Party and Paper Magazine

The Realities of Employee Retention

You’ve just hired a new employee with past retail experience, stellar references and a “go-getter” attitude. You’re thrilled to have this great asset who’s sure to become a valuable, productive member of your staff. But it takes more than just a weekly paycheck to keep employees on board for the long haul.

Why is employee retention so important?
Every business owner, supervisor or manager should take a proactive approach to employee retention. According to Susan M. Heathfield, human resources expert for About.com, employee retention is critical to the long-term health and success of your business.*

Ultimately, it’s about investing in your current employees and developing mutually beneficial relationships that will foster their growth and the growth of your business. Satisfied employees create a more pleasant environment, not only for other co-workers but also for your customers. Happy employees can also save their business money, according to worldwide employment services company Adecco. Generally speaking, a person who wants to come to work every day is going to be more efficient and productive than the one who goes to work just because he has to.

Most people who are already employed probably aren’t job-seeking in today’s uncertain market, but that may all change once the economy rebounds. According to research by Harris Interactive Group on behalf of the Adecco Group, 54 percent of employed Americans are likely to look for new jobs once the economy turns around. That means it’s more important than ever to focus on your employee retention strategies right now.

How can I keep my employees happy?
Compensation is certainly an important aspect of every job, but the factors that play a part in total employee satisfaction are much more complex. A good salary alone won’t guarantee an employee’s longevity if he works in a negative environment or feels otherwise under-appreciated.

According to Heathfield, the quality of the supervision an employee receives is critical to employee retention. In fact, people leave managers or supervisors more often than they leave the job itself. So what can you do to make sure your employees stay loyal to you and your business? HR experts agree on several key strategies:

Open the lines of communication. Schedule regular meetings where employees can provide feedback. This shows them that their input matters, and more importantly, that it is encouraged. Take every suggestion into consideration.

You should also do your part and keep your staff informed of happenings within your business. People appreciate regular updates, especially in an uncertain economy. Involve employees in decisions that affect their jobs in particular or the overall direction of your business. It’s also important to periodically communicate goals and responsibilities, so that everyone’s on the same page.

Reward good work. While linking pay to performance is a common motivator, a bonus or raise may not always be in the budget. There are other effective ways to recognize employees for a job well done, and it can be as simple as a verbal “thank you.” Give employees sincere praise for a specific accomplishment, such as selling a certain number of bouquets in a week. Hearing this directly from you will encourage them to keep the good work.

However, be careful when handing out generic compliments across the board. If your best employee feels that others are being rewarded for doing less work, he’ll lose respect for you and stop trying as hard.

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Originally posted Monday, Sep. 21, 2009