The Perks of Employee Retention and How to Do It

“I quit.” Those two little words pack a lot of punch. When an employee leaves their job, it may seem like an abrupt decision that comes out of nowhere, but there are many reasons why employees quit. 

As a small business owner, prioritizing employee retention is essential to creating a stable workforce. In this article, we’ll explore the importance of keeping your employees happy and provide employee retention strategies to enhance and sustain employee satisfaction. 

Why Do Employees Leave Their Jobs?

You’ve worked hard to create a positive environment for your employees. So why would they want to leave? Employee retention may become more manageable when you understand what makes your employees tick — and what ticks them off. 

Here are common reasons why an employee may call it quits¹:

Lack of growth opportunities. It’s called a dead-end job for a reason. If there’s no clear path for skill development or career advancement, many employees may feel stagnated, which may lead to disengagement and employee turnover.  

Compensation and benefits. We all know money talks. Attracting top talent is more challenging without competitive pay and a solid benefits package. And it can be even more difficult to retain employees if you don’t evaluate their pay regularly and offer other incentives. 

Poor management. There’s some truth to the phrase, “Employees don’t leave companies — they leave bosses.” A manager’s lack of support, failure to recognize efforts, and poor communication may be the very thing that drives an employee away.

Work-life balance. For some employees, work-life balance is one of the most important factors when choosing a job. Businesses that demand long hours with little flexibility may notice more burnout and employee turnover.

A negative environment. Workplace culture can make or break an employee’s experience. A toxic work environment and an unsupportive leader may drive away the best employees. 

Why is Keeping Employees Important?

If you’ve ever had an employee quit, you may already know why employee retention is so critical. Onboarding and training a new employee takes time and money, which can be a huge disruption to your business. 

Small business owners who prioritize employee retention strategies may be better able to avoid the hassles of employee turnover. 

Here are some other key benefits: 

Attracting talent: A low turnover rate indicates that your business is a healthy environment where you can attract top talent. 

Cost savings: A stable workforce is less costly to manage than one that’s constantly recruiting new hires. Onboarding and training new employees is expensive, so keeping your employees content is financially beneficial.

Productivity: Knowledgeable, skilled, and experienced employees are an asset to your business. It takes time for a new employee to learn the ropes and match the output of former employees, which may affect productivity.

Employee morale: A revolving door of new hires may take a toll on your employees, prompting them to consider whether they should also leave. A stable environment is more likely to cultivate a committed and loyal team.

Customer satisfaction: Your current employees understand your customers and may have solid relationships with them. Keeping your employees maintains a consistent positive experience for your customers. 

6 Ways to Help Keep Your Employees

Ready to strengthen and maintain your current workforce with an employee retention program? Here are 6 employee retention strategies to help keep your employees engaged.

1. Prioritize onboarding. 

A first impression can make or break your relationship with a new employee, so invest time in developing a thoughtful onboarding process that gets them acclimated to your business. Our helpful guide walks you through onboarding best practices to ensure a warm welcome for your new employee.  

2. Offer health benefits.

Employee benefits such as health insurance and paid time off are very important to your employees’ well-being. As a small business owner, you may wonder if you must provide health insurance benefits. You’ll find the answer to that question and more in this article that’s tailored to small business owners.

3. Empower your employees.

Giving your employees the freedom to make decisions builds their confidence and demonstrates your trust in them. When you foster an empowered team, it sends a message that you’re invested in your employees, which can strengthen employee retention. 

4. Provide growth opportunities.

In addition to empowering your employees, provide them with opportunities for career growth and development. Whether they’re working as a line cook at your restaurant or a CPA at your accounting firm, new opportunities send a message to your employees that they have a future with your small business. 

5. Have regular check-ins.

Meet with your employees regularly to discuss challenges they may be experiencing. By being proactive, you can address potential problems before they fester and become a reason for an employee to leave. 

6. Recognize employee efforts.

It’s hard to quit a job after you’ve received an unexpected bonus or were just named “Employee of the Month.” Employee recognition can be as simple as a “thank you” or a gift card to their favorite coffee shop. What matters most is that your employees feel appreciated. 

Insurance to Help Take Care of Your Employees 

If you’re a small business owner with employees, you’re likely required to have workers’ compensation insurance. Workers’ compensation helps pay for employees who get sick or injured on the job and is designed to protect your business. 

Workers’ compensation can be confusing because the laws and requirements vary by state. But don’t let it prevent you from getting the critical coverage you need. Simply Business can help you find the best workers’ comp coverage from leading national insurers — quickly and easily 24/7 with our online quote tool. 

Do you have a question about business insurance right now? You can contact one of our licensed agents via phone, Monday-Friday, 8 a.m.-8 p.m., ET. 

Keeping Employees Top of Mind

Focusing on employee retention strategies isn’t just about hanging on to your workforce. When you invest in your employees, you build a team for the long haul, which helps your business thrive.

Your employees are one of your greatest assets. We can help you support them with valuable tools, tips, and guides, which you can find when you visit our Resource Center. It’s also a great place to learn more about workers’ comp, including this special section. 

Before you go, check out these three articles we handpicked for small business owners like you: 

• Simply Business: Questions to Ask a Potential Employee
• How to Hire Seasonal Employees | Simply Business
• Got a New Employee? Here’s What Small Business Owners Need to Know

Reference:

1. Learn more at chamber.com/co/run/human-resources/top-reasons-why-employees-quit