How to Keep Your Employee Retention Rate High

For business management, employee retention rate is an important metric to keep an eye on. This is the rate at which employees stay at your company. If your employee retention rate is low, that means employees aren’t staying with your company for long. Employee retention rate can have effects beyond the number of people you have employed. Keeping qualified employees for a long time reduces the cost of the hiring and training process. It also ensures that they will continue to do quality work that will help you reach your business goals. Help keep your employees satisfied and your business thriving with these tips on keeping a high employee retention rate.

Give Your Employees Positive Reinforcement

It’s normal to want to be recognized for your hard work. This can make one feel like they’re valued, and it will motivate them to keep up the good work in the future. Explicitly let your employees know when you see them doing a good job, and keep it consistent. This can be done more formally through a periodic recognition program that offers a prize or informally through a spontaneous public shout-out. Whatever way you choose, make sure the people running your organization are getting the recognition they deserve.

Give Your Employees the Space to Grow

Many employees leave because they don’t see a future for themselves at the company. As people change, what they want out of a position will grow and change as well. It’s natural for an employee to want to switch positions and responsibilities, depending on their interests and any new qualifications they’ve developed over time. Let your employees grow within your company by offering different training workshops that will help them develop skills that can be applied to different positions. If you find your company needs a new position, draw from your own pool first. This will give your employees recognition as well as saving you from training someone completely new.

Give Your Employees a Competitive Wage

Most importantly, a desired position needs to fulfill an employee’s financial requirements. Insufficient pay is one of the most common reasons that employees leave. You can treat your employees well, but you also need to make sure that they can support themselves. Take the time to research what pay rate your competitors are offering for similar positions and use that to give your employees a better deal. If an employee has been with you for more than a year, consider giving them a raise. This is another great way to recognize their hard work and cuts the cost of hiring a new employee.

Maintain Employee Retention with Help from Kimberly Prescott Speaks

As the owner of Prescott HR and a recognized business and management consulting expert, Kimberly Prescott is passionate about unintimidated HR. If you are interested in inspiring your team and transforming your HR department into a thriving, integral part of your workplace, then reach out to Kimberly Prescott for your next webinar or conference at (443) 351-8818.