Let’s talk about employee retention and turnover. 81% of small business owners say that turnover is costly and 79.3% of them say it’s detrimental to business growth. That’s according to a June 2019 Zenefits study.
But here’s the thing, 77% of the reasons employees quit could have been prevented by the employer. That’s according to the 2019 Retention Study by Work Institute, which highlights key ways to improve employee retention like career development, work-life balance, manager behavior, compensation and benefits, and well-being, among others.
Keeping your workforce happy and engaged is essential, and it doesn’t have to be expensive. But you can’t just offer free snacks and stale donuts and expect to move the needle on retention. Here are two proven ways you can attract and retain talent.
1. Help them grow their skills.
Career development is one of the main reasons employees move on to another company. Today, there are plenty of ways you can offer training and skill development without breaking your budget. Consider a mentoring program, where senior staff take a new employee under their wing and teach them increasingly complex tasks, answer their questions, and ensure they are getting the information they need to do their jobs well.
Hold weekly or monthly lunch-and-learn sessions to discuss market trends, sales tactics, information specific to your industry, and the like. Have each employee take turns sharing their unique skills and knowledge, which will keep even your seasoned and long- term employees engaged by providing the opportunity to refresh their skills, too.
In-person training can be pricey, especially when you tally training and travel costs. Instead, search out an online training service you can offer on a subscription basis to your employees. Courses are available in management, technology, sales training and more, and provide a flexible, convenient way for employees to engage in new learning at their own pace. Some online training companies even offer skill assessments that ensure employee skills stay relevant and up to date.
2. Offer flexible payday options.
Want to give employees a benefit option that’s so sticky they won’t want to leave? Try something wonderfully radical – break free from traditional payroll cycles and offer them daily, weekly or on-demand pay.
An astounding number of Americans live paycheck to paycheck and 12 million take out costly payday loans annually, according
to a Pew Trust report. Rigid payroll cycles often leave employees scrambling when an unexpected expense pops up.
Your employees count on their paychecks to support their families, fund their dreams and live their best lives. And yet, they usually have no control over when they get paid for the work they do. If you can offer them a modern payroll platform that allows them them to choose to get paid more frequently or accelerate their earned pay when they need it, they’ll have more flexibility and less stress when it comes to their finances. And that has a direct impact on productivity and employee happiness. Thirty-five percent of people say personal financial issues distract them while at work, according to a recent PwC survey.
Flexible payday options will also make you stand out as a prospective job candidates. Just be sure the solution you choose doesn’t charge employees fees to access their pay or only lets them draw on a small portion of their earnings. When word gets around you pay people when they need it, you’ll stand out among competitors who are tapping into the same applicant pool.
Want to see 3 more affordable ways to improve employee retention? Get our free guide.