Employee retention refers to a company’s ability to keep their valuable talent and people. Not only is it frustrating to have to replace people, but it’s expensive!
At MBI, we have put together a series of member retention resources that can be found on our website here: https://mbi.build/login/. All MBI members have access to these resources and can be manipulated and/or changed to fit your mission. Having spent considerable time researching ways we can provide materials to our members, we stumbled upon a really great article with advice from Forbes Advisor. This month’s blog post highlights that post.
From Forbes Advisor…..
Happy and engaged employees are more productive and less likely to leave a job in search of greener pastures—and no, we’re not just talking about the color of the grass. Employees will feel more valued when they know their employer cares about them and recognizes their contributions, so as an employer it is critically important to show your appreciation for your employees and all the work they put into keeping your business running. Here are 5 ways to ensure your employees know how much you value them and the work they do.
- Give Them More Money
Nothing says “I value your time and effort” more than a better-than-adequate paycheck. The number one way to obtain and retain quality employees is to pay them a better-than-livable wage. Though it seems obvious, many business owners offer and pay low salaries or hourly rates, then complain that they cannot find enough prospective employees. It’s important not to be fooled: Some people do want to work, but not if their wages aren’t enough to pay their bills. Others don’t want to work, but will get a job done well if paid properly.
No employee appreciates cheap distractions or pizza parties while they’re working overtime and worrying about making ends meet. Pay above-adequate salaries, and you’ll watch employee happiness and retention rates skyrocket.
Nothing else on this list is more important than paying your employees well. If your business is feeling the effects of inflation, remember that your employees are too. Especially when it comes to employees who haven’t received a raise in years or whose raises haven’t kept up with their increased experience and the rising cost of living, a raise can make a huge difference.
- Ensure Adequate Staffing
No employee is interested in being worked to the bone so that an employer can save money. One employee doing the work of two or three is a guaranteed way to increase mistakes, burn out your best workers and decrease job satisfaction. Show your employees you care about their well-being by hiring enough people for the job.
- Provide Comprehensive Benefits
The United States is one of the only high-income countries without universal healthcare, despite other countries’ long-demonstrated success in adopting these systems. Unfortunately, this lack of universal healthcare means accessing and affording healthcare services in the United States can be difficult and, to many, seem impossible.
The cost of both healthcare services and health insurance premiums can be incredibly high, and for some people the only way to afford healthcare or insurance is by taking advantage of lower-cost plans through an employer. By offering a low- or no-cost plan that provides top-tier coverage, you can directly ensure your employees can receive both preventative care and any necessary treatments. Healthy employees create healthy workplaces.
- Offer Unlimited PTO
Many companies have adopted unlimited PTO policies with positive results. Allowing your employees to take time off when they need it, with fewer restrictions imposed, can help to decrease stress levels, build trust and promote retention. As an employer, acknowledging that your employees have a life outside of work is a great way to show your appreciation for their value as individuals, not just as cogs in the business machine. Trusting your employees to manage their own work-life balance while giving them the freedom to do so can also breed loyalty and lead to better work productivity.
- Offer Paid Family Leave
Unlike other high-income nations, paid parental/family leave is not mandated for employees within the United States. The Family and Medical Leave Act (FMLA) only grants 12 weeks of unpaid leave to new mothers, fathers and caregivers of sick family members, and that’s only for those who work for companies with 50 or more employees. The World Health Organization recommends at least 12 weeks of leave for new mothers. No other leave is mandated federally by the United States, though some individual states have supplemented these benefits for employees within their state.
Offering paid leave for mothers, fathers and caregivers makes a tremendous difference to your employees welcoming a new child or caring for a sick loved one. Knowing a company also respects your family and the priority it takes can be a huge motivation for many employees to remain loyal and value their experience at work.