The ABCs of Employee Retention

One of the critical issues for small businesses is employee turnover and the costs that come with it. For instance, if a secretary quits, the task of finding and then training a new secretary can be crippling to a small business with tight margins. This cost or loss is intensified when the newly hired and trained secretary also leaves. Resources have been expended, time and patience are exhausted, and there is a considerable risk that it will happen over and over again.

Next, please!

Tips on Hiring a New Employee

In general, I would advise you to avoid the large online hiring outlets. While it is possible to find a quality employee, there will also be a massive influx of applicants, endless applications and follow-up emails, texts and calls (e.g. SPAM) that won’t seem to stop even after you’ve hired someone.

I know that generally nepotism is frowned upon, but I think hiring within your family and immediate connections is not necessarily a bad choice. Relationships are usually more easily managed (or foreseen at the outset), and retention can also be better. On the other hand, family members or close friends can also have “non-employee” type expectations… It really depends on your family and friend dynamic and on the apparent direction of your business.

If you don’t have an “easy” replacement, then get out there and do some marketing. Establish elements of the job that will be different and attractive to a high-quality employee…and then talk about it. Ask if the person you are talking to knows of anyone looking for a job. Ask at church functions or community events. Actively recruit from already employed people who just might be looking for a change.

We offered something better than daycare.

For example: I had a play space at my law office where my wife and I had cared for our children during the work week. When I sought a new legal assistant, one of my selling points was that we were a family friendly firm and allowed workers to bring their young children to the office in lieu of daycare. (As a result, we got a FANTASTIC single mom for our legal assistant, and although her kids are in school, she’s still with us.)

Tips on Training a New Employee

You will have to set aside the time or assign personnel to the task. It’s a very straightforward issue, because an untrained employee is just a net loss. Until the new hire is set up and fully able to handle their assigned tasks, they won’t feel comfortable and you won’t be able to give them work that they aren’t capable of doing. You won’t be happy and neither will they…and sooner or later, they’ll leave.

Begin with the basics: The phone system, the computer, email protocol, document archiving, customer interactions, etc. Encourage note taking and provide a notebook and the time to work their way through a task and outline the “how to” in their cheat sheets. Encourage sticky notes. Be patient and pleasant to work with … and don’t be afraid to assign tasks that fall outside the actual physical space of the workplace.

Mentors matter.

Consider assigning a mentor from your employees. Be very careful in choosing one who has a positive attitude and faith in the company’s future. Require updates on interactions and be open about questions that will inevitably arise.

Lastly, expectations are very, very important so have an employee handbook and use it. Have regular employee meetings and interviews. Be positive and always look for ways to increase involvement, promotions, wages and benefits in one way or another. Have office time off, vacations and events that all the employees will enjoy. Invite and involve your employees’ families as soon as possible in the new hire process.

Four Initiatives to Retain Employees Better

The first is a focus on meeting your employee’s “survive and thrive” needs. Employee survival is merely “keeping their job.” This level of retention is typified by anxiety, financial strain and uncertainty. There’s a distinct lack of hope for growth and a pessimism about the future. Not good. Thriving requires a bit more than just wages and healthcare benefits. It’s about meeting their survival needs and then boosting their outlook by offering career development, skill building and recognition. Experts suggest boosting the “thrive” dynamic results in more than six times better retention, positive promotion of the business, good work and overall satisfaction.

Having a positive outlook is priceless.

The second is a transformation from depression to hopefulness. Economic uncertainty, changing market conditions and rapidly advancing technologies can cause employees to feel like they are falling behind and will never catch up. Instead of letting this sense of hopelessness grow, focus on raising your employees’ skill level and expertise. (It is amazing what happens when you offer free or discounted educational opportunities to your employees… Just one will set the tone for many of the others.) Use your meetings to listen to and work on developing new processes and procedures as recommended by your employees and then train them to take advantage of their own suggestions. Task management and completion go up more than eight times while engagement, innovation, connection, feelings of belonging and validation skyrocket.

The third way to strengthen retention is to help any remote or “facing the public” employees to feel like they matter and are seen. This is Absolutely Critical! The prevailing consensus is that these employees feel exploited and expendable. They become somewhat isolated due to having constant pressure to answer calls and emails over and over again as the point of contact for issue after issue after issue. Turnover rates in customer service positions can climb up to 500% or more in a single year if an organization lets this slide. On the other hand, finding ways to integrate customer facing employees with “off-line” employees in a healthy way can result in remarkable increases in a sense of belonging, community, fulfillment and accomplishment.

Customer service can be a grind unless you recognize and appreciate how hard it can be!

For example: I found that interacting, bringing snacks or beverages personally to my customer-facing employees helped to break up the day. Additionally, everyone appreciates support and validation. When my legal secretary had a client who was raising his voice at the front desk, I immediately interrupted what I was doing to intervene. When the client wasn’t willing to back down, I had him ejected from the office and terminated our relationship with him. I then provided my secretary with some time off and offered counseling services if she was interested at no cost. To this day, she is still with my firm and believes, rightly so, that she is a valuable member of the team that has my complete support.

Finally, the fourth way to strengthen retention is simply to create a work environment that is fair and frankly flexible. Life happens. It’s important to recognize that issues will arise and complications will result. An organization gets loyalty when it (and its manager or owners) are considerate of their employees’ needs. Similarly, when an employee is starting or changing a new position, they need the same consideration that a new hire requires. Lastly, genuine support includes recognition of their accomplishments. Share the growth of the business and increases in revenue or penetration into new markets. Congratulate your employees and involve them in the success of the company. (e.g., If a particular department comes in under budget, consider taking the savings and spreading it around that department. The payoff will be that next year, despite the rise in costs, they will move heaven and earth to stay under budget.)

Selfishness usually ends badly...while sharing and caring bring light and energy to any endeavor.

In conclusion, it really comes down to your personal philosophy about who you (the manager or owner) really are…and who your employees are. If you treat them with the respect you afford yourself, take the time to integrate their efforts with yours and your organization, recognize and reward their achievements and look forward to a prosperous future … together, then you will not struggle with employee retention.

Curry Andrews, Attorney