How to proactively improve your employee retention

Employee retention can be a real concern for companies. Issues with retention can lead to talent drain. It can also make a company less competitive on the market. Voluntary turnover can cause a company to lose focus and increase recruiting time and costs. Many companies are now learning it is more effective to retain a good employee than search for a replacement.

An article by ERE Media highlighted ways to proactively improve employee retention:

1. Compensation bump. Given that the economy has recovered and businesses are picking back up, it is a good time to review employee compensation. It is also the time to reward employees for their productivity over the past few years when the recession led to stagnant wages.
2. Additional benefits. Go beyond pay and health insurance. There are additional benefits that can be added at little or no cost to the company. Some of these benefits include: transit subsidy, a flexible spending account or health reimbursement account, museum passes, on-site services, discount buying programs, preferred parking, company outings, company lunches, work at home policy, company assigned devices, employee recognition, etc.
3. Referral program. Employees like to surround themselves with like-minded peers. An employee referral program can bring in high quality candidates and also improve employee retention.
4. Training and learning programs. Employees often leave their current employer because they feel as if they are going nowhere. When a company invests in training, it helps to improve employee skill sets. It gives employees a better outlook and it encourages them to grow with the company. When the company invests in an employee, they are more likely to stay.
5. Review (and fix) internal procedures. Look at your workplace from your employees’ point of view. Consider an anonymous employee survey to uncover potentially troublesome internal procedures.