Retaining important employees is essential for long term success of your business. Obviously, best employee retention ensures effective planning, increased sales, customer satisfaction, brand recognition, and great teamwork.
Employee retaining matters
Failing to hold the employees can cost dearly to the bottom-line. It creates internal issues like excess job responsibilities, which the co-workers will need to fill-in for. It will only lead to insecurity and dissatisfaction among them.
On the other hand, recruiting of new employees might not seem like a feasible option, as it involves time investment (man-hours) on recruiting, appointing, and training new employees. According to Glassdoor calculator, the cost-per-hire in losing a manager can cost 100% of their salary, which is related to loss of revenues on hiring and training a new replacement.
Filling in of senior positions can cost a third of the position’s annual income. If the position salary is more than $140,000, then it can be a huge cost for your business to absorb. The best solution is to create a work culture that will help you to retain key employees.
However, there is no foolproof plan for 100% employee retention, because some of them will still move out, especially for the reasons that are totally beyond the scope-of-control for any business. Now with that being the case, all companies much still look to identify the areas for reducing new-hire costs.
In this post, we shall look at employee retention as the best way to minimize the costs that will otherwise have to be spent on recruiting new people for the jobs.
5 tips to reduce new hire costs
- Clarity and transparency –
Common complains by the employees regarding the following areas will have to be addressed.
- No clarity about their job-roles and expectations
- No feedback on their performance
- No clarity about their earning potentials down the line
- Failure to offer robust framework
- Failure to hold one-to-one meetings
You must work towards offering quality management, so that the employees don’t have to go through undue stress, and eventually leave your company. If the employees do not feel their importance in the work environment, they will eventually feel the burn-out. You will need to create the system for addressing the employee concerns, and for empowering them.
- Offer necessary work system
When an employee is disengaged, you will need to look into what work system that is making the specific employee fail. Time, tools, and training can help in filling up the needs of those employees, so that they can perform to their best potentials. They will need to have the necessary resources to do their job perfectly, or else they may move to another employer, who offers them the tools necessary for their growth.
- Fairness & equal treatment
All employees differ in their work styles, ethics, talents, responsibilities, and goals. Joe and Nancy have same role but their style to do job is different. Nancy works very hard and even goes beyond, whereas Joe just works to fulfill the quota. Now, should both these employees be treated in the same way? If there is lack of recognition here then Nancy may stop working hard or leave. It is crucial to retain such talent. Monitoring software will help you identify, which employee is committed more and must be appreciated.
- Meetings with employees’ matter
Large organizations have thousands of employees and dozens of departments. Monitor PC usage of every employee to identify the productivity area zones that need to be improved. You can block the inappropriate web content, especially for working hours with internet monitoring software.
Equipment usage policies are taken care of, which is understandable to the employees but senior management ignores their employee’s existence. Common complaints get voiced, when an employee leaves the organization. Therefore, senior management needs to spend some time with their employees in person to get familiar with their skills, abilities, and talents. It makes employees feel acknowledge, which results in total long-term loyalty thus reducing new hire cost.
- Offer growth opportunities
Employees can consider internet monitoring software as a self-control tool. It can enhance their efficiency and productivity as they are aware of being monitored. Employees always want to increase their knowledge and grow. Given them opportunities to attend seminars and training classes or they may stagnate. To identify potential, a career-oriented and valued employee will need to experience growth within your company otherwise he/she may leave.
Employee retaining is key to reduce new hire cost!