Employee Retention Is a Valuable Component of a Successful Business

Posted by in Recruiting, Hiring and Retention | Comments Off on Employee Retention Is a Valuable Component of a Successful Business

Employee retention, for many small business owners, is either a very intangible concept or is a process or goal that would seem to cost too much money to achieve. Employee retention may have associated costs, such as competitive wages and benefits, bonuses and other incentives, to keep your best employees and reduce the costs of replacing any employees, even those you are happy to dismiss. Those costs are minor when compared to the loss of sales, productivity and profits that are virtually guaranteed to occur if you don’t make a conscious effort to develop a dynamic and very tangible employee-retention policy or program. In fact, whatever costs are involved with a proactive employee-retention program should be considered an investment in your business’ future.

Employee retention can become more tangible for you when you start to develop two value concepts in your employees: trust and commitment. In most situations, people return like for like: Show that you trust and are committed to your employees before you expect them respond with equal trust and commitment. As a business owner, you initiate that reciprocal process by addressing, and then fulfilling, the issues or needs that are most important to your employees. You also want to foster a workplace environment that doesn’t drown individuality with too many rules and rigid procedures. In fact, individuality is a factor that motivates employees to take the initiative, become unexpected leaders and help you improve productivity and the processes that drive it.

Employee retention can also be strengthened by mutual trust when it’s reflected in your leadership. Employees should clearly understand the decisions you make, but not as edicts or commands. Instead, your decisions should be interpreted as being made for the common good, and with empathy for all those your decisions affect. You can also take these actions to create a trusting relationship between you and your employees.

  • Be visible. Don’t remain in your office all day or spend all your time with other executives and/or managers. Circulate throughout your business during every day, and don’t just observe.
  • Interact with your employees, so they know you’re approachable and are willing to listen to their comments and input. Join them for lunch occasionally.
  • Share the burden. Jump into the production process and help employees clear a bottleneck. If you see an employee struggling, then sit with him or her to overcome the challenge.

Your trust and commitment will return in the form of employees that are willing to work longer hours and adopt these and the other strong values of your company as their own. That strengthens your relationships with your employees and makes retention less of a problem.

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