Entrepreneur and CultureIQ are searching for the top high-performing cultures to be featured on our annual list. Think your company has what it takes? Click here to get started.
When an employee quits, you don’t just lose the time, money and effort you invested in that person. According to an article published by Vocoli, you also threaten to overwork the remaining staff and lower the productivity of your team. Further, you then need to allocate more funds towards interviewing potential replacements and training them.
To bypass the headache and hidden costs associated with the departure of an employee, take preventative measures by tweaking your hiring strategy, benefits packages, and culture. Here are four tips on how to reduce employee turnover and improve your company culture.
1. Be selective.
Before even thinking about how to retain your staff members, start by imagining what kind of people you want working for you in the first place. Picking the right talent for the job is imperative to facilitating long-term growth for the employee and stability for the company. But what should we look for in the screening process?
Anthony Tjan, CEO of venture capital firm Cue Ball, suggests focusing on character instead of skills or pedigree. He writes, “While skills can be learned, it is much harder to cultivate attitude and character. There is no doubt that over time, institutional character and culture is the simple by-product of individual people.”
By hiring individuals with the best chance of being happy performing their duties on the job, you increase the chances of employee retention and cultivating a positive work environment.
2. Offer stellar learning opportunities and benefits.
Once you have the best talent on your team, make sure you can add value to their careers. Offer professional development via conferences, workshops, classes and team-building excursions. Providing relevant out-of-office opportunities for growth will allow your staff to bring fresh ideas and a sense of camaraderie back to home base.
Additionally, make sure your team’s fringe benefits are fair and up-to-date. Towards this end, utilize your human resources department to its fullest capacity by making sure your employees’ benefits packages get reviewed yearly and updated as needed. Also, consider creating personalized perks for the staff to increase morale and promote better company culture.
Related: Young Talent Demands These 6 Things for Their Loyalty
3. Establish an employee-oriented culture.
A culture deeply-rooted in employee feedback and two-way communication fosters a collaborative environment where everyone feels they are a part of the bigger picture and not cogs in a machine.
Willis Mushrush, a University of Missouri business development specialist, notes that companies with an employee-oriented culture tend to experience low turnover. Furthermore, they “solicit input and involvement from all employees and maintain a true open-door policy, avoiding closed-door meetings as much as possible. Employees are given the opportunity for advancement and [are] not micro-managed… Employees must believe they have a voice and are recognized for their contribution.”
In addition to promoting transparency and honesty, being employee-centric also means being flexible with your staff’s working schedules. Breaking out of the 9-5 grind and allowing employees to telecommute has been shown to lead to better health outcomes, increased happiness and higher productivity.
Related: Data Reveal the 7 Factors for Optimal Employee Retention
4. Stick to your values.
Perhaps the most important thing about developing good company culture is to stay true to your values and consistently lead by example.
On building a business and being a leader, Tony Hsieh, CEO of Zappos, said, “Chase the vision, not the money. Passion will get you through the tough times, rub off on employees and have a ripple effect on customers, suppliers and business partners.”
Identify your core values and what your company stands for first and foremost. Sticking to those principles through thick and thin sends the message that you are dedicated to the cause. Your team will then pick up that working for your company means sharing that same gritty attitude, persevering through hard times, and challenging each other to accomplish more.
Related: 6 Steps to Adopting Core Values That Stick