Here today and here to stay: Evaluating your employee retention program
By Debbie Lousberg
Your organization needs energized, dynamic people to represent you and all the hard work you've put into your business. They help you create stability and dependability, qualities that they and your customers value. Retaining your employees is absolutely critical to your business's success. While the tendency is to focus on production, operation costs and market share, retention programs easily get pushed to the wayside.
The statistics related to employee retention are staggering: According to a recent survey conducted by Chart Your Course International, it costs $4,000-$7,000 to replace an hourly worker and up to $40,000 to replace a midlevel, salaried employee. Other costs associated with employee turnover include lost customers, lost business and damaged morale, not to mention the hard costs of time spent screening, verifying credentials and references, interviewing, hiring, and training the new employee just to get back to where you started.
To top it off, 60 percent of the workforce is considering leaving their current job for another as the economy improves. Despite these known costs and loss of productivity, 54 percent of businesses still do nothing to focus on employee retention or reduce their high employee turnover. A satisfied workforce reflects a positive attitude about their jobs, you and the organization, and provides exceptional service to customers. Studies from the Gallup organization show that employees who have an above-average attitude toward their work will generate 38 percent higher customer satisfaction scores, 22 percent higher productivity, and 27 percent higher profits for their companies.
Take a look at your recent turnover statistics and current retention program to determine whether additions, adjustments, or a complete overhaul are needed.
Your program should have several well defined and managed components. Here are some ideas:
Ensure you have the right people in the right jobs. Conduct, or hire an objective party to conduct, an employee satisfaction survey and see what they really think about their roles and goals within your company. Topping the list of why employees stay at their jobs are salary, interesting work, benefits, enjoyment of co-workers, and sense of purpose. See where you and they stand.
Create Employee Development programs. Find out where employees want to go within the organization and help them take steps to get there. By comparing current skills with skills needed to advance, employees are clear on what they must do to move ahead. This succession planning can add significantly to your company's future success.
Provide motivational training workshops for employee improvement with current roles and responsibilities on topics such as time management, customer service, team building and communication skills.
Encourage self improvement outside of the workplace by sponsoring company sports teams, social activities, volunteer opportunities, or tuition reimbursement programs.
Show your appreciation and encourage funwith company sponsoredluncheons, contests, family picnics, and health and well-being fairs. Catch people doing things right and reward them on the spot. These actions speak volumes on how much you care about your employees personally.
Communicate clearly and openly with your team. Set well-defined boundaries and policies, and lead by example. Share the knowledge and empower your staff to become more engaged in their jobs. Invite the opportunity to share ideas and make suggestions and improvements.
Pay attention to exit interview results. Always, always gather relevant information as people elect to leave the organization. You will learn what is and is not working, views on company structure and management that you had not even dreamed of, and a variety of other valuable tidbits.
Provide competitive benefits, including paid vacation time. According to a study by the Families and Work Institute, one in three employees say they are chronically overworked, and more than one-third surveyed were not planning to take their full vacations. Encourage time off and away from the workplace, and just as importantly, heed your own advice.
Hire the right people to begin with. Take time to re-evaluate your job descriptions, pay rates, and recruiting and hiring practices. Review some applicable assessments that will help you determine the best candidate fits for your jobs.
You may have many resources and assets at your fingertips, but don't forget the most important one, your human resources. Treat your employees with respect and dignity and give them a great place to work. They, in turn, will enjoy coming to work, have high morale and strong productivity. They will be your best outside public relations people and internal team builders. Keep them happy and they will be here to stay.
Debbie Lousberg is a Career Coach and Trainer in North San Diego County. She helps individuals, entrepreneurs, and organizations see their unlimited possibilities and create a clear path leading to career and business success. Evaluating and designing Retention Programs is one of several employee-related services she offers to organizations. She can be reached at (760) 941-5166 or [email protected].
By Debbie Lousberg
Your organization needs energized, dynamic people to represent you and all the hard work you've put into your business. They help you create stability and dependability, qualities that they and your customers value. Retaining your employees is absolutely critical to your business's success. While the tendency is to focus on production, operation costs and market share, retention programs easily get pushed to the wayside.
The statistics related to employee retention are staggering: According to a recent survey conducted by Chart Your Course International, it costs $4,000-$7,000 to replace an hourly worker and up to $40,000 to replace a midlevel, salaried employee. Other costs associated with employee turnover include lost customers, lost business and damaged morale, not to mention the hard costs of time spent screening, verifying credentials and references, interviewing, hiring, and training the new employee just to get back to where you started.
To top it off, 60 percent of the workforce is considering leaving their current job for another as the economy improves. Despite these known costs and loss of productivity, 54 percent of businesses still do nothing to focus on employee retention or reduce their high employee turnover. A satisfied workforce reflects a positive attitude about their jobs, you and the organization, and provides exceptional service to customers. Studies from the Gallup organization show that employees who have an above-average attitude toward their work will generate 38 percent higher customer satisfaction scores, 22 percent higher productivity, and 27 percent higher profits for their companies.
Take a look at your recent turnover statistics and current retention program to determine whether additions, adjustments, or a complete overhaul are needed.
Your program should have several well defined and managed components. Here are some ideas:
Ensure you have the right people in the right jobs. Conduct, or hire an objective party to conduct, an employee satisfaction survey and see what they really think about their roles and goals within your company. Topping the list of why employees stay at their jobs are salary, interesting work, benefits, enjoyment of co-workers, and sense of purpose. See where you and they stand.
Create Employee Development programs. Find out where employees want to go within the organization and help them take steps to get there. By comparing current skills with skills needed to advance, employees are clear on what they must do to move ahead. This succession planning can add significantly to your company's future success.
Provide motivational training workshops for employee improvement with current roles and responsibilities on topics such as time management, customer service, team building and communication skills.
Encourage self improvement outside of the workplace by sponsoring company sports teams, social activities, volunteer opportunities, or tuition reimbursement programs.
Show your appreciation and encourage funwith company sponsoredluncheons, contests, family picnics, and health and well-being fairs. Catch people doing things right and reward them on the spot. These actions speak volumes on how much you care about your employees personally.
Communicate clearly and openly with your team. Set well-defined boundaries and policies, and lead by example. Share the knowledge and empower your staff to become more engaged in their jobs. Invite the opportunity to share ideas and make suggestions and improvements.
Pay attention to exit interview results. Always, always gather relevant information as people elect to leave the organization. You will learn what is and is not working, views on company structure and management that you had not even dreamed of, and a variety of other valuable tidbits.
Provide competitive benefits, including paid vacation time. According to a study by the Families and Work Institute, one in three employees say they are chronically overworked, and more than one-third surveyed were not planning to take their full vacations. Encourage time off and away from the workplace, and just as importantly, heed your own advice.
Hire the right people to begin with. Take time to re-evaluate your job descriptions, pay rates, and recruiting and hiring practices. Review some applicable assessments that will help you determine the best candidate fits for your jobs.
You may have many resources and assets at your fingertips, but don't forget the most important one, your human resources. Treat your employees with respect and dignity and give them a great place to work. They, in turn, will enjoy coming to work, have high morale and strong productivity. They will be your best outside public relations people and internal team builders. Keep them happy and they will be here to stay.
Debbie Lousberg is a Career Coach and Trainer in North San Diego County. She helps individuals, entrepreneurs, and organizations see their unlimited possibilities and create a clear path leading to career and business success. Evaluating and designing Retention Programs is one of several employee-related services she offers to organizations. She can be reached at (760) 941-5166 or [email protected].