The cost of replacing a departing employee’s salary can be up to 150% when you take into account factors such as lost production, new employee training, and recruiting, according to Monster.com. Research by the Warwick Business School also has shown that employees who like where they work are 12% more productive then unhappy employees. Therefore, it’s critical for business owners and managers to retain their best employees and create a work-place where employees feel they are being treated fairly and where they enjoying working.
Below are three (3) things that great bosses consistently do which helps them to: a) keep top-talent, and, b) make sure that their organizations are places that employees want to work at, instead of just serving as a rest-stop for employees until they are able to find a new and better opportunity.
- Spend Significant Time to Ensure You are Hiring the Right Person – When you look to hire a new employee, it is absolutely essential that you select people who will best fit with your corporate culture, will be happy with the pay and benefits you can offer, and have the right attitude to excel at your company. Great bosses know that ensuring that the potential employee is the right “fit” is even more important than hiring someone who possess the right skill-set to do the job. Remember, you can train new skills and techniques, but hiring someone who’s wants, needs, and desires do not align with what your company has to offer, will lead to resentment, lower productivity, and ultimately, will lead to the employee leaving your organization, either by their choice or yours.
- Reward and Recognize Employee Accomplishments – Everyone likes to be thanked for a job well done. Find unique and creative ways to reward employees when they meet and/or exceed your expectations. This doesn’t always have to be a financial reward either. Recognizing employees in front of their peers can go a long way to increasing employee morale and engender good feelings about the company, and you.
- Communicate “The Big Picture” – Just like you, employees don’t like to be surprised. Employees like to know what’s going on with the company and they want to want to hear about any new company initiatives before these initiatives come into being, especially if the initiatives will impact their work. Employees also like to hear how you feel they are doing at their job. These types of conversations should not be relegated to a formal annual review. Communicate frequently with your employees about what you are seeing in the marketplace and in your company. Also, provide them with direct feedback on how their doing as often as possible. Wise employers will also use these conversations to listen to their employees and get their feedback. Communicating frequently with your employees is one of the best (and FREE) things you can do to ensure your employees remain committed and engaged in their jobs.
In the mad-dash daily scramble of making sure everything you need to do gets done, it’s easy to overlook employee on-boarding, morale and commitment. However, just like people in the best marriages slow-down and take the time to check in with the other person and resolve concerns before they become irreparable problems, so, too, do the best bosses take the time to build strong, lasting relationships with their employees. Taking just a few minutes a day to really listen and engage with your employees is one of the best things you can do and will lead to increased employee retention, productivity, and profits over the long-run.