6 simple techniques to reduce employee turnover and create an engaged workforce
Tips for keeping your employees happy
Most business owners agree that employee turnover is time consuming, disruptive and affects the bottom line.
The two most commonly asked questions regarding employee turnover, are “Why do employees leave? Do financial rewards work to keep good employees?”
Although rewarding employees financially is important it is not the only answer to keeping employees. Furthermore, it is important to understand that rewards do not always have to be monetary in nature but rather intrinsic rewards like treating people well, making them feel valued and an integral part of the business, carry equal weight.
So here are six proven techniques used by high performing organisations that if correctly put into action can not only save you money by reducing turnover but more importantly can transform your workforce to outperformance.
1. Review your hiring practices.
Nearly a quarter of employee turnover occurs in the first 45 days of employment.
Ensure that the people you hire not only have the skills needed but also fit into the company culture. Employees who connect well with their team and whose values and goals align with the company’s they are less likely to leave. “It’s the people that keep me here…..” is a statement often bandied around.
Ensure that you have clearly defined the role at interview and upon commencement so that there are no misunderstandings. Ensure you don’t oversell the role.
Engage new employees quickly. Have the employee’s workstation set up. It makes a big difference to walk in and have the computer, phone. desk and email set up and working. Introduce the new employee to relevant team members. It makes the new employee feel welcome and feel like they can jump into work straightaway, feeling productive and motivated. Make sure you focus on the “hygiene factors” such as confirming when the employee will be paid?
These tips seem quite obvious however you will be surprised how many new starters spend the first week sitting around feeling frustrated. At the end of the day, people just want to contribute and be valued.
2. Create a positive work environment in which people want to work.
A positive work environment will increase morale, reduce stress, increase job satisfaction and ultimately improve performance.
Create an environment where friendships are cultivated. Socialisation plays an important part in making people feel they belong.
Create an environment where employees feel supported by management and employees.
3. Foster employee development.
As employees gain knowledge, they become experts and as experts they often become more invested in the company.
Development doesn’t need to cost a lot of money. The 70:20:10 development model is effectively used by some leading organisations. The model is based on the following:
70 % – based on the job training for current and future roles, coaching, cross training for role sharing,
20 % – based on project work, shadowing a more senior member, acting roles,
10 % – based on formal programs, study reimbursement, workshops
Remember to promote within whenever possible.
4. Offer employees competitive salaries, benefits and perks.
Whenever possible, offer your employees industry competitive salaries and bonuses directly linked to performance. Otherwise, if this is not possible, offer other attractive benefits and perks.
Benefits might include, flex time, regular performance salary increases, remote working opportunities and working part time.
Provide other small perks such as a weekly fruit box, sandwiches on a Friday, a monthly desk massage, coffee on Mondays, a fancy coffee maker, a pet friendly environment. These may all seem small or insignificant but you will be surprised what a difference these things can make.
Use contests and incentives (movie tickets, wine,) to help keep employees motivated and feeling rewarded. If done well these programs can keep employees focused and excited about their jobs and build relationships while having fun.
The key is matching the benefits with what your key employees value. Put together an attractive package that employees will be hard pressed to find anyplace else.
5. Ensure your workplace is employee centred.
Managers should not treat employees as though they are lucky to have a job, rather they should be treated as though the company is fortunate to have them. Treat them like a valued customer. Work with them to understand why they come to work there, why have they stayed, what would make them leave, what are some of the non-negotiable issues?
Research has shown that there is a strong correlation between strong customer service and high employee engagement levels. Simply put, happy employees are very good for business.
6. Practice communication.
Communication is critical to strong employee engagement.
Ensure lines of commutation are always open on any topic and in doing so use communication to build strong employee/manager relationships. As the old adage goes “employees leave managers not companies”.
Here are some ideas to strengthen communication in your workplace:
- Share company information such as vision and goals. Feeling connected to the company’s goals is one way to create engagement.
- Provide recognition for a job well done. Praise that is sincere, timely and specific goes a long way to boosting morale.
- Equally, provide timely and specific constructive feedback.
- Ask for input before making decisions that affect the workplace.
- Hold regular meetings where employees can offer ideas, ask questions, information is shared.
- Have an open door policy that encourages employees to speak frankly with their manager.
- Communicate with your employees about their goals and aspirations and how you can help them get there. Understand what makes them tick.
- Communicate what is expected of them. It may seem obvious, but some employees don’t know exactly what their jobs entail and what you need from them.
In summary, employees want more than a pay check. In fact, most employees are motivated by developing their skills, a strong sense of community, relationships and job satisfaction resulting from being able to contribute and be recognised.
Interestingly most of these suggested ideas cost nothing or little to implement and according to research on turnover and engagement, the impact can be significant. So whilst employee turnover is costly, some powerful and effective solutions are not at all costly.
The overall objective is to create a workplace employees will not want to leave. Create a meaningful employee experience. Treat them like your number one customer.
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