Tips To Retain Employees At Your Small Business

Posted by Karen Erdelac on Mar 22, 2022

Tips To Retain Employees At Your Small BusinessHow can a small business retain good employees without paying astronomical wages in the labor market today? It's difficult with rising prices and inflation nipping at everyone's heels. Still, there are several things you can do apart from paying the same big salaries that larger companies can offer.

Many workers will trade the ability to work from home or have flex time if they need to work in the office in exchange for less pay. If Covid taught us anything, it is that workers have become accustomed and like the ability to work from home. It is also true that Millenials are about more work-life balance. The flexibility to work from home when they want to work rather than having set work hours can be a significant benefit in helping to retain talent that doesn't have to cost you a dime.

Another way to retain talented employees is to provide perks like on-site daycare, a well-stocked break room with free food and snacks, or with gas prices rising lately, a discounted mass transit pass or a monthly gas allowance could be very attractive perks that would help offset higher salary offers from competitors.

Providing opportunities for your employees to spend part of their day focusing on special projects they are passionate about can benefit your company as well as the employee. Many employees have great ideas that can improve your processes, or they might want to learn new skills that they can utilize within your company. The ability to be creative is often more important than the amount of an employee's paycheck.

We hear about companies that are customer-focused all the time. It is rarer to find employee-focused companies.
These companies understand that catering to employee needs and want and developing a positive company culture that values each individual breeds loyalty and respect for the business. That means your company needs to ensure everyone in the organization understands the company mission and believes in it. Your HR department needs to set policies that encourage respect for each person. Clear and direct communication is a crucial element of a positive work environment. Employees need to have trust in their management, particularly their direct manager. Be transparent about successes and failures and how each individual's work contributes to the company's success.

Appreciate your employees often and consistently. Whether it is kind words, movie tickets, a bonus, or an article in the company newsletter, raise and celebrate employees. And while we are talking about celebrating, take the opportunity to celebrate with your employees over business successes, holidays special events in the lives of your employees. The importance of expressing appreciation for your employees regularly cannot be underestimated. In one study, 79% of employees who left their job cited lack of appreciation as the primary driver for their departure.

Finally, consider your community and charitable giving. Find out what causes your employees are passionate about. If it's habitat for humanity, you can provide a paid day off for employees to work on a habitat project or another service project. Honoring employees by allowing them to volunteer with paid time off is really important to some employees and can be a great satisfier. Show that your company is committed to the community as well as to your employees.

There are other more traditional perks like bonuses, profit-sharing, or stock options that can help retain your employees.

Think creatively and don't discount any idea. Talk to your employees and listen to what they are saying. Often it is not the money that is the greatest motivator for keeping employees happy and loyal to the company. Many of those "other things" don't need to cost you a bundle. Engage your employees in identifying and putting into place those things that will make your business a more attractive employer.

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