of actively disengaged [workers] strongly agree that they will switch jobs if the job market improves in the next 12 months."
Your employees want their work to mean something! Give them crucial tasks that will tangibly benefit your company. Leave busy work like answering the phone and administrative tasks to outsourced professionals.
Engaging employees at work is beneficial for staff morale. It also helps retain high-quality employees and improves productivity. A Gallup report confirmed that profitability increased by 21% and sales productivity by 20% in businesses with highly engaged teams. Equally important, the number of days employees were absent or missed work is also reduced in highly engaged teams.
Invest in Staff Training and Career Development
It's important to understand what motivates quality workers. For example, career progression is a top priority for 52% of the current workforce. Not to mention, employers that offer excellent training and development programs are very attractive to job seekers.
Make it clear that employees can advance and develop knowledge and skills within your company. Your team will be more inclined to stay and take advantage of career development opportunities. Altogether, investing in on-going training and development opportunities is not only beneficial for the staff, but also for the business. Retaining high-quality staff and enabling them to progress within the company strengthens your team and helps create a positive culture that boosts morale and productivity.
"The most successful companies know the opportunities to train and educate their team reaches far beyond the new hire stage," says SmallBizClub. "If you want your business to rank among the most successful in your industry, training, and education need to be an ongoing focus within your organization."
Provide Quality Leadership
Having an excellent leader is the key difference between losing and maintaining a high-quality team. As a result, a bad relationship with a boss is the top reason employees quit their jobs, according to the Balance.
Avoid this by providing your company with high-quality leadership. Practice active listening, set one-on-one time with your team, and work to reduce conflict.
Communication is key for establishing healthy relationships between managers and staff. Training and professional development opportunities for managerial staff can be very beneficial to help them become more effective leaders.
Make sure your team feels heard by you. Allow them to contribute to conversations and decisions on a daily basis, as is appropriate for your field.
Workers are striving for a better work-life balance. Remote work, freelancing and increased flexibility in the workplace provide a solution. It is no longer necessary for everyone to work together in person. 69% of younger workers believe attending the office every day is unnecessary. 45% would choose flexibility over pay when deciding between jobs.
One of the perks of the internet is that you can now potentially work from anywhere. Businesses who allow their employees more control regarding where and when they work often reap the benefits of a happier workforce.
There are different ways you can be flexible. Be open to new ideas and offer flexibility! It's important for attracting and retaining quality staff.
For example, it could be as simple as enabling employees to work from home for part of the week. Similarly, having different hours to accommodate those with a long commute is another option. Allow time off for family occasions is attractive to workers with children. Listen to your team and work to create a policy that is effective for everyone. It'll go a long way to encourage loyalty and strong, positive company culture.
Offer Employee Benefits and Perks
However, while quality benefits packages are attractive for potential new employees, there should also be incentives for staff to stay with the company. Consider important benefits like comprehensive health insurance, a retirement plan, 401k plan, paid holidays and parental leave.
Other employee perks such as food at the office, social activities, and fitness classes are not as highly ranked when it comes to staff retention. However, they can impact employee satisfaction and team morale, which affects overall engagement and promotes a positive work culture. High staff engagement and positive culture reduce the likelihood your team will leave.
Reduce Turnover, Add Value
To conclude, retaining a quality team is a priority for all businesses, especially in 2019. Competition for talent is at a high and workers are more open to changing jobs. Understanding what motivates your employees and investing in training and career development programs goes a long way to improve staff retention rates.
Employees are looking for growth opportunities, quality leadership, and workplaces where they can use their skills in a positive environment. In addition to creating a strong company culture, promoting employee engagement and satisfaction will help your business boost productivity and reduce staff turnover.
Show your team that your company is worth an investment of their careers and time!