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Once a company has found good, quality employees, it wants to keep them. Bringing in new employees almost always has an associated cost in both productivity and profits.
Employers use a variety of methods to lessen the risk of losing good employees. Some laws dictate certain treatment of employees, such as Title VII of the Civil Rights Act (discrimination) and the Fair Labor Standards Act (minimum wage and overtime). However, for the most part, the strategies that an employer uses to retain employees are left to the employer’s discretion.
Benefits
Many employers offer certain benefits to help increase employee retention. Some of the common benefits include the following:
- Paid vacations and holidays;
- Health, dental, vision, and prescription coverage;
- Life insurance;
- Short- and long-term disability insurance;
- Paid sick days; and
- Retirement plans.
Recognition
Some employers show their appreciation of a job well done with recognition, and some have formal recognition programs. Formal programs are not, however, necessary to get results. Some studies have indicated that one of the most important aspects of their professional lives is appreciation for the work they’re doing. This type of positive feedback may also improve morale for other employees as well, knowing that if they, too, perform well, they may be recognized.
This is the type of strategy that can be implemented even during more difficult financial times, when increases in pay and other traditional benefits may not be feasible. Most employees simply want to be treated well.
Communication
One of the reasons employees excel is that they understand the goals of the company, the department, and of their supervisor. They also understand their own goals, responsibilities, and expectations. This information needs to be communicated to employees so they can understand and excel.
Another form of communication that can be used is one that simply keeps employees involved in projects, decisions, and plans. This will not only provide for opportunities for employees to expand their knowledge and efforts, it may also provide input from as of yet untapped sources.
Training
When expectations are understood, some employees may need some training to meet these expectations. This type of employee development may have a positive double-edged effect in that it should improve the performance of the employees receiving the training, and it indicates employer commitment to supporting the efforts of the employees as they improve their performance.
In addition to training employees for performance improvement, sometimes managers and supervisors are not aware of methods for recognizing their employees and communicating to them. In this situation, the managers and supervisors may be trained to communicate effectively and to properly recognize employees for their work.
Employers have many options for increasing employee retention. Many of their choices may depend upon company policy or culture. They can choose a very informal approach, or institute a formal employee retention strategy.