Studies show that the average cost of replacing an employee is 38% of their annual earnings. This works out to $7900.00 for a worker that makes $10.00 per hour. This cost is cutting directly into the bottom line of the company. For an employee that earns $20.00 per hour it will cost you $15,800.00 to replace them. These figures make a strong case for doing everything you can to retain your employees. Here are some great strategies for keeping your greatest asset from leaving your company.

  1. Encourage Personal Development
  2. Promote Your Own
  3. Develop Channels for Communication
  4. Encourage Employee Feedback and Listen
  5. Show Your Appreciation
  6. Create the Right Benefits Package for your Employees

Encourage Personal Development

Personal growth is often overlooked. Employees are hired for a job and once trained that is where they stay. Employees are just like your business, they either are growing, stagnant or are planning their exit for bigger and better things. As your company grows you need to grow your people. Help them by building a career map and finding programs and training that will help them to reach each objective.

Promote Your Own

This is the natural next step for you if you are encouraging personal development. When you are planning for your company growth it is a great time to look at who in your organization would fit the new roles. The process of promoting your own shows employees that there are opportunities at the company for them.

Develop Channels for Communication

Communication is one of the most important aspects of running a successful business and managing employees. Developing trust within the company is a great way to foster communication within the group. It is always good to create ways that people can be anonymous and speak their minds without fear of retaliation. Focus on the message you communicate with workers and listen to what they have to say.

Encourage Employee Feedback and Listen

Being a good listener is a skill that every employer and supervisor should cultivate. Listening to what your employees have to say and understanding what they are saying to you could help you stop an employee from leaving. Listening and acknowledging something that is bothering an employee can often be enough if a real solution is not possible.

Showing Your Appreciation

Small tokens or acts of appreciation greatly affect moral and help to build the culture at your company. These do not always need to be grand gestures. They can be as simple as ordering in lunch for your employees or a small gift certificate. Other signs of appreciation could be an employee of the month program or even featuring employees on social media or in your company newsletter.

Employee Benefit Packages

Employee benefit packages should be tailored to meet the needs of each specific employee. This serves them in two ways. First, it is an exercise in learning about the employee and what the value and need the most in their life. The second, is the ability to show that you care for them by designing something specific for them. Every person wants to feel appreciated and needed and this is a great way to show you care about them.

It is important to remember that the culture you create will be a defining factor in whether employees want to stay with your company or not.