As a 2015 article at Entrepreneur.com explains, employees leave jobs the most often because they feel that the company culture is not a good fit for them. The job itself may be perfect, but the co-workers, stress level, feeling unappreciated, or a variety of other reasons may push them out the door even if the position is a good fit for their experience and talents.
All companies have turnover at times, but a constant churn of seasoned employees quitting and new ones taking their place has significant consequences. The most obvious one is that it costs a lot of money to recruit a replacement for the departing employee. After advertising, screening, interviewing, and finally selecting the best candidate, there’s still the matter of training him or her to fulfill the duties the previous employee had down pat. Conservative estimates state that it costs twice the former employee’s annual salary to find and train someone new.
If all of this sounds discouraging, take heart. You can do several things as a business owner to slow employee turnover and create a company culture that no one will want to leave. That is because they will understand how good they have it right where they are today.
Create Your Own Company Culture and Hire People Best Suited to It
You should aim to create a culture that generally flows with your industry while carving out a unique spot for your company at the same time. However, you need to know exactly what your business stands for before you can do this. Who are you trying to reach and what people do you need to have on your team to attract them? It’s only after you decide what your company is truly about that you’re ready to hire your first employees.
Smart hiring is about more than choosing an employee based on his or her experience and education. You also need to go beyond selecting the one who only says what you want to hear. Behavioral-based interviewing is one way to go about this. With this interviewing style, you frame questions in such a way that it allows the candidate’s non-tangible skills to come out as well. This could include such things as overall attitude, adaptability, and taking personal responsibility for mistakes.
Make Sure Everyone Understands Company Values
People are much less inclined to leave a company when they understand its core values and goals as well as how they fit into them. This is one reason why it’s important to set formal goals and to let employees know when they have achieved them. Keep in mind that everyone appreciates recognition for a job well done. Don’t miss an opportunity to reward people at the individual and group level for contributing to the success of your business.
Transparency and Flexibility
While you may not be able to share every detail about your business, regularly keeping employees informed helps them feel connected and committed. Employees also care about a lot more than just salary and benefits. For example, offering flexible scheduling to proven employees to help them balance their work and personal life sends the message that you care. An employee who feels cared for will be more loyal. This simple act pays for itself in reduced employee turnover.
At Palmetto Payroll, we want your business to be successful, and we want to help! Contact us for guidance or to learn more about the services we offer that can make running a business a whole lot easier.