Employee retention is increasingly important to businesses both large and small. With low unemployment rates, companies are competing for both attracting and retaining top talent. It costs an average of 33% of an employee’s salary to find a replacement, and it can increase to 50% when factoring in the loss of productivity, time spent training, and supervising required with the replacement process. Money is important and speaks to business owners, but further than that, a high employee turnover rate can rattle the company culture and affect the core of your business. Here is how to increase your employee retention:
Set clear company values
Live by these values and believe in them. An important part of the hiring process is to hire individuals that have the same vision for the company that you do. Living up to company values is a sure way to create a collective company culture that each employee can feel ownership over.
Invest in Your Employees
Technology to benefit not burden. New technology and automation processes should benefit your employees, not cause burden. Adding extra steps to their work flow in order to save a couple bucks may cost you in employee happiness, engagement, and ultimately their resignation. Instead, invest in your employees through further learning opportunities. 39% of business owners offer professional development as a benefit of the job.
Increase Employee Engagement
You can increase engagement through various initiatives that align with your company values. Offering bonuses is an old method of retaining employee’s efforts, but throwing money at your employees isn’t the most reliable or best method of earning dedication. Some employees want flexible work options and others want recognition or access to senior level leadership. Making these benefits available to your employees yields higher engagement and overall job satisfaction.
Attraction and Compensation
Employees are looking for a salary at or above the market price for their labor. Yet equally important as salary are benefits like: insurance, retirement plans, and paid time-off. Employers have been reporting using workplace flexibility, social media, higher salaries, and philanthropy to attract top talent. Vacant job roles eat up the time and energy of the business owner and other employees, and nearly all business owners find that half of their job applications are from unqualified candidates. Applicants look at small businesses for greater creativity, collaboration, responsibility, and less red tape.
Besides opening your company up for lawsuits, not paying your employees in full or on-time is a surefire way of losing those employees. Cash flow management can be difficult between paying your suppliers, covering overhead, and meeting payroll deadlines. In fact, many business owners cite cash flow as the cause of their failed business. Freeing up your working capital doesn’t have to be stressful. Invoice factoring involves the sale of your receivables to a factoring company at a discount. This immediate payment can meet payroll and make for happier employees. Selling your open invoices to a factor means focusing on maintaining the company culture, growing your business, and meeting your employees’ needs, all without the stress. Could you use help increasing your employee retention? Give us a call.