Employee Retention Techniques

Finding a great employee takes effort, and keeping a good one long-term is a major accomplishment. If you're a business owner, you know that hiring and training employees takes an enormous amount of time and energy and always results in lost productivity. By some estimates, replacing an employee even a mediocre one can result in the loss of up to 20 percent of that worker's annual salary. And there's nothing worse than investing in a great prospect, only to have him or her move on in six months for the next best opportunity.

Here are some tips to help Ohio business owners find, and keep, the best employees for your business:

Know what to look for: Many ineffective hires can be avoided by using a thorough and conscientious interviewing process. This often starts with close scrutiny of candidates' cover letters and resumes, as well as their pre-interview etiquette. Look for gaps in employment history, inattention to detail, and clues as to whether your prospect is looking for a career opportunity or just a stepping-stone.

Take training seriously: Nothing is more disconcerting to a new employee than being asked to perform well without having been properly trained; or getting shown the ropes by another relatively new hire. Take the time to develop and standardize quality training for each position in your company, and give your new hire a decent amount of time to learn the job.

Show you care: Employees who feel valued are much more likely to tolerate the not-so-great aspects of a job and stick around. Look for ways to praise your staff, both individually and as a whole. Small, cost-effective perks, from bagels and coffee to flexible work hours, can go a long way in making your company known as a great place to work.

Pay a better wage: Studies show that employees who are paid more work harder, period. It may seem counterintuitive if you're trying to grow your business on a tight budget; but offering a competitive wage might actually help you get more out of the employees you already have, while protecting your business from the substantial losses that come as a result of high turnover.

Incentivize performance: Offering incentives for increased sales or productivity can increase workers' output and create a fun environment at the same time. Whether you plan to offer small rewards or major bonuses, look for incentives that are meaningful to your employees and they will be sure to have a positive effect on performance.

Promote internally: Encourage strong employees to apply for higher-level positions, seek advanced training, and learn new things. Make it clear that you value your employees' continued professional growth and want to help them realize their long-term goals.

Value communication: Open communication is critical to keeping your staff and business healthy and productive, not to mention competitive. Foster an environment of trust and honesty, where quality employees have a safe place to make mistakes and take risks. Provide a venue for honest feedback, and when it's given, be sure to listen.

In the final cost-benefit analysis, the cost of hiring and training new employees far exceeds the cost of offering a competitive wage and benefit package to great employees. Make a commitment to reducing turnover in your business, and save yourself precious time, money, and stress.

For more information about business insurance, call or contact Mathews Insurance, Inc. today.

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