Attracting and retaining good employees is the number one issue facing most businesses today. The U.S. Department of Labor estimates that it costs a company one-third of a new hire’s annual salary to replace an employee.

While competitive salaries are important in a tight labor market, employees list other items as equally important: career development, flexible hours, and employee relations, to name a few. Consider the following tips for reducing turnover:

• Make your company one that employees are proud to work for. This might include giving your employees paid time off for community involvement, such as volunteering in a school, senior center, or community organization of their choice. The publicity will enhance your company’s reputation and add to your employees’ sense of accomplishment.
• Make your company family-friendly. In-house childcare or flexible work hours often reduce absenteeism and increase an employee’s productivity.
• Adopt a flexible benefits plan. Allow employees to choose what is most important to them from a menu of benefits.
• Establish a mentoring program for new employees. Team a seasoned employee with a new hire to help in learning needed skills and understanding the company culture.
• Offer technical, financial, wellness, and self-improvement seminars. If you don’t have the resources or space to accommodate this, contact your local community college or hospital.
• Create partnerships between employees and your company by setting common goals. Share profits through incentive bonuses.

Finally, listen to your employees. Ask your employees what is collectively and individually important to them. Establish open communication and prove that management is interested in employee input by implementing and rewarding worthy suggestions.

Establishing a reputation as a company that cares for its people will help you attract and retain good employees.

© Copyright 2000 Raymond S. Kulzick. All rights reserved. 001007.