The unemployment rate has recently shot up. After the pandemic outbreak, many companies had to make their employees redundant, but this scenario does not interpret that people did not step down willingly.
Studies have revealed that every year millions of Brits leave their jobs in search of a better one. High employee turnover rate is generally the issue in small businesses. As an employer, you may ignore this threat, but it will cost you double than you imagined.
You often do not consider the on-boarding cost of your employees, recruitment cost, and above all, the opportunity cost of time and money that you could utilize somewhere else if this were not the scenario.
If you want to improve the efficiency of your resources, you will have to increase the retention ratio. Here are some of the ways you can reduce the employee turnover rate of your company. You can look through some of the best employee appreciation to begin with.
Competitive salary
One of the top reasons for leaving jobs, according to a survey, is salary followed by career advancement, better opportunities, and location. However, some employees state that benefits like health care and insurance apart from salary also keep them in their jobs.
As an employer, you should offer a competitive salary and benefits to your staff. Of course, you must have enough revenues to meet this cost. Every small business generates enough revenues to offer competitive salaries to its employees.
You should manage your cost smartly to cut back on monetary benefits to your employees. If you are a start-up and offering below the industry standards, make sure that soon you will pay a good hike to your employees.
Onboard the right person
Recruitment is expensive because you are to dedicate a lot of time to shortlisting and hiring the right candidate. Whether you have an internal team of recruiters or you have outsourced it, it takes a lot of time to hire the right person.
Sometimes entrepreneurs do not hold patience and hire the wrong person. If you hire a person thinking that you can fire them within the probation period, you cost them more if they do not fit in your work environment.
A rule of thumb says that you should rigorously test applicants’ skills before hiring to make sure that the candidate perfectly fits your environment. If you hire the wrong candidate, it will cost you onboarding training and make recruitment extremely more expensive.
Employees also want stability. If you choose the right candidate that perfectly fits your work environment, you will be able to retain your employees without costing you more money in recruitment.
Solve employees’ grievances
No matter how good the environment you try to provide to your employees, they will likely come up with some issues. As an employer, you should figure out what your employees expect from you. If your employees feel that they are working like a robot and there is no fun in work, they will find it monotonous and eventually leave.
Work is essential, and work should be a priority. Of course, you will want your employees to be as productive as possible, but you should also find out your employees are not suffering from any issues that hamper their productivity.
Try to track their performance but with an intention to know when they are most productive and when they are sluggish. Find out the issue and then fix it. If your employees find that you listen to them and solve their grievances, you will find that they are more productive.
Be a leader, not a boss
Everybody wants to become a boss. Not everybody wants to become a leader. Boss sounds more dominating while the leader sounds more convincing. When it comes to getting a task done, you need persuasive skills that are usually found in leaders.
Try to build leadership qualities in you. Develop an attitude in you that you can make people listen to you. If you do not have leadership skills, have leaders in your company.
If you have a clear direction to achieve your goals, if you can handle challenges, you can easily convince people to follow you if you have a strong desire to do something.
If your company is also facing a high turnover rate, you can quickly bring it down. All you need to do is to understand the reason and think about a solution.
The most common reason is not offering a competitive salary and benefits. You should hire the right people and offer them reasonable remuneration.
If your employees stay longer in your company, you can save a lot of money in recruitment, and you will not have to fund most of your business expenses with fast business loans.
