According to a Jobvite study, fully 51% of workers who currently have a job are actively looking for a new job, or are open to a new job if one were offered to them by another company.
This is troubling if you own a small business, or work as the hiring manager for one. Good employees are not cheap, and if you can’t afford to consistently raise salaries in this competitive talent market you may lose them to a competitor with a “better offer.”
But jobs aren’t just about the money, and there are plenty of things you can do to keep your employees with your company that don’t involve kneejerk (and unsustainable) salary raises. Here are five of them.
1. Flexible hours
The Families and Work Institute’s report on workplace flexibility found that “more employees indicate that they are not very likely to look for a new job in the next year when their level of overall flexibility is high rather than when it is low.”
Giving employees flexible hours and the power to determine their schedule is an easy, no-cost benefit you can implement almost immediately. In fact, it may even help your bottom line directly, as Best Buy found that, after switching to a plan that allowed employees to set their own schedules so long as the work got done on time, they saw a 35% improvement in productivity.
Other, similar benefits you could consider are:
- Work from home/telecommuting options
- Full-time remote work opportunities
- Getting rid of your formal vacation policy
2. Training/career growth opportunities
According to a Harris Interactive poll, 41% of workers with “poor” training options at their job plan to leave. This compares to just 12% of those who say their employer provides excellent training programs.
While an initial investment in a training program may seem hefty, it will quickly amortize over all of your employees. Additionally, there’s plenty of training software out there that can help you manage the process.
Companies with employee recognition programs have a 23% lower turnover rate than those without them, according to a Globoforce survey. Things like employee of the month, and recognition for specific achievements can be hugely beneficial to company culture and an employee’s willingness to stick around.
Recognition can also be paired with small rewards like gift cards or additional vacation days to make it more substantial. Team recognition, for instance taking everybody out for dinner after hitting a milestone, can also be effective here.
4. Ownership and stock options
How do you get someone to care about your company as if it was their own? Make part of it their own! In 2005, IndyMac Bank found that stock awards increased their total employee retention across all employee types, from operations staff to management.
While not technically “free,” giving stock options won’t deplete your cash on hand, and can greatly improve your turnover. IndyMac found that they cut turnover among operations staff by 50%. You just have to decide if the opportunity cost is worth retaining great employees.
5. No layoffs
Employees are much more likely to jump ship after their company has laid off colleagues, according to a University of Colorado Boulder study. Job insecurity is one of the big reasons people voluntarily switch employment.
While some layoffs may be unavoidable if you’re in dire financial straits, consider being creative in avoiding them. For instance, Mosaic Wealth Management of Atlanta offers employees 10% of any savings they can identify within the business as a way to trim the fat.
Do you know other creative methods of inspiring employee loyalty and reducing turnover without breaking the bank? Add your suggestions below!
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