Hopefully you have read our previous blog titled “Tips for Increasing Employee Retention – Part 1” discussing the costs related to employee turnover and was to prevent it. This blog will continue the discussion of ways an employer can retain his/her employees.
Many supervisors make the mistake of thinking that an improvement in the turnover rate means they are doing something right. It is important to understand that turnover rates are impacted by a variety of factors, some that are outside the employer’s control. For example, if your competitors are undergoing layoffs or hiring freezes, your retention rates will increase because your employees are not leaving to work for the competition. Additionally, the unemployment rate is an external factor that will impact your turnover rate as well.
Your administrators should be trained to recognize the connection between internal efforts and external factors on turnover. You don’t want them to take credit for a low turnover rate when they are doing nothing to help it. In fact, to truly determine whether your turnover rate has decreased as a result of your company’s supervisor’s efforts, they should be able to prove that their efforts are responsible for the improved turnover rate. Some employers use surveys to determine whether their intention to stay has increased.
All employers must understand that a certain amount of your employees will make the decision to leave regardless of what efforts you make, especially if they are top performers. External recruiters are continually contacting key employees regarding other employment opportunities.
It is also important for employers to hold administrators and managers responsible for retention results. If a business rewards high retention rates, efforts will significantly increase, and the results will be positive. In fact, if it is included in performance reviews and/or as a factor in an employee’s bonus, retention will be taken seriously.
If you have questions regarding employee retention, negotiating or drafting retention agreements, or any other business matter, please contact Mailly Law.