What Every Manager Needs to Know About Employee Retention

Replacing a member of your team is expensive. While the price tag varies from study to study, most have found that you’ll lose up to twice the employee’s annual salary on replacing them – a number that includes not only the costs of running job ads, but also the lost productivity while a replacement is found and the damaged motivation as existing employees scramble to “cover” until the new team member is up to speed.

Here’s what every manager needs to know about retention – and how to make it work:

Finding the Right People

Employees are more likely to stick with a company long term if they:

  • Feel they are capable of handling their daily work, and they are challenged by it as well,
  • Believe they have real opportunities for advancement and career growth, and
  • Get along well with their supervisors and co-workers.

To find the right people, tackle all three of these points. Make sure the job descriptions you use in job postings accurately depict both the daily challenges of the job and the skills and abilities required to address them. During the interview, ask the candidate about their career plans and talk about opportunities for promotion and growth – and don’t forget to screen candidates for managerial ability. Finally, work with a recruiter to find candidates who offer the right personality “fit” to mesh well with the culture your current staff have built.

Keeping the Right People

Once you have great staff, your goal is to encourage them to stay with the company. Many companies make the mistake of focusing significant effort on finding great new hires, then do little to help them acclimate to the new job or to feel as if they are a meaningful part of the company’s day-to-day operations.

To improve employee engagement:

  • Focus on onboarding new employees, not merely orienting them.
  • Build connections among all employees with mentoring programs, cross-department opportunities, and community outreach events.
  • Communicate regularly to help employees reach their career goals within the context of their current work and to gather feedback and ideas for the company’s growth.

At Marquee Staffing, our experienced recruiters help companies in SoCal find the talent they need to meet their business goals. Contact us today to learn more.