Thank you for listening to The Champion Forum Podcast with Jeff Hancher! How well is your company retaining your best employees? Employee retention falls on the company and the leader, so what can you do to ensure your best employees are not looking for greener pastures? Last week, we discussed two of the top five reasons employees stay at their jobs: work/life balance and a sense of purpose. Today, we will dive into the final three reasons employees stay with their companies: growth opportunities, feeling valued and respected, and enjoying their colleagues.
Why does employee retention matter?
A company spends $98 per day on a vacant position. It takes an average of 42 days to fill a job vacancy, not to mention the time spent recruiting, interviewing, and onboarding the new employee. It can take 1-2 years for a new employee to reach the same productivity level as a high-performing employee who leaves. If you put significant effort into these five areas, you will undoubtedly see a decrease in turnover and create a culture your team will want to be a part of.
Reason #3: Career Growth, Learning, and Development
Statistically speaking, people who move into new jobs internally are 3.5x more likely to be engaged than those who stay in their current roles. Creating a culture that prepares people to accelerate their careers is a fantastic way to retain people. When you invest in people's development, you are telling them they are valuable. This process does not have to be expensive! Coaching and workshops are great, but if that isn’t in your budget, try some of these free or low-cost suggestions.
Hold in-house skills training and product knowledge training.
Have vendors come in and provide training on equipment or products.
Create a library of books to help others grow and review the book with them.
Use this podcast and the show notes to guide weekly discussions with your team.
Send specific employees articles and YouTube videos in the areas they need to grow.
Have some of your best employees deliver a presentation on their area of expertise.
Help your people find a mentor.
Q: What are you currently doing to help your employees grow? Does your company have any programs to help employees grow? Does your company have any barriers that prevent employees from pursuing professional growth? How can you help your employees get access to both personal growth tools and the time to pursue them?
Reason #4: Feeling valued and respected by their leader.
The dynamic between employee and leader continues to be among the top reasons people stay. Exploring new job opportunities is far less tempting when your leader treats you with dignity and respect. Most companies’ most significant opportunity for employee retention is to develop their leaders.
Leaders must dedicate time and energy to supporting their team’s practical and personal needs. Practical needs arise during a business day, such as conflict resolution, decision-making, and strategy development. A personal need, however, is something that affects the employee both at work and at home. Everyone desires to be heard, understood, respected, trusted, and involved! The key to consistently meeting your team’s needs in both these areas is engaging in regular conversation, such as the weekly one-on-one meeting.
Q: What makes you feel valued at work? Describe a time when a leader went above and beyond to show you they cared. How did it affect your attitude toward your job? Were there any long-term benefits from their effort?
Reason #5: They enjoy working with their colleagues.
Strong emotional ties to the organization significantly decrease the likelihood that employees will leave. Helping your employees work together toward a common goal will promote collaboration, communication, and a shared purpose. Positive relationships with colleagues and a supportive team environment contribute to employee satisfaction and retention. Leaders who emphasize collaboration and teamwork create a sense of belonging that encourages employees to stay longer and engage more with their work. To create more connections in your team, try one of these activities:
Do something fun as a team!
Encourage employees to cross-train in related departments.
Volunteer together in community outreach.
Encourage teamwork by assigning group projects and tasks.
Engage in team-building activities.
Q: What is your favorite fun activity to do at work? What makes it fun? What would help your team become more connected? How can you help fun activities foster more connection?
Application Activities:
Do you know what areas your employees want to grow in? The first step to developing people is knowing what skills they want to develop! Make a list of your team members, their goals, and any relevant skills to help them reach them. The next time you meet, work with your employee to come up with a plan to develop one of those skills. Come prepared with a budget so you know what you can offer them and establish a time frame for you to follow up.
What makes you feel valued and respected? How often do you do those things for your employees? The most straightforward way to make people feel valued is to give them your time! When you have an un-rushed, open conversation with your employees, you will show them that you care about their lives and what they say. If you don’t already, schedule weekly one-on-one meetings with your team. If you already have these meetings scheduled, I challenge you to clear an extra 10-15 minutes after each meeting. Then, you will not feel rushed into the next meeting or task, and you can give your employees your full attention. If you do not need the extra time, use it to act on any action items you and your employee discussed. Making quick progress on what is important to them will also show that it is important to you.
Work with your team to develop a fun activity you can do weekly and one more extensive activity you can do at least quarterly. Your team will know what they actually want to do, so get their feedback! Birthday celebrations, team lunches, a walk to the local coffee shop, or even a team-building ropes course can be great opportunities to foster connection and help people work better together.
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