You attract them, you screen them, you interview them, you hire and train them, and then they leave you. It is estimated that employee turn over costs U.S. companies over one billion dollars annually. This cost comes from the expenses associated with: Screening resumes, interviewing candidates, testing, travel and moving expenses, training, costs associated with exit interviews, the administrative work that comes along with terminations, separation and severance pay, and increases in unemployment compensation. During my employment as a Human Resources Consultant, I adamantly stress the importance of exceptional recruiting and retention practices. The following are some helpful tips for attracting and retaining that “all star employee”.
Provide Competitive Compensation
Every one has heard the saying that money isn’t everything. That may be true, but it sure does help! There are many resources available on the web that can assist you in gauging how well your compensation packages stack up against the competition. Generally speaking, employees that are under paid will feel under valued, thus, causing them to be more inclined to seek other employment. A nice blend of competitive compensation, accompanied with a good benefits plan will help send the message that: A) The company values you and B) We are willing to compete to keep you.
Lead By Example
Employees mirror behavior – positive and negative – displayed by those around them. It is very difficult for employees to follow policies and procedures which their superiors are not willing to comply with. Let’s look at an example. Company policy states that all employees must report to work by 8:00 a.m. If the boss strolls in some where between the hours of 8:30 and 9:00 every day, it leads employees to believe that it is ok for them to do the same. On the flip side, if the boss is the first one in the office each day it sends the message that employees are expected to report to work in accordance with company policy.
Give Respect Gain Respect
In order to gain the respect of your staff you must be willing to give them the same respect. As a Human Resources consultant, I often encounter employers and business owners that don’t seem to respect the people that work for them. The employees are undervalued and unappreciated. Couple that with being underpaid and you have created a recipe for disaster. Consequently, the employees tend to have little or no respect for their superiors. These are the employees that will leave you at the drop of a hat, they will bad mouth you, they will put out sub standard work, and in extreme cases they will steal from you. Treating people with respect is as simple as:
- Saying thank you
- Listening to their ideas
- Giving a friendly smile or a pat on the back
- Treating people as equals
- Avoiding playing favorites
By treating your employees with respect, I assure you they will respect you more and be far less likely to leave your organization.
In my experience as a Human Resources consultant, business owners that follow these guidelines have positively affected their bottom line by limiting turnover within their organizations. Don’t allow your organization to become part of the 30% of U.S. businesses that fail due to poor hiring and employee retention practices.
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