Challenges of Employee Retention

Finding exceptional employees is one thing. Keeping them is another. Today, employees are mobile, in part due to the existence of appealing job opportunities elsewhere. The availability of personal development opportunities also contributes to job mobility. However, identifying, hiring and training employees is an expensive process. As a result, it's important that small businesses provide employees reasons to decline opportunities to shift from one job to another.

Sometimes, implementing small changes can ensure employees remain in place rather than seek more-competitive compensation packages, less work dissatisfaction or greater opportunities for recognition and self-development. Understanding how to deal with challenges in employee retention will help you reduce staff turnover.

Balanced Compensation Packages

Employees seek equitable pay for their work. As a result, the first step a small business might take to retain employees is to enhance its compensation packages, which typically include salaries, insurance, a retirement program and employee leave.

For example, an employer might pay a larger portion of employees' health insurance premiums or introduce a new bonus program based on performance. A business might also ensure its compensation and benefits packages are in line with those of competing companies in its industry.

Minimizing Worker Dissatisfaction

Workers of all ages and across all income brackets seek job satisfaction. As a means to retain employees, a company might revise its employees' work environment, the company policies or particular physical aspects of jobs to limit the physical or emotional dissatisfaction employees experience at work.

For example, a business might revise its shift schedules or install new equipment in a factory to make a job less physically stressful. A company might also introduce environmental safeguards and associated audit programs to best protect the health of its employees.

Recognition and Rewards

People who feel unappreciated sometimes seek acknowledgement elsewhere, explains Management Study Guide. As a result, an employee recognition program can have a significant impact on the ability of a small business to retain its top performers. Most organizations lack the resources to target all employees with recognition programs.

As a result, a risk analysis is used to identify top employees who pose a retention risk. A company then uses this analysis to develop a promotion or fast-track program with these employees in mind. Also effective are employee-of-the-month and award programs.

Self-Development Opportunities

Employees frequently seek opportunities to develop their skills and talents for personal satisfaction and to increase their professional opportunities. As a result, the implementation of self-development programs is an effective tool to increase employee retention levels.

Employees are attracted to funded education programs, in-house and offsite training programs, seminars and conferences. Also of interest are sabbatical, mentoring and coaching programs. Think about adding mentor programs to increase employee development.