Entrepreneurs in small, medium and micro setups have a perennial challenge – how to hire the best talent and once that is achieved, how to retain them!!!!
They spend countless hours thinking – how to groom employees for their roles, invest time and effort into getting them up to speed up their performance in the company. And for good reason too for our business’s livelihood depends on their performance.
But when an employee leaves, you’re back to square one: recruiting, training and grooming all over again. And the process isn’t easy or inexpensive. In fact, the Center for American Progress found that turnover costs companies an average of 21 % of an employee’s salary.
So how exactly do you get employees to stick around? Here are 6 tried-and-true tactics.
1. Intense Onboarding process
It is said that more than 70% new joinees are likely to stick on for 3 years or more if they experienced a favourable, intense, smooth induction process that conveys the vision of the organization, his /her role in this growth and how an intense handholding exercise is programmed for them. For most companies, hiring the position completes the onboarding exercise. However, it is not the case. Create a process that elicits engagement with them intensely and handles this smoothly.
2. Establish clear Development Paths
Your retention efforts should start the first day an employee is on the job. You should have open conversations about a new hire’s professional goals, and use these discussions (and regular check-ins) to come up with a structured development plan. It brings clarity to both the company and the employee of his future. He/she is shown the path and is more guided and directed in his efforts to put his best foot forward for the company.
3. Allow Company Culture to guide Hiring decisions
Preserving your company culture is much easier for young companies. With a handful of employees, you often don’t need to worry about managers passing the buck or people skipping out on company events.
But as you grow, it’s harder to maintain your ethos. To keep it intact, use it as a guide to hire and retain you’re a player. That’s where the articulation, communication and translation of the ‘Core Ideology’ of the organization comes to fore; i.e its vision statement, its mission statement, its Big Hairy Audacious Goal and the Vivid Description acts as a binding force to form a robust culture and each employee aligns to this ideology. Living this Culture and by writing the Core Value Translation book keeps this sanctity and culture of the organization alive.
4.Focus on Individual contributions, Review and Reward them
As startup scales, hold regular team meetings – DOMM’s (Daily Opportunity Multiplication Meetings), WOMM’s ((Weekly Opportunity Multiplication Meetings), to talk about company objectives, and tie these goals to each department — to junior staff members, specifically. You might need to spell out how they directly contribute to your company’s success to keep them engaged.
Document their KRA (Key Result Areas) and measure it by mapping KPI’s (Key Performance Index) to each KRA. Review this periodically (quarterly is ideal) and have the annual performance review discussed, a gap identified and improved areas mutually agreed upon. This helps in giving personal attention and also appreciating and rewarding them for their contributions.
5. Lead by example
You’d be surprised how much employees value good leadership, even more than compensation at times. Leaders who don’t live up to their promises or who fail to execute on a vision can lose loyalty — and valuable employees.
Encourage all leaders in your company to set realistic expectations and over-deliver on promises. Back up words with action, and empower staff members to take responsibility for their roles and contributions.
And above all, be honest. Your staff deserves to know what’s going on, whether it’s good or bad. So lead by example, do wholesome and constant communication to all employees. Have a mechanism and be consistent with it.
6. Watch your winners.
Most of your high-performing employees likely will receive unsolicited offers to leave your company, often for better pay and benefits. The question is: How do you not only identify, but also neutralize, potential flight risks early on?
Regularly check in with top performers to make sure they’re happy with their roles, development plans and compensation packages. And consider implementing some type of monitoring system (one that doesn’t invade a person’s privacy, of course). If an employee is unusually active on LinkedIn or his productivity suddenly changes, he might be a flight risk.
Hiring the right people for the right job is your biggest hurdle. If you have talented staff members who mesh with your culture, it’s likely that most of them will want to stay with your team. But you can’t just leave employees to their own devices. You must develop their skills, acknowledge their contributions and empower them with leadership opportunities to have the best chance of keeping them around.
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Happy implementation of the above 6 Retention strategies and All the best to build your talent pool!!!
This article is contributed by Ms.Jayshree Mehta – Deputy Manager – Human Resources, Mumbai along with the social team of smmart.