One of the largest costs that companies face is hiring and retaining qualified employees. High turnover rates for day-to-day operational jobs costs the company training expenses, as well as reduced productivity.Companies have developed ways to reduce staff turnover that have proven to be successful. The most successful strategies are the ones that require appropriate planning and implementation. These steps most commonly occur during the hiring process, reducing long-term costs associated with retention.
Hire the right people for the right jobs. Determine the qualifications needed for the job and the personality of the individual being interviewed. Find someone who's qualified and has a history of loyalty to the company. Employees stay with companies they feel they connect with and if they have a path for advancement. Avoid individuals who have worked multiple jobs in the past few years.
Offer competitive benefit and pay packages to those at similar companies. Compare health insurance, 401k contributions, salaries, office sizes, perks and other benefits offered by competitors. Increase benefits where possible to meet or exceed others in the industry. Offer innovative new programs and benefits that others don't offer. This helps you stand out in the industry for hiring and retention.
Encourage and praise employees for good performance. Offer employee appreciation days and interoffice competitions. Employee-of-the-month programs and certificates are low-cost ways to boost employee morale and retain employees. Management should offer verbal praise to employees when warranted. Employees who feel appreciated for the work they do are more likely to stay with the same company.
Keep employees motivated with educational and job advancement opportunities. Offer training programs and promotions through the company. Allow employees to earn new responsibilities and pay increases for performing well. The prospect of more responsibility and pay gives employees a reason to remain with the company long term.