Tag Archives: employee retention

Five Best Ways to Reward Employees

Recognizing your employees’ accomplishments and rewarding them for their efforts is incredibly important and plays a key role in maintaining a favorable retention rate. In fact, studies have shown that “The number one reason why most Americans leave their jobs is that they don’t feel appreciated.” But by strategically utilizing some effective ways to reward employees, you should be able to gain their loyalty, while simultaneously boosting workplace morale.

 

1) Offer Attractive Employee Benefits

Besides above average pay, a robust benefits package is one of the quickest ways to your employees’ hearts and is an excellent way to reward them for the time and energy they put into your company. By offering a variety of benefits such as healthcare, retirement, investment planning and so on, you should be able to keep more of your top talent around for longer. Entrepreneur reports, “Companies that don’t match or exceed the benefit levels of their competitors will have difficulty attracting and retaining top workers.”

 

2) Acknowledge Excellent Performance

Humans have an innate desire to be appreciated. Understanding and fulfilling this desire is paramount if you expect to cultivate long-lasting relationships and get your employees to view their jobs as being more than merely a way to earn a paycheck.

Fortunately, it’s easy to show your appreciation by simply acknowledging above average performance — and it’s also quite cost-effective. Here are some specific ideas:

  • Consistently praise top performers and those who have made improvements
  • Give a sincere word of thanks
  • Post thank you notes
  • Send out company-wide emails highlighting the accomplishments of employees

 

3) Hand Out Gift Certificates

Another simple and fairly affordable way to express your gratitude is to provide your top employees with gift cards. Amazon or Walmart are two of the best places for gift cards simply because of the massive variety of products to choose from. Some other ideas include a gift certificate for gas or coffee at Starbucks. Even a mere $25 can show your appreciation and can win you the favor of your staff.

 

4) Set Up a “Brag Board”

A brag board is simply a bulletin or white board centrally located in your workplace with the sole purpose of highlighting the accomplishments of your employees. Whenever someone exceeds expectations and goes the extra mile, you can acknowledge their superior level of performance. Not only does this directly reward employees for a job well done, it can have a noticeable impact on workplace morale.

 

5) Give a Token of Appreciation

Finally, if your budget allows, you can always give gifts. These will generally be reserved for the elite few who have really stood out and have gone far beyond the status quo. Here are some possibilities:

  • Tickets to a movie, concert or sporting event
  • A day off with pay
  • A free trip to a favorite restaurant
  • A weekend getaway

 

Companies who implement strategic recognition report a mean employee turnover rate that’s 23 percent lower than retention at companies without any recognition program. It’s well worth the effort to experiment with ways to reward employees. Even with a minimal budget, you’re likely to see tangible results that will contribute to the success of your company.

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Best Ways to Retain Your Top Employees

A key factor in the long-term success and sustainability of a business is employee retention. When you’re unable to retain your top employees and keep them around for the long haul, it can negatively impact several areas of operations and hurt your bottom line. This is an area that demands your attention and should be a top priority.

 

Employee Turnover Statistics

To get a clearer picture of the current state of average turnover, it’s helpful to look at some relevant statistics found on the HR Business and Legal Resources website:

  • Over 50 percent of people recruited into an organization will leave within two years.
  • One in four of new hires will leave within six months.
  • Nearly 70 percent of organizations report that staff turnover has a negative financial impact.

This information shows just how difficult it is for today’s companies to retain loyal employees for more than two years. With 25 percent of new employees leaving within six months of being hired, this can create some real problems for employers and proves just how much focus you should place on increasing your retention rate.

 

The Cost of High Turnover

You should also know that in addition to the stress and inconvenience involved with replacing employees, high turnover can be a profitability killer. In fact, research from ERE Media’s website finds:

  • For entry-level employees, it costs between 30-50 percent of their annual salary to replace them.
  • For mid-level employees, it costs upwards of 150 percent of their annual salary to replace them.
  • For high-level or highly specialized employees, you’re looking at 400 percent of their annual salary.

The reason for these costs is primarily due to the money you spend on recruiting, interviewing, hiring and training new employees as well as the overtime hours that existing employees may need to work in order to fill in the gaps until you make a new hire.

 

Retention Strategies

The good news is that there are several ways to retain your top employees and keep them from leaving at the first sign of another opportunity. Here are some strategies to consider:

  • Offer competitive pay
  • Offer comprehensive benefits such as healthcare, life insurance, investment planning, retirement plans, etc.
  • Give periodic raises to your top performers if possible
  • Strive to create a positive culture that encourages employees and celebrates accomplishments
  • Provide top employees with rewards such as perks and gift cards
  • Promote from within, and offer advancement opportunities
  • Maintain open communication with your employees, and always be willing to listen to whatever feedback they may have
  • Take the time to get to know your employees on a personal level
  • Host periodic events away from work so you can build team chemistry (e.g. company picnics and attending sporting events)
  • Conduct exit interviews to determine why employees want to leave, so you can avoid making the same mistakes in the future

 

If your employee retention rate isn’t what you want it to be, it’s time to take measures to increase it and minimize your turnover. By using one or more of these strategies, you should be able to retain your top employees and keep your business from falling into a vicious cycle of turnover.

 

Retain Younger Generations With Your Paid Time Off Policy

There are a large number of “millennials” between the ages of 18 and 35 flooding today’s workforce. According to Forbes, “by the end of 2014, they are expected to comprise 36 percent of the U.S. workforce, and by 2020, millennials will be nearly half of all workers.” In order to retain younger generations, it’s important to understand their needs and offer benefits that they will respond to.

One of the most effective is a paid time off policy where employees can accumulate sick days, personal days and vacation days that can be used as needed. Here are some specific ways that this can help with retaining millennials and reducing your turnover rate.

 

Employees Feel More Refreshed

Regardless of the job position, almost everyone is bound to feel a little burned out from time to time. Stress can mount, and it can adversely affect engagement and overall employee productivity. If younger workers feel like they hit their breaking point, they’re more likely to quit. But with a paid time off policy, employees can take some time off with your approval and get away from the workplace for a while.

This often leads to workers feeling more refreshed, so when they return to their job, they can function at a higher level and experience a deeper sense of overall satisfaction. In many cases, this will contribute to millennials sticking around for the long haul, which often translates to better team chemistry.

 

It Offers Flexibility

Having some leeway with scheduling is a big plus to most young workers. While their jobs are important, they often have a lot going on outside of the workplace. Those attending college can get especially bogged down with other matters. A paid time off policy is advantageous because they can take a few days off when needed and have more flexibility.

Not only will this reduce the stress of younger workers and increase retention, but you’re less likely to deal with them calling out. In turn, the daily responsibilities of your workplace should remain covered, and it’s reasonable to expect more productivity.

 

Employees Feel Valued

Perhaps the most important part of paid of time off is that it can improve your rapport with younger workers and help strengthen your relationships. It’s basically a way of treating millennials as adults and allowing them to make their own decisions on when to use their time off. They have a sense of empowerment in terms of addressing their personal needs and taking care of other areas of their life. This often translates into the feeling of being valued, which is a big motivator for sticking around.

Due to the growing number of millennials joining the workforce, it’s smart to offer benefits like a paid time off policy that fulfills their needs and gives them reason to stay. With any luck, you can maintain valuable working relationships with younger generations and assemble an excellent team of dedicated employees.

Photo by ITU Pictures