Provisional Blog

Did you know that the vast majority of workers will change jobs at least 10 times during their careers? While there are certain situations involving turnover that you can do nothing about (i.e. an employee’s spouse is relocated), you can improve retention by creating a positive work atmosphere in which employees feel motivated and appreciated. In fact, while money and benefits are important, studies show that in the long run, a positive work environment is more important in retaining staff. So here are some tips for creating that “feel good factor” at your company:

Give employees a sense of control over their jobs.

Some people do well in a more formal, corporate setting, while others thrive in a more laid back environment. However, everyone values a positive, ethical work setting where they aren’t micro-managed. While you’ll want to make clear your expectations and how performance will be evaluated, give your employees enough latitude to set an appropriate pace and exercise professional judgment along the way.

Be open to new ideas.

Communication is key to running a successful company. It’s important that you are open and honest with your employees, and offer plenty of feedback. With that said, communication is also a two-way street. So involve your employees in a dialogue about the future of the company. Welcome their ideas and input about what’s working – and what’s not working so well.

Accommodate employees.

If possible, consider allowing flex-time or letting employees work from home one day a week. Don’t be a miser when it comes to vacation time, personal days, or holidays. Let employees structure a benefits plan that meets their family’s unique needs. For instance, a 55-year-old employee would be much more interested in purchasing long-term care insurance than a 30-year-old.

Provide opportunities for growth.

Create a mentoring program, bring in a speaker on topics of interest the first Tuesday of every month, or offer partial or full tuition reimbursement for advanced degrees.

Create a sense of fun.

Obviously you don’t want employees to slack off, or goof around too much. But it’s also important to show your appreciation by letting your employees leave early on a Friday, bringing in lunch once a month, or celebrating work anniversaries.

Developing a positive work environment may take some time, but it’s also a key to retaining high quality employees. And if you need help recruiting high quality employees, please contact Provisional, one of Coeur d’Alene’s premier staffing firms. We can take the hassle out of recruiting and hiring.

You know that employee turnover can be costly for high level positions. But did you also know the cost to replace an entry level employee can also be quite high? According to the Society for Human Resource Management (SHRM), replacing an entry level employee, on average, costs anywhere from 30-50% of that individual’s salary.

Here’s an example:

An entry level employee at your company is making $24,000/year. They decide to leave. It could cost your company anywhere from $7,200 all the way up to $12,000 to replace that employee. These costs include sourcing, screening, hiring, and training the new employee, as well as any losses in productivity.

So what can you do to retain and manage entry level employees? Here are some tips:

Pay a higher wage.

It may be tempting to pay entry level employees less, but doing so may cost you more in the long run in the form of turnover. So if you can, stretch your budget some to pay the highest salary possible to entry level employees.

Interact with your employees.

When you get to know your employees, you’ll have a better understanding of what makes them tick. As a result, you’ll be able to better motivate and manage them.

Give rewards for above-and-beyond work.

Entry level employees – and all employees for that matter – should be rewarded when they go above-and-beyond the usual call of duty. Give them an extra day off, a gift certificate, or even a small cash bonus. Not only will your employee feel valued, but they will also be more motivated to continue doing a good job.

Include financial assistance for education in the benefits package.

You can encourage employee growth by offering to pay for all or part of an advanced degree. If you’re worried that the employee will leave as soon as they earn their degree, then tie the financial assistance to their longevity with your company. For instance, they are only eligible for the assistance if they stay with your company for at least five years.

Let them know you value their input.

Just because an entry level employee is a rookie, doesn’t mean they won’t have good ideas. In fact, they may be able to offer you a fresh perspective since they are so new. So encourage them to come to you with ideas and suggestions. Even if you don’t take their input, explain to them why and let them know you appreciate their feedback.

And if you need help recruiting entry level – or any level – employees, please contact Provisional. As a leading Northwest staffing services firm, we know where to look to find high quality candidates in a variety of fields.

Did you know that when considering expenses like sourcing, screening, hiring, and training, the Society for Human Resource Management (SHRM) estimates that it costs $3,500 to replace one $8 per hour employee?

And this is the low end of the spectrum!

Other sources actually calculate the cost of turnover as much higher – 30-50% of the annual salary of entry-level employees, 150% of middle level employees, and up to 400% for high level employees.

What’s worse is that while most organizations take into account the cost of employee salary and benefits, workers’ compensation insurance, and office supplies – they have no idea what employee turnover costs their company each year.

So what steps can you take to reduce turnover at your company? Here are some tips:

• Hiring the right people from the start is the very best way to reduce turnover.
So when you’re in the hiring process, interview candidates carefully, not just to ensure they have the right skills but also to make sure they will fit well within your company’s culture.

• Offer competitive compensation and benefits packages.
Work with a Coeur d’Alene staffing company or your HR department to gather current data on comparable companies and the salary and benefits they offer. Also, review your salary and benefits yearly to ensure you are remaining competitive.

• Pay attention to your staff’s personal needs.
Offer more flexibility if you can. For example, you may want to offer on-site daycare or the ability to telecommute.

• Don’t forget to say thank you.
In fact, recognition and praise are probably the most cost-effective ways to maintain a happy, productive work force.

Don’t let high employee turnover hurt your company’s bottom line. As a leading Coeur d’Alene staffing company, we can create an employee retention plan that will help you to reduce turnover and improve retention. Contact us today to learn more.