Let’s face it: finding the kind of talent you need to give your business the competitive edge is tough, but what’s even tougher is holding on to that talent. Gone are the days when a gifted young upstart fresh out of college takes a job with a company and remains there throughout her professional career. According to estimates from the Bureau of Labor Statistics, today’s younger baby boomer will have held an average of 12 different jobs in their lifetime. If you’re a millennial, the number is even higher, with the churn rate of young workers three times that of preceding generations.
And that’s not good news if you own a business. If your company is hemorrhaging employees, that also means it’s hemorrhaging money. When you lose an employee, not only have you lost the skillset for which they were hired, but you also lose productivity. And lost productivity means lost profit.
What you gain, however, are additional costs in recruiting and retaining new talent. In fact, the costs to replace an employee can be as much as 50% of annual salary for an entry-level worker—and for a senior executive, those costs can soar to as much as 200%! So, what can you do today to hold on to your most talented employees for many tomorrows to come? Read on to find out!
Find the Right People
The first step to holding on to your most talented employees is to make sure they’re the right fit before you even hire them. If your company is understaffed or there’s a particular position that needs to be filled urgently, the temptation to rush the recruiting process can be great. But that’s a mistake.
It’s far better to take the time you need to ensure that the candidate you have your eye on is a good fit for your company’s future as well as its present. Incorporating this long-term strategy into the hiring process is going to help you weed out those candidates who are only interested in or fit for a short tenure, versus those who are willing and able to invest in your company for the long haul.
Make a Good First Impression
It might feel like onboarding and retention don’t have much in common, but that’s actually not at all the case. In fact, your new hire’s onboarding experience is probably going to set the tone for how they feel and think about the company. Unfortunately, though, onboarding is something not many employers pay adequate attention to. Want proof? An estimated 42% of new hires don’t even have their own computers or workstations on the first day!
If the onboarding process is confused or haphazard, if the company seems unprepared for the introduction and integration of the new employee, that’s certainly not going to reflect well on the business, its staff, or its processes. And once you’ve lost your new hire’s trust, it takes a lot of time and effort to get it back. Worse, if your employee doesn’t trust you or feel good about the company in general, you’re probably not going to keep them very long.
If a new employee is being integrated into an existing team with a strong bond, your onboarding is going to have to include more than just making sure the new recruit has a workstation and some tasks for the first day. Team building will be essential to cultivating trust not just between you and your new hire but between them and their new team. At this early stage, encourage team building via more informal activities like daily huddles or team outings. These will allow all parties to get to know each other and foster bonds that will help everyone succeed.
Grow Your Talent
While it’s key that you screen your candidates carefully and that you provide your new hires with a seamless and skilled introduction to your company, your work is far from over. It’s just beginning, in fact. Because once you have your talent in place, you need to cultivate it. People don’t like to be bored. They don’t want to stagnate. And no matter how skilled your employees may be, there’s always room, opportunity, and desire for growth.
This is why professional development needs to be central to your retention strategy. Hiring a chief learning officer (CLO) for your business is a wonderful way to help you cultivate—and keep—your best talent. The goal, ultimately, is to provide your employees with robust opportunities to learn new skills and expand existing ones, to pursue new degrees, certifications, and licensures, and to advance within the company. Essentially, if your employee can see a future with your company, they’re more likely to stick around to make it happen.
Run the Numbers
Thanks to the brave new world of data analytics, employers now have more and better tools than ever to know their business and their employees. In fact, people analytics are a powerful way to monitor the performance, engagement, and satisfaction of your workforce. Best of all, these resources can help you spot emerging trends that might compromise morale or lead to the loss of your best people. And once you’ve identified the threat, you can do what you need to end it before it escalates.
Now more than ever, business owners need savvy to ensure their businesses thrive in an increasingly competitive global business environment. Developing successful employee retention strategies is one of the most potent weapons employers have for cultivating an efficient, cohesive, and high-performing workforce to cope with the formidable challenges of doing business in the new millennium. What it takes, though, is a strategy of careful recruiting, seamless onboarding, continuous talent development, and the integration of the latest and greatest in people analytics software.
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