February 14, 2023
We all want to hang on to our good employees. Replacing employees is time-consuming, expensive and often frustrating. Plus, you experience a loss in productivity as you bring new staff up to speed.
It's a mistake to think that compensation alone will ensure retention, particularly with younger staff.
Here are a few ways to show your employees a little love and keep them invested in your business:
1. Have an HR program. It sounds intuitive but many small businesses don’t engage in HR practices like performance management. We all want to feel that we are seen and appreciated. By setting up a system wherein you have regular check-ins with goal-setting and performance reviews you will increase employee engagement.
2. Recognize good work. Make it a practice to catch people doing a great job. A quick note or a passing comment to say that you noticed something someone did goes farther than you think. You can also ‘out’ an employee for great work to the whole team. There’s a reason a lot of companies feature an ‘Employee of the Month.’
3. Rewards. We believe rewards offer a creative opportunity to invest in your talent and strengthen your business. Here are some of our top tips:
* Find out what your employee wants since not every employee wants the same thing. Some people want more money, some want time off, some want professional development. Use your performance management check-ins to get a sense of what feels like a reward to them. A small business has the flexibility to individualize rewards.
* Consider individual or group gifts rather than (or in addition to) raises. We’ve always found that a gift (one that feels personal and meaningful to the employee) can be more impactful than a small raise. You can also reward the whole team with an experience (think something really fun) if the company hits a goal you’ve agreed on. One of our clients took their entire team on vacation to Mexico last month. Talk about showing how much you value your people!
* Set aside time for fun at work. Whether you bring in lunch once a month or offer a fun learning opportunity - just investing in a little regular happiness is actually great for your bottom line.
* Consider profit sharing. This is a way to show that you want your people to share in the success of the company.
Investing in your team’s sense of happiness and engagement is not only kind, it’s actually great for business.
