Employee retention is an integral, yet often times over-looked issue for any business. The importance of retaining star employees goes much deeper than most may think. Employee turnover rates are one of the first statistics potential employees will look at when considering a job. In addition to reflecting poorly on the company, losing employees often can also prove to be very costly to a company. Training and recruiting costs are extremely high, and can be detrimental to any company’s budget. In addition to the monetary damage, companies with high-turnover rates also suffer loss of productivity. Having to re-train employees is time consuming, and can use up valuable employee resources.
Above all, high turnover rates often reflect a company that is not a favorable workplace environment, one that potential employees may shy away from.
Zappos.com is a successful company that has prided their entire brand identity on their loyalty business model. A loyalty business model is one in which the company’s employees are hired with the sole purpose of developing customer loyalty. By developing these relationships, a company will develop a strong foundation on which to build solid customer relations. This business model has made Zappos one of the leading Fortune 500 companies, year after year.
When discussing employee retention, it is important to review what it is that makes employees want to stay with a company. Chief amongst the list would be compensation, followed by issues such as valued leadership, incentive, and recognition.
Here are some useful tips for increasing retention amongst employees:
– Acknowledge and reward your employees contributions, and provide regular feedback
– Make sure compensation is fair and competitive
– Provide a forum to encourage new ideas and open communication
– Provide training programs and mentoring
– Provide employee assistance, wellness and health programs
– Offer flexible work arrangements, such as varied hours and the possibility of telecommuting
– Provide incentive and leadership possibilities
The more focus a company puts on these items, the more likely it is to be held in high regard by its employees. The bottom line is, employees want to know that their employers care about them. When this relationship is built upon, the bond between employee and employer will strengthen, along with brand loyalty.