Organizations with high employee retention rates have best practices that you can apply in your own organization.
Here are the five key recommendations you can implement to increase employee retention rate.
#1 Offer A Competitive Salary and Benefits
Never assume because your pay and benefits were fair three years ago that your pay is fair now. This is especially true expending industries such as software development that are experiencing growth.
You should benchmark your job against the market every year and make sure that you pay your employees market rate. As a portion of a complete compensation package, employees also will appreciate access to bonuses, profit sharing, activities and events.
#2 Train Your Manager
Did you heard it before? People don’t leave jobs, they leave managers. This is true!
Make sure your managers are well trained in not only management techniques such as effective communication and soft skills but also in employment law. I think you confirm don’t want to lose employees because they are reporting to bad managers.
#3 Provide Growth Opportunities
Most people aren’t happy doing the same job for their entire lives. They want to grow in their careers and earn more money and have more responsibility.
If you promote people from within your company and provide opportunities such as transfers and lateral moves, people can feel confident staying with your company.
#4 Take Employee Suggestions Seriously
Ask your employees for feedback and listen to what they say. If they tell you about a problem, ignore it at your own risk. Employees will expect you to fix whatever is broken. Or, they expect a rational explanation for why the problem is not fixable and a chance to make improvements.
#5 The Bottom Line
Employee retention is important for every business to understand. Understand what your employee retention rate is and how your rate compares to others in your industry and your region.
If your employee retention rate is below average, work to fix it. Your employees and your bottom line will both benefit.