Employee retention is a big problem for most companies in the United States. Nearly 57% report this is a big issue that impacts their bottom line. Bad hiring decisions cost companies a lot each year. According to the Department of Labor, the decision to hire the wrong person can cost a business about 30% of that individual’s salary for that first year. Others estimate that employee turnover costs businesses anywhere between 30 and 150% of that employee’s salary for that same time frame. It is no wonder that many firms and businesses opt to use an outplacement company or executive search consultants to handle their hiring.
One way to save money on human resources is to make sure your current employees are happy. Lower staff turnover equals a more robust bottom line. Here are some expert tips to keep staff happy.
- Make your employees feel valued. Any executive placement agency will tell you that happy employees provide better customer service than unhappy ones. When you make sure your employees, who are often the face and voice of your organization, are happy and feel appreciated, everyone wins. They do a better job because they feel like they are part of something that cares about them. Customers get the service they want and deserve and recommend your business to their friends. Your bottom line improves because people rarely leave companies where they are treated well.
- Make new employees feel like they are part of your “family.” Human resource staffing experts say that when anyone is new to an organization, whether it is a new job or a new club, they need to be brought in, shown the ropes and made to feel like less of an outsider. When you bring on new employees, it is critical that they are made to feel like they are welcome, wanted and part of your company culture. This is not a time to give them a handbook and just say, “welcome aboard.” Make it your standard operating procedure to get them acclimated and adjusted to working with you as soon as you can. As many as 22% of new employees will leave their jobs after or before they reach the 45 day mark so you do not have a lot of time to make them feel like they are part of your corporate culture.
- Take care of your people all of the time. Southwest Airlines is known for being a great place to work. They understand that people who have fun at work do a better job. One trick they have learned that makes the workplace merrier is to throw parties for the general staff and management. This gives them a chance to get to know the people above them. Frequently, they hold family events to get to know the people who are important to their staffs. When employees have emergencies at home such as illnesses and accidents, management lets them know how important they are to the company by getting them rides, hiring cleaning services for their homes and sending them meals during family crises.
- Give employees what they need to do their job. The people who are the happiest at their workplaces are those who are empowered to do their job. outplacement company experts say that when staff are given the tools they need to do their jobs, clear expectations are set by management and both positive and negative (when constructive) feedback is given, employees are happiest. If you give your employees all of these things, they will stay at your company longer and many even turn down higher paying salaries.
Employee turnover is just bad business. Even if you hire human resources consulting firms or an outplacement company to do your hiring, training new employees is hard work and costs money. There is always some downtime between when one person leaves and another starts. Keeping your employees happy does not have to mean spending a lot of money, in fact, there are many things you can do to improve morale are free. Keeping good people on the payroll will prevent you from needing to use an outplacement company to hire new staff often and will help your bottom line.