Why Employee Retention is Important
Employee retention is an ongoing challenge for a lot of businesses. While it is true that you can always hire replacements for individuals who leave your organization, there are a lot of disadvantages to hiring new applicants as opposed to retaining the team members that you have. Hiring new people costs more, for one thing. It also takes time to train them, especially in job positions where experience is required in order for them to be comfortable in the environment. Hiring new team members can also take time away from other tasks that may desperately need to be prioritized… which can, in turn, leave room for inefficiency, missed deadlines, and sloppier work.
In truth, keeping valuable team members from leaving your organization is definitely going to work to your advantage. The question is… how do you do it? How do you retain quality help in a job market where employees always seem to be looking for something better?
That is actually a great question, and answering it can shed a lot of light on what you can do, as a manager, to keep your team together. You may not be able to offer them everything, but there are actually a lot of things that you can do to keep valuable personnel from wanting to go to work for someone else. Of course, it may be easier for some managers than others to offer monetary incentives (depending upon what organization you work for), but you will find that any manager can find some practical, useful methods for tipping the scales back to their favor.
1) Treat Your Team With Respect
One of the biggest mistakes that most managers make is in not treating their team like the valuable assets they are. If you have a good team, or even a team that has been thoroughly trained and has experience with the company, then you need to remember that you are actually ahead of the game! At this point, you need to remember that your success is going to hinge on keeping your personnel happy with what they are doing. If they leave, you are going to have to start from scratch…so do everything that you can to keep them around. And as it turns out, showing respect for them as individuals may be one of the best things that you can do!
It is true that a lot of employees are looking for higher wages or a different type of job when they leave, but some of them actually grow to resent their job because of the way that they are treated by management! Avoiding this problem can really make a difference, and can drastically lessen the odds of you losing valuable personnel because they do not feel like they are getting the respect that they deserve.
2) Listen To Them
Showing an interest in what your team members have to say can make a huge difference to them. First off, you will likely be able to solve frustrating problems on their end if you will just take the time to accept feedback and ideas… and nobody is going to be more helpful to you in solving day to day problems than your team! They are in the middle of it every day, and ignoring what they have to say about it is never a good tactic.
Second, part of being successful as a manager hinges on your ability to take information and utilize it wisely… and feedback from your subordinates can definitely contain useable information! Treat it as an opportunity to open a dialogue, and always be respectful and willing to listen if they are coming to you with suggestions or ideas.
3) Offer Encouragement And Positive Feedback Regularly
Nothing is more appreciated by your employees then simply acknowledging that they have done a good job and telling them openly! Odds are very good that your team actually works much harder than you or anyone else gives them credit for, so make it a point to tell them how much they are appreciated on a daily basis! If you make them feel like they are truly valued by you and your organization, then they will be much less likely to leave due to discouragement or from not feeling as if they are valued.
These free eBooks will help you to develop the active listening and emotional intelligence skills needed to build the professional relationships that are at the heart of retaining the people who make up your team.
Active Listening eBook
This eBook describes what active listening is and how it can make you a more effective manager.
ISBN978-1-62620-963-3 (30 Pages) PDF, Kindle & ePub
Understanding Emotional Intelligence eBook
This eBook explains emotionally intelligent leadership, an idea that is now used routinely in almost all businesses and professional training programs.
ISBN 978-1-62620-967-1 (50 Pages) PDF, Kindle & ePub
Developing Emotional Intelligence eBook
This eBook will help you to develop your own and your team’s collaborative working skills.
ISBN 978-1-62620-969-5 (57 Pages) PDF, Kindle & ePub
Measuring Emotional Intelligence eBook
This eBook explains how you can measure emotional intelligence, something that can help you to decide which aspects of it offer the most opportunity for improvement.
ISBN 978-1-62620-968-8 (26 Pages) PDF, Kindle & ePub
- The direct cost of replacing an employee can be as high as 50–60% of the employee’s annual salary.
- The total cost, including training, loss of talent and organisational knowledge can easily double this figure.
- Remuneration does not usually play as large a role in employee retention as is typically believed.
- It is usually due to low morale, absence of a clear career path, lack of recognition, or a poor employee-manager relationship.
- All of these can be addressed to some extent by improving your own listening skills and emotional intelligence.
- Emotional intelligence can be defined as ‘Understanding one’s own feelings, empathy for the feelings of others and the regulation of emotion in a way that enhances living.’
- Not everyone agrees with Goleman’s model of emotional intelligence, but there is general agreement that emotional intelligence exists, that it is a factor in personal and professional success, and that it can be improved.