You’ve gone to the effort and expense to hire top performers for your company– how do you make sure they will stay with you? According to The Wall Street Journal, a high employee turnover rate can lead to costs of up to two times an employee’s salary to find and train a replacement. High turnover rates can also lower a company’s knowledge base and decrease performance and morale among the employees who remain.
- Make sure your match is a strong one from the start.Hiring the right people is the single best way to reduce employee turnover. “Using an expert search firm can give you the ability to identify exactly the right candidates. Not only will these potential employees have the skills you require, they will also fit well with your company culture,” says Mark Soufleris, Senior Vice President of Toft Group. “The stronger the match, the more likely the employee will remain with your company.”
- Effectively communicate your mission. Understanding and feeling connected to the organization’s goals keeps employees mentally and emotionally tied to your company.
- Ensure psychological safety. Google conducted a study on team performance and the conclusion was that the highest-performing teams have one thing in common: psychological safety, the belief that you won’t be punished for making a mistake. According to The Harvard Business Review, studies show that psychological safety allows for risk-taking, speaking your mind and creativity. Creating a sense of psychological safety within your company can lead to higher levels of engagement, increased motivation to tackle difficult problems, stronger performance, and overall better job satisfaction.
- Check in with your current employees. In addition to conducting exit interviews to learn why employees leave, consider asking long-term employees why they stay. Ask them: why did you come to work here, why have you stayed, what do you think of management, what would you improve? Use the answers to strengthen employee-retention strategies.
- Recognize accomplishments. Feeling appreciated is crucial for most satisfied employees. You can do this in the moment with a thank-you email in which you copy the employee’s supervisor, or more formally with public recognition and appreciation in department or all-company meetings. The simple act of letting employees know you’ve noticed, understood and appreciated their work might be the most effective way to ensure they will be with you all the way to your goals.