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How to Improve Employee Retention

cube_farmWith the high costs of recruiting skilled tech employees and the competition for this talent, you need to pay attention to employee retention. Without a strong strategy in place, hiring costs can quickly increase and productivity may drop. While some people will leave for other opportunities or personal reasons that aren’t related to the job itself, constant turnover may be indicative of deeper problems within your organization’s culture.

Leaders need to put effort into employee retention or risk business sustainability, increased costs and low morale, according to TLNT. This is especially the case if key hires are exiting the company at a heightened rate. Here are some tips for improving the aspects of employee retention that are within your control:

1. Offer Competitive Compensation
Skilled tech hires have a lot of choices in where they accept job offers. Geographical location matters a great deal, especially in regions with a higher cost of living, Entrepreneur magazine said. However, employees also need to be compensated based on their skill levels, and someone who has been with the company for six months and has demonstrated great performance should be making more than a new hire. This issue can breed resentment.

2. Training and Employee Development
While money is important, it isn’t everything. Employees want the opportunity to enhance their professional skills, especially in the tech sector where things are constantly changing. While computerized training or outside seminars may be effective, leaders need to weigh the costs of these offerings.

“Mentorship programs create better bonds between managers and their employees.”

Mentorship programs deepen new hires’ connections to your organization and create better bonds between managers and their employees. This tactic can also establish best practices and bring new hires up to speed more quickly. This form of coaching can improve career advancement for high-performing individuals, and it can correct gaps for other workers.

3. Put the Right People in Management Roles
On the subject of managers, this is a major factor in whether employees stick around or seek a new job. Citing data from Cornell University’s Center for Advanced Human Resources Studies, TLNT reported that 80 percent of employee turnover stems from workers’ relationships with their managers and the working environment supervisors create. This makes it crucial to select the right managers who will establish a positive culture in their departments. Business leaders need to ensure direct supervisors communicate openly with their teams and enable collaboration. It may be beneficial to offer more training for team leads.

4. Recognize Employees for a Job Well Done
Going back to the idea that money isn’t everything at work, employees want their accomplishments to be celebrated. The reward doesn’t always need to be monetary, but managers should acknowledge the efforts of those who go above and beyond as much as possible.

5. Offer the Right BenefitsHowever, this tactic can be difficult for some leaders because all employees are different and won’t be motivated by the same kinds of praise. Especially as workforce demographics continue to shift, a one-size-fits-all employee recognition policy will not be effective. One way you can determine how individuals would like to be acknowledged is by asking for feedback. Not only does this provide deeper insights into your workforce, but it also increases employee engagement. Team members feel like they have more say in operations.

Compensation needs to go beyond salary. Competitive companies provide commuter benefits, discounted gym memberships, flexible hours and even tuition reimbursement. As the fight for talent becomes more difficult, you can’t overlook benefits, Entrepreneur pointed out. Many businesses in the tech sector offer quality benefits, which makes competition for the same hires even more competitive.

6. Hire for Skills and Cultural Fit
Ultimately, if someone isn’t a good fit for your organizational cultural, he or she won’t last long at your company. However, hiring just for culture means you may have some significant skills gaps in your workforce. You need to determine the most important aspects of workplace culture and the most relevant skills to improve hiring. Selecting the right people from the beginning can ensure a better chance at long-term employee retention.

Employee retention and engagement are complex issues, but they directly impact a company’s bottom line.

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