Seven Steps To Increase Employee Retention

Sep 22, 2015

Seven Steps To Increase Employee Retention

Losing an employee is costly in many more ways than just money. High turnover causes companies to lose time, productivity, and of course—money. All of those things can be detrimental to a company's success.

With unemployment compensation, exit interviews, replacement costs, training and re-training, and overall productivity costs, it is smart to make a conscious effort toward increasing employee retention and job satisfaction. According to Cornell University, an estimated cost of losing just one employee can range from 30 percent of the annual salary of the position for hourly employees to up to 150 percent!

Taking these high costs into account, company leaders need to take time to focus on ways to keep their best employees on board with them. Job satisfaction can be attributed to these top five factors:

  • Opportunities to use skills and abilities—63%
  • Job security—61%
  • Compensation/pay—60%
  • Communication between employees and senior management—57%
  • Relationship with immediate supervisor—54%

When you look at these percentages, take a second to reflect on your company and where you believe the satisfaction is with these five factors. ZERORISK HR can help you identify this and even build upon it.

There is a seven-step strategy recommended to increase employee retention—it even helped a Fortune 500 company realize a 67 percent increase in retention in the first year of implementing this strategy.

  1. Conduct job analysis audits to provide realistic job previews. Taking the time to define the core competencies required for success in each role will help preview the job for candidates and managers. Creating clear expectations will help managers know what they need for a certain position.
  2. Use a well-designed assessment and hiring process. Implementing behavioral assessments and behavioral interview techniques, like the ones offered through the ZERORISK Hiring System, will increase the opportunity of hiring the right fit for your environment.
  3. Provide a good employee orientation. Value every employee who joins the team—whether he or she enters in a senior position or not. This creates motivation and an overall strong morale.
  4. Employee training and development. Show compassion and willingness to help your team succeed by offering ongoing professional development.
  5. Create strong manager and employee relationships. Many times, people leave a position because of the leader, so learn what makes everyone happy and make it a habit to give it to them!
  6. Be competitive with your pay!
  7. Encourage succession planning. Giving employees the motivation and drive to grow in the company will keep them around. Allow opportunities for shadowing, mentoring, and more to make sure your team is taken care of.

You may have already implemented some or all of these steps, but taking time to constructively criticize your progress in each one can help your company skyrocket to become one known for its loyal and happy employees. The ZERORISK Hiring System can work through each of these steps alongside you and your team to evaluate and improve your current turnover and retention rate.

ZERORISK helps organizations build great cultures by identifying, developing, and retaining top talent. The ZERORISK Hiring System blends a revolutionary behavioral science with state-of-the-art technology to reduce unwanted turnover and improve employee performance. For more information contact us at (800) 827-5991.

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