7 Strategic Ways to Increase Employee Retention While Reducing Costs
A small upfront investment in key perks, as well as simply taking a sincere interest, pays large dividends in the long term
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Business owners are always looking for ways to reduce costs and boost their bottom line Although it may feel counterintuitive, especially to a small business owner, spending a little more time and money to retain your best employees is one way of saving a lot of both. It has been understood for a long time that , which reduces ongoing hiring costs, of course, but happy employees also boost customer loyalty and the bottom line.
If your business experiences any turnover, you already know about the crazy high time investment and increasing difficulty — of hiring the new right person. Experts estimate that and turnover-related costs were equivalent to more than .
Another factor that increases the cost is finding someone with in-demand skills. A typical small business, , goes through an average of 86 applicants before it finds the right person for the job. One owner told us that on average for the city it costs more than $3,500 to recruit and train a single new staff member. That doesn’t include the risk of a regular losing her favorite barista.
So, how can you make sure y Ensuring that you not only help you retain your employees but reduce other costs at the same time. Funnily enough, the correlation of this is not a coincidence. We spoke to many SMB owners and managers from across the country in the community and here is what we learned from those that are doing this successfully.
Build a team atmosphere: Outings and parties can boost morale and than others. They can also help encourage your employees to better connect with one another — and feel closer to your business in the process. Sending out weekly, or monthly, staff memos pointing out employee milestones and successes helps your people know their hard work is being recognized.
Find your mission. Research shows that ethical businesses, those that have strong impact missions (think: only serving locally grown produce), . They can make more money and are preferred by customers. They attract more loyal employees, too.
Keep your staff healthy. Gordon Kushnick, owner of healthcare brokerage Essential Benefits in Seattle, said “If you don’t already, you should cover health care now.” He suggested that buying a can even reduce an owner’s individual health care, especially if your workforce is young. In addition, many cities offer a wage credit for business owners who offer employee benefits, reducing the costs involved.
Related: Employee Retention : Why it Remains a Daunting Task at Startups
Profit-Sharing
Offering managers and long-time employees a share of the profits helps keep your best people in your business. Cash sends a strong message that you care and gives staffs reasons to be more driven to help the company succeed. It can also have very .
Automate
Different businesses have different processes that they could automate to . Automating something as simple as time-tracking spreadsheets on average can save .
Related: Expert Tips For Efficient Employee Retention Strategy
Education perks
Nobody’s perfect on their first day. The best managers know that they hire for potential and then focus that energy through training. Small business owners can actually rather than trying to find new team members.
Related: Data Reveal the 7 Factors for Optimal Employee Retention
Be human
Sitting down with your employees on a weekly basis gives them the chance to clear the air and keep people focused on their goals — not their gripes.
Remember that all of these tips may appear on the surface to cost money and time but keeping your employees happy will help sustain and grow your business in the long-run.
Business owners are always looking for ways to reduce costs and boost their bottom line Although it may feel counterintuitive, especially to a small business owner, spending a little more time and money to retain your best employees is one way of saving a lot of both. It has been understood for a long time that , which reduces ongoing hiring costs, of course, but happy employees also boost customer loyalty and the bottom line.
If your business experiences any turnover, you already know about the crazy high time investment and increasing difficulty — of hiring the new right person. Experts estimate that and turnover-related costs were equivalent to more than .
Another factor that increases the cost is finding someone with in-demand skills. A typical small business, , goes through an average of 86 applicants before it finds the right person for the job. One owner told us that on average for the city it costs more than $3,500 to recruit and train a single new staff member. That doesn’t include the risk of a regular losing her favorite barista.
So, how can you make sure y Ensuring that you not only help you retain your employees but reduce other costs at the same time. Funnily enough, the correlation of this is not a coincidence. We spoke to many SMB owners and managers from across the country in the community and here is what we learned from those that are doing this successfully.
Build a team atmosphere: Outings and parties can boost morale and than others. They can also help encourage your employees to better connect with one another — and feel closer to your business in the process. Sending out weekly, or monthly, staff memos pointing out employee milestones and successes helps your people know their hard work is being recognized.
Find your mission. Research shows that ethical businesses, those that have strong impact missions (think: only serving locally grown produce), . They can make more money and are preferred by customers. They attract more loyal employees, too.
Keep your staff healthy. Gordon Kushnick, owner of healthcare brokerage Essential Benefits in Seattle, said “If you don’t already, you should cover health care now.” He suggested that buying a can even reduce an owner’s individual health care, especially if your workforce is young. In addition, many cities offer a wage credit for business owners who offer employee benefits, reducing the costs involved.
Related: Employee Retention : Why it Remains a Daunting Task at Startups
Profit-Sharing
Offering managers and long-time employees a share of the profits helps keep your best people in your business. Cash sends a strong message that you care and gives staffs reasons to be more driven to help the company succeed. It can also have very .
Automate
Different businesses have different processes that they could automate to . Automating something as simple as time-tracking spreadsheets on average can save .
Related: Expert Tips For Efficient Employee Retention Strategy
Education perks
Nobody’s perfect on their first day. The best managers know that they hire for potential and then focus that energy through training. Small business owners can actually rather than trying to find new team members.
Related: Data Reveal the 7 Factors for Optimal Employee Retention
Be human
Sitting down with your employees on a weekly basis gives them the chance to clear the air and keep people focused on their goals — not their gripes.
Remember that all of these tips may appear on the surface to cost money and time but keeping your employees happy will help sustain and grow your business in the long-run.
