Tips for Improving Employee Retention

Ways to Improve Employee Retention

Many times, high employee turnover means that management has lost touch with the employees.

Some people may say, "it's horrible flipping burgers" but at another establishment where "burgers are flipped," employees would say, "I love where I work!"

It's not only the job and pay that keeps employee retention high; it's also due to an atmosphere created by an understanding and fun-loving management. Even the worst job can be made pleasant in a warm and cooperative work environment that allows for some fun.

Many people leave companies because they think their work isn't good enough ("I'm always being yelled at") or feel that if they have an idea or complaint that management won't listen.

It is up to management to create open avenues for employee communication. There should be an open-door policy and suggestion box near the employee lounge or break room.

Additionally, communication should be open between employees. If there is friction between two employees, they should have a low-key meeting with a manager who is only there to mediate and lay down ground rules such as, "no finger-pointing."

Oftentimes, employee-to-employee communication breaks down due to gossip, innuendo, and assumptions. The manager's job as mediator is to facilitate honest feelings so that truth can be uncovered. Many times, at the end of such meetings, the two employees become closer coworkers.

For the most part, employees like to have challenges, room for creativity and growth, and employee incentives. If you think "incentives" equal "money," you're partly right. Bonuses can be given for outstanding employee performance or to employees who meet a challenge, such as reaching a monthly goal for sales.

While money is a nice bonus, other employee incentives include paid days off, movie tickets, or dinner for two at a favorite restaurant.

Employee incentives maintain employee retention because employees know, without a shadow of a doubt, that it's not "all about the profits" and that their contributions to the strength of the business have to do with their combined efforts.

Some companies have a lower employee retention rate simply because employees could not hold out any longer for that "golden carrot." Some companies base promotions on seniority or time with the company while others promote based on performance. Likewise, some companies promote from within and some hire from outside the company.

Employee retention levels can often be increased by explicitly explaining how promotions are gained. By knowing the "rules" up front, employees will be more likely to enjoy the challenge of "working their way up the ladder," and retention will improve.

Points to Remember

• Management must take the initiative to provide strategies for improving employee retention.
• Management must provide the means for open and clear communication among employees, and between employees and management.
• Management can include milestone employee incentives to match goals met by employees such as gift cards for movies, dinners, and cash.
• Management must make clear in employee handbooks, meetings, and post that employee rights are honored by the company and there is fairness in tip-sharing, vacation time, and promotions, to name a few common areas.

Employee Retention Tips

Tools and Tips for Employee Retention

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