3 Tips For Retaining Employees In A Competitive Market

Happy Worker

With unemployment hitting 5.0% it is becoming a job seekers market. Gone are the days when a business can take their pick of the little and fill a position almost as quickly as its posted to their jobs board.

The goal for many companies these days are to retain the top talent they already possess.

If you can maintain your employees and keep them happy, your training costs lower and you end up with talented workers who enjoy their job and actually want your company to succeed.

Here are three tips that you can implement right now to retain employees.

Culture

Company Culture

Every company has its own culture. If you want to retain employees part of your culture needs to be a “feeling of belonging.”

How do you make employees feel wanted? You foster a feeling of building something together.

Start with a clearly defined vision. Make sure your employees know where the company is headed and show and tell them how they can do their part to reach that shared vision. This gives your employees a sense of purpose and makes them work together as a team.

Build strong leadership. The saying “employees don’t leave companies, they leave managers” is very true. If you have strong leaders who guide, coach, and help employees when they need it, and even when they don’t, but will appreciate it, you end up with a longlasting culture.

Thoughtfulness: Understand your employees liked and dislikes. Learn about the charities they support and the things they like in life. Don’t get personally involved with your employees but learn what they love and see if that love has common traits among your workers. Show your employees that you support them at work and that you appreciate their lives away from the workplace.

Professional Development

Man giving lecture to three people in computer room

A recent study found that the number one request among entry-level employees is the ability to learn new skills that will help them with their careers. In fact, many of those employees said learning new skills and general professional development was more important than a raise, especially early in their careers.

A 2012 study by Linkage, Inc., found that more than 40% of respondents said they’d consider leaving their present employer for another job with the same benefits — if that job provided better career development and greater challenges.

Successful companies often follow a simple 70-20-10 rule when it comes to their employee’s professional development:

  • 70% – Challenging assignments, stretch goals and on-the-job experience
  • 20% – Coaching, feedback and networking
  • 10% – Formal training and development classes

Employee training and assimilation into the culture begin the day you make the hire.

Compensation

Employee Compensation

Be fair with employee wages. Someone with the same skills and experience should be paid the same as their co-workers.

Examine your competitors and see what they offer in terms of flexible work schedules, telecommute options, and paid time off standards.

Giving a fair compensation package to your employees will keep them engaged and keep their eyes off the exit door.

This is important. Make sure your employees fully understand all of the amazing benefits you give to them. That includes health insurance coverage, 401(K) matching, and even maternity/paternity leave.

If you want to retain your employees, remember that fairness and always challenging them in a constructive way is the key to long-term retention.