A lot of companies hire the wrong people for their teams. They either hire the wrong personality type or they don’t have a clear job description.
Sometimes, you just have to fire someone who doesn’t fit your core values.
The challenge comes when you have a good person that is doing everything right, but they resign because they’re not being managed effectively. For an employee making $60,000 a year, it costs 6 to 9 months’ salary on average according to some studies. This amounts to $30,000 to $45,000 in recruiting and training expenses.
The likelihood of an employee sticking with your company increases by 3X over 2 years if they have formal one on one’s with a manager.
They have to ask them 2 simple questions.
- What are your pain points?
- How can I support you?
The rest is just listening…
If you’re adamant about employee retention here are some additional tips!
You can avoid turnover by encouraging employees to stay in their roles long term. Here is how:
- Pay them well.
- Give them ownership of projects they care about.
- Encourage them to take risks on things they want to try.
- Provide them with a steady stream of feedback so they know what they’re doing right and wrong, and how they can improve over time.
- Ask them what their pain points are and how you can support them in overcoming those issues.
Implementing all of these will ensure that your company isn’t losing money through recruiting and retraining. It also keeps your best talent in-house instead of at a competitor.