More often than not, the most expensive cost to your organization is your employees. Wages, benefits and annual leave take one of the biggest bites into your budget estimated on average of about approx. 40% of your total spend.
Having a poor staff retention rate is even worse. According to the Society for Human Resource Management, the cost of a bad hire is now estimated at 5x salary. Poor staff retention also has many other costs to the business too such as a loss of profit owed to ongoing new starter inexperience or the invaluable knowledge and influence of an employee you want to hold on to for as long as you can.
The key to retaining good staff fits into intelligent hiring and smart people management. If you don’t happen to be a hiring or management guru, there are still a few simple things you can do to retain your staff for longer.
Be Clear on What the Candidate Want’s from You at Interview
At an interview, it’s easy to focus heavily on what the candidate can do for you but it’s important that you define what the candidate is looking for from you. For example, if the candidate is seeking training opportunities be sure you are able to provide this early on. If they are looking for future promotional opportunities, check that you can provide visible scope for them to do this in the future. New hires will quickly suss out if your company is able to deliver on their passions and if you over-promised them at an interview. If it comes to this, they will leave.
Match your top performers with people of an opposite skillset
You should keep this in mind during both the hiring process and when managing your team moving forward. Top performers usually excel in one particular thing, so let them shine! Rather than slow them down with work that frustrates them, hire and team them up with people that enjoy bridging that skills gap. For example, shape your team by matching an analytical person with an idea’s person or a detailed oriented person with a decision-maker. This goes for character traits too. Having a team formed heavily with dominant characters can lead to an ego or decision-making war over progress. Compliment them with compliant characters that like finishing off the detail.
Ensure your 1-2-1 meetings don’t run like a tick list
Regular 1-2-1’s are important to track progress and offer feedback. It’s important you don’t just tick off what they’ve done. Tell them specifically what you liked about a piece of work. It could be something they wrote, a target they met or even something they said in a meeting. Employees need to feel appreciated and if you don’t tell them what it is that you like about their work, they’ll stop doing it! Pointing out the detail in their work also shows that you are paying attention to what they do and will make them feel both valued and appreciated.
Involve your employees in important decisions or changes within the company
Your employees make the company so why shouldn’t they have a say in changes and decisions that ultimately affect them? Work with transparency and ask for their input. If an employee’s idea is taken on board, be sure to publicly credit them. After all, an involved and appreciated employee is a happy employee!
Let go of burdensome employees
It’s never easy letting someone go but the performance of good employees and the company must come first. Burdensome employees aren’t just poor performers. They also include a particularly disruptive team member or negative people that bring others down. All team members need to be driving the spearhead in the same direction and good people need to be surrounded by other good people to prosper and ultimately accomplish the company goals too.
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