Employee retention is critical to the success of small businesses.
Thanks to the Great Resignation, employees are voluntarily quitting their jobs at a record-breaking pace. According to a recent survey from SCORE, hiring the right talent and employee retention are two of the top three employment challenges small business owners currently face. Additionally, nearly two-thirds of small business owners reported they had recent, unfilled job openings.
Not only is retaining employees a constant struggle for small businesses, but it is also costly. Built In reports that the average cost to replace an hourly employee is $1,500, and for technical and supervisor positions, it can cost more than an entire year’s salary.
While retaining employees can be a significant challenge, it can be improved. By implementing the following employee retention strategies, small businesses can help reduce their turnover.
- Create a positive work culture. Employees who enjoy coming to work and have a sense of belonging are less likely to look for new jobs.
- Offer competitive compensation and benefits. For many, money is a significant motivator. When employees are compensated fairly, they are motivated to stay.
- Recognize their contributions. Employees who feel appreciated are more productive and often more loyal to their employers.
- Allow for flexibility. Now, more than ever, employees are seeking flexibility in their schedules to provide more work-life balance.
- Provide access to training and resources. Employees who do not feel supported and helped are less likely to stay at their jobs.
- Encourage open communication. Employees want to know their opinion matters and feel like they have a seat at the table.
- Provide advancement opportunities. Employees want to be able to grow in their roles and be promoted from within the company.
- Promote productivity. Overall, productive employees are more fulfilled and have a clear sense of purpose. An employee’s work environment plays a significant role in their productivity. The good news is small businesses don’t have to conform to a traditional office space. Utilizing modern coworking spaces, such as Convergence JAX Coworking, can help provide a work environment conducive to collaboration.
The bottom line is overworked, underappreciated, and underpaid employees are less likely to stay at their jobs. However, when small business owners take the time and initiative to meet employees’ needs, they can improve their employee retention and set their business up for success.