Employee
turnover is a fact of life in the business world, and not necessarily a bad
thing—particularly if new entrants are exceptionally skilled and qualified, and
the rate of turnover is manageable. But if you’ve experienced
higher-than-normal employee turnover, you know how
disruptive it can be to the
day-to-day operations of your business.
Regardless
of their experience, credentials, and expertise, new hires require training and
time to both become familiar with the workplace and integrate themselves
successfully into its social milieu. Whereas employees who’ve been with the
company for a while have had ample opportunity to learn by doing and develop
automaticity with mundane tasks, newcomers initially tend to perform these
duties more slowly and less sure-handedly. At least temporarily, this can cause
friction, encumber productivity, and detract from the bottom line.
Much of
the advice that follows can be encapsulated in a simple axiom: If you want your
employees to stick around, give them good reasons to do so.
During
the hiring process, favour candidates who seem compatible with your company
culture.
Begin
with a list of “must-have” qualities for candidates, and narrow the search down
to individuals who meet those criteria. Include not only professional
qualifications, but social skills and personality traits as well. Is this
person equipped to handle the unique challenges of your business? Does s/he
seem like s/he would get along well with the other staff, and
customers/clients?
Do some
research into the job market. What kind of compensation are employees in
comparable positions receiving elsewhere?
Search
online job boards for positions requiring a comparable skill set, and pay
attention to the compensation and benefits that other companies
offer—especially your competitors. If you can’t match other businesses in terms
of salary, you’ll probably need to offer non-financial incentives—such as a
flexible work schedule, greater convenience, shorter hours, or legitimate
prospects for upward mobility—to convince employees to stay.
Praise
good work, and offer specific constructive criticism of not-so-good work.
Everyone
likes to hear that s/he has done a great job. By taking the time to provide
positive feedback and congratulate employees on their successes, you will both
enhance their positive feelings about the company and encourage desirable work
habits.
Delivering
criticism of less-than-stellar work in a diplomatic manner, without provoking
defensiveness or resistance, is one of the most delicate tasks that managers
face. Begin by mentioning at least one thing you appreciate about the recent
efforts of the employee in question. When you arrive at the substance of the
critique, be very specific about what you would like that person to do
differently. Avoid accusatory statements; instead, favour phrases like “In
future, it would be great if you could (specific instruction).”
Offer
opportunities for growth and development.
Ideally,
a relationship between employee and employer is mutually beneficial: the
employer garners an opportunity to elevate h/er business to new heights with
the help of a talented professional, while the employee enjoys the chance to
grow, cultivate new skills, and experience success in a business environment.
But an employee is in no way beholden to your organization; at some point, s/he
will consider moving on in search of greener pastures, especially if s/he
detects a risk of career stagnation. By offering reasonable opportunities for
learning, growth, and career advancement, you increase the likelihood that
employees will remain with your company over the long term.
A raise
or bonus can be a powerful motivating tool.
Even
a modest salary increase sends a psychological message to employees that the
company’s managers value their hard work, and would like it to continue.
