5 Tips to Keep Top Talent at Your Small Business

5 Tips to Keep Top Talent at Your Small Business
From Recruiter - February 14, 2017

Employee turnover is expensive. For example,SHRM estimatesthat direct replacement costs can reach as high as 50-60 percent of an employees annual salary. Thats not to mention the indirect and hidden costs, which must be considered as well if we want to deduce the total costassociated with turnover and replacement.

One thing is clear above all else:Retaining employees will always be more cost-effective than hiring new staff.

When it comes to top talent, it is of particular importance to develop the right retention strategy.Both big corporations and small businesses are fighting to hire the best contenders. Small companies may feel intimidated by the prospect of competing with large enterprises salaries and perks, but smaller organizations have flexibility and agility on their side. These can be precious advantages when it comes to retaining top talent.

The key to keepingstar employees inyour business is to build a happy workforce ofengaged employees who can be yourbrand advocates. This retention strategy is ideal for small companies because it does not require enormous investments. Instead,it requires the fostering of genuine bonds between employees.

The following steps should help you retain your most valuable employees, even when the companies with bigger budgets come knocking:

1. Listen to Your Employees

As Rob Bogosian, founder and principal of RVB Associates, explains, One of the best ways to retain talented employees is to foster a culture of voicewhere employees arent afraid to speak up. Many organizations claim to have such cultures, but how many are actually doing it right?

Startups are in a better position than larger corporations to listen to their employees. In small companies, people at variouslevels tend to intermingle and work closely together. This makes it easier to arrange meetings in which members of different teams and at different levels can present their ideas to top-level managers.

It is recommended to regularly hold such meetings and to encourage employees to come up with and share new ideas for business improvement. But dont stop there: After these meetings, top managers should follow up with employees to let them know how their opinions have been taken into account. In your monthly meetings, you can showcase the best ideas in front of the whole company and compliment them in public.

2. Find Personalized Motivators

There are noone-size-fits-all solutions in employee retention. What pleases one employee may not satisfy another. For instance, the perks that excite millennials early in their careers may not be the same ones that engage baby boomers reaching retirement.

It will be most cost-effective to let employeesdecide what types of benefits they prefer. While some young professionals may fancy a membership to a local gym or free food and drinks in the office, others may want more flexible working hours or the possibility of working from home.

Adapting to what your employees are demanding is critical if you want to compete with large corporations. You can analyze your employees ages and lifestyles to deduce what type of perks will keep them engaged, but the most important thing is to talk to them. Find out what they really want straight from the source.

3. Introduce Small, Continuous Responsibilities


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