High employee turnover is a big concern for many companies, and it can cost a lot more money than they imagine. A big revolving door means that more money has to be spent on recruiting, interviewing, and training employees. And there’s no guarantee that these employees will stay either.
Not only that, but a high turnover in business means that you have less experience on the floor, which can lead to dips in production and a higher incidence of accidents. Thankfully, increasing employee retention rates can be done if you’re ready to take the efforts necessary. Let’s take a look at a few ways things you can do to improve your company’s employee retention rate.
Ways to Improve Your Company’s Employee Retention Rate
1. Institute a Mentorship Programme
One of the simplest and most effective ways to keep more of your employees is to give them mentorship opportunities. One study by MentorclIQ found that employee retention rates increased by 13% after employees were in one single mentorship relationship. Imagine if you allowed your employees to have long-term goal-oriented relationships with the perfect mentor for their needs and objectives.
To do this, however, you need to have a proper system in place to track relationships and match employees correctly. This is why we suggest that you invest in this mentoring software. Mentoring software from PushFar will automatically match employees with the best mentors for them using advanced technology like AI and machine learning. It will also help set assignments and reminders and track results. This is the perfect tool both for companies with employees stretched in different markets and smaller ones that want to eventually expand and set their mentorship programme on a solid foundation.
2. Improve Your Benefits Package
You also have to check how competitive your benefits package is. Look at what kind of perks other companies in your sector are offering and if your package is up to par. If it isn’t, then you will have to find a way to improve it.
If you can’t get preferential deals by dealing directly with providers, you could work with a private employer organisation. These companies can negotiate better deals with providers because of volume and will pass down those savings to you. Not only that, but they will also take over functions like payroll and HR for you if you wish, which could further help improve your retention rates. This brings us to our next point.
3. Consider Outsourcing Your HR Function
A lot of business owners will be open to outsourcing a whole host of functions but will refuse to hand over HR to someone else. But if you’re having retention problems, there’s a strong chance that there’s something wrong with your recruitment process.
Maybe your listings are sending a false idea of what your workplace and the position are like. This is a sure-fire way to lose an employee and lose them early. Alternatively, maybe you’re not being detailed enough about an employee’s function.
Some companies also have trouble reconciling their company culture with their listing. Some don’t have a culture at all. These are all things an outsourced HR team could help you with.
A third-party team will craft the perfect kind of listing for the type of employee and the position you want. They will conduct preliminary interviews to filter out bad matches and will usually be able to find great prospects much faster. Not only that, but they can help with onboarding, training, evaluations, and exits as well.
By hiring better, you’ll be able to keep your new employees longer and make your senior employees happy since they won’t have to constantly have to babysit new hires.
4. Give them More Freedom
Some companies allow employees to choose when breaks are more convenient for them. Others introduce hybrid work arrangements with hot desking. All these things could help boost both retention rates and engagement.
This is especially true if you have lots of millennials and gen Z employees coming up. This new crop of employees is starting to expect to have some level of flexibility when it comes to working arrangements. If you have been slow to introduce remote work options or you’re opposed to it and it’s becoming the norm in your industry, then you can expect many of your employees to leave.
So, at least consider if it would be possible to let employees have own home workplace and work remotely at least once or twice per week. If you can’t, try to make the schedule and shift structure less rigid, and even consider giving them more free time.
These are all things that you could do in your organisation if you’re concerned about rising employee turnover. You should also try to keep your ear to the ground regarding what’s going on in your industry and give your employees a way to grieve their concerns to you easily.