11 strategies for building an outstanding employee retention …

11 strategies for building an outstanding employee

retention program on a small business budget

How to improve employee retention and engagement without breaking the bank

Copyright ? PeopleKeep, Inc., 2022. PeopleKeep? is a registered trademark of PeopleKeep, Inc. 11 strategies for employee retention

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Table of contents

Introduction.........................................................................................3 .What is employee turnover?......................................................... 4 Strategy 1: Hire Right the First Time............................................5 Strategy 2: Set your new hire up for success.......................... 6 Strategy 3: Benchmark and track your employee retention rates ................................................................................... 7 Strategy 4: Identify the perks your employees want........... 9 Strategy 5: Evaluate Health Benefits.........................................11 Strategy 6: Provide different benefits for different employment types........................................................................... 13 Strategy 7: Set clear employee goals and expectations....14 Strategy 8: Offer a clear career path......................................... 15 Strategy 9: Invest In Your Managers..........................................16 Strategy 10: Create a positive company culture.................... 17 Strategy 11: Recognize employee contributions....................18 How PeopleKeep can help............................................................19

Copyright ? PeopleKeep, Inc., 2022. PeopleKeep? is a registered trademark of PeopleKeep, Inc. 11 strategies for employee retention

@PeopleKeep

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Introduction

The U.S. Bureau of Labor Statistics revealed that the average overall voluntary turnover rate in the U.S. in 2021 was 32.7%. That's an increase from the five-year low of 25.2% in 2020. That statistic, coupled with more job openings than ever recorded in the Job Openings and Labor Turnover Survey's 22-year series, shows that attracting and retaining employees requires more effort from employers than ever before.

Most businesses have a strategy for attracting and recruiting employees, but what about retention? When a key employee is on board, how do you keep them from leaving for one of your competitors?

The loss of a key employee can be devastating. It can mean the difference between accomplishing key business goals and falling short.

Employee turnover also costs organizations time and money and can affect employee morale. It often leaves hiring managers scrambling to find, hire, and train a replacement without disrupting operations or breaking the bank.

According to Built In, the average cost of replacing an employee can be up to 150% of an employee's salary for technical positions or up to 213% for C-suite executives. And according to Gallup, the cost of replacing an employee could range between 50% to 200% of their salary.

See our article on the real cost of losing an employee

As you build your business, a well-strategized employee retention plan becomes just as important as recruitment--if not more. This is especially true for small businesses competing with larger businesses for top talent. So, where does an employer start with an employee retention strategy?

This guide will provide 11 practical strategies for building an outstanding employee retention program to keep your talent engaged and satisfied.

Copyright ? PeopleKeep, Inc., 2022. PeopleKeep? is a registered trademark of PeopleKeep, Inc. 11 strategies for employee retention

@PeopleKeep

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What is employee turnover?

Before we get too far in this guide, let's explain employee turnover and retention. Employee turnover occurs when employees leave your organization, including quits, layoffs, and terminations. An employee turnover rate measures how many employees leave a company in a specific period of time.

Employee turnover can be split into two primary categories: voluntary turnover and involuntary turnover. When we discuss turnover in this guide, we refer to voluntary turnover. This is when an employee chooses to leave your organization for other opportunities.

The following image illustrates the different types of turnover:

Turnover

Involuntary Turnover

Voluntary Turnover

Resignations

Retirements

Healthy Turnover

Regrettable Turnover

Avoidable Turnover

Unavoidable Turnover

Copyright ? PeopleKeep, Inc., 2022. PeopleKeep? is a registered trademark of PeopleKeep, Inc. 11 strategies for employee retention

@PeopleKeep

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There are many causes for employee turnover, many of which can be prevented with an employee retention strategy.

Common causes of turnover include:

? Low pay or poor employee benefits ? Lack of professional development opportunities ? Burnout ? Poor onboarding processes ? Feeling disrespected or unappreciated ? High employee turnover can decrease overall productivity at your

organization, lower employee morale, and result in lost time and money as you begin the recruitment process.

Strategy 1: Hire Right the First Time

One of the most critical steps in managing employee retention is ensuring that you're hiring the right people. Your top job candidates shouldn't just be qualified for their position; they should fit within your company culture.

Evaluate the future of the position you're hiring for

Many small businesses and startups are in a growth phase, meaning that as the business evolves, so does the nature of the positions. Business owners and hiring managers should consider if job applicants will be able to grow with the company.

An approach that provides structure to the hiring process to mitigate bias among candidates and plan beforehand about what's needed for the role can save time and ensure you're hiring the right candidates. Starting with a rubric and using a solid applicant tracking system (ATS) can make hiring much smoother.

Copyright ? PeopleKeep, Inc., 2022. PeopleKeep? is a registered trademark of PeopleKeep, Inc. 11 strategies for employee retention

@PeopleKeep

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