A key factor to having a successful business is to have employees that are going to be dedicated to their job, and highly motivated to do it. These kinds of workers don’t just fall from the sky, but you need to make them that way.
It’s a well-known fact that people have all sorts of experiences working for bad bosses and owners. Proving that you’re different might be a tough job, but if you manage to do it, it will surely pay off. Showing your employees that you care is a sure path to high retention rates, and keeping the skilled employees in your offices.
It’s also very important to reward your staff as best you can, the most effective way of doing that is by using a quality employee benefit platform as that will take care of most of that for you.
In this article, we’re going to talk more about employee retention, and we’re going to talk about some of the most valuable metrics that you need to use to find out if you’re doing a great job. Keep up if you want to know more.
1. What is employee retention?
The success in keeping employees for a longer period in the company is called employee retention. It’s crucial to have high retention rates because every new person that comes to work for you will need special training, onboarding, and a timeframe to achieve their full potential. See more about it here.
If you change employees on a particular position on a monthly basis, you’ll never be able to gain the most of it. If you need a content writer and these guys constantly quit the position, it means that you’re doing something wrong. The new ones will constantly need to adjust to the company’s writing style and will need time to learn the most important rules of the firm.
2. What is a good retention rate?
A good retention rate is over 90%. The US average is exactly this number, so you should expect to have nine out of ten people staying in your company for a longer period. If you’re below this number, then you need to ask yourself what you are doing wrong.
3. How to measure
To measure your retention you need to divide the number of people that stayed in your company with the number of employees you have and multiply this number by 100. That’s the percentage of your retention rate. If it is above 90%, you’re doing great, but if it’s below, then you’re surely missing something.
4. What is a turnover rate?
The turnover rate is the rate of people leaving your company. It is calculated the same as the previous one, with one little difference. To get the number, now you need to divide the number of employees that quit the company by the number of those who stayed for a longer time and then multiply it by 100.
That’s the turnover rate of the company, and the smaller this number is, the better for you. It means that you treat your employees with respect and they are happy working for you. See what turnover is here: https://www.investopedia.com/terms/a/attrition.asp.
5. What to do if there’s low retention
Having lots of people quitting means that something’s not working right inside the firm. You need to make some changes. These days, employees don’t quit because they are underpaid, but they quit because something bothers them. They are not happy or they are being treated badly.
Either way, you need to do something about it. One of the things that you surely need to do is to raise employee engagement in the company. That can be done through various methods. Have team building sessions, introduce games at work, or make longer breaks for everyone to relax more.
Then you need to achieve a perfect life-work balance for everyone working for you. Make sure that your offices are located in an area in which workers don’t have to travel for hours. A solution for this is to let most of them work remotely or introduce a mixed working week.
Some countries around the world started a four-day working week which makes people be more dedicated, professional, and motivated to do their job during these four days, leaving three days for rest, which is much better for everyone. The company is moving forward, and the employees are as happy as they can be.
Conclusion
Building a successful business takes a lot of effort and a lot of time. It’s crucial to understand that as a manager, you’re not the one who drives the company forward, but the lower-level employees are those whose efforts are the most valuable. Check these employee retention metrics from above and see what can be improved.
Their work is vital and their productivity is going to make or break your dreams. That’s why you need to do everything you can to find and keep valuable people to be part of your team. Have the stats in front of you and see what you can do to improve the workplace.