Turnover in any business is unavoidable. You will have employees who leave on their own for many reasons. It may be retirement or relocation for example.
However in a large amount of small businesses turnover is the direct result of management complacency. Employees may become dissatisfied with their roles or they do not see a path of advancement.
When a good employee leaves your business is left exposed to significant costs, loss of productivity and a decrease in morale.
It is critical that you have a retention strategy if you want to keep your “A” players.
Some small businesses will look to save employees by throwing more money at them but salary increases are rarely sufficient. As a business owner or manager you must focus in on your employees’ individual needs and desires.
Promotion from within is a great starting point. It may be just as simple as delegating more responsibility to your best performers. If promotions or an increase in responsibilities is not an option then you can focus on roles and functions. Identify special projects that will challenge employees and hold their interest.
You may also want to provide training opportunities to cultivate employee commitment by giving them a sense of progress and growth. It will also provide your business with a superior staff.
The key is breaking the routine by knowing your employees and what drives them. Remember if you aren’t paying attention to your employees career needs then you will expose your business to increased costs for replacement, reduction in productivity and a decrease in staff morale.
Take control of your business by having a retention strategy in place.