4 ways to boost employee retention in a small business

June 10, 2015 in

Great employees are hard to come by, and when they do come into a small business, entrepreneurs have to do their best to build a long-lasting relationship.

Great employees are hard to come by, and when they work for a small business, entrepreneurs have to do their best to build a long-lasting relationship. This kind of small business HR is difficult, but new tactics can help owners improve worker retention.

Here are some ways business owners can keep their best employees involved and engaged:

1. Financial options
While it can be difficult for small business owners to provide higher salaries, there are other offers they can provide workers. Stock options, bonuses, and investment plans are all opportunities owners can pitch to valued employees, according to About Money. Stocks don’t vest for a certain period of time, which means that anyone who quits before the five-year period is over will forfeit the money. Bonuses allow supervisors to pick and choose who is deserving of them depending on their work ethic. This way, the workers who are invested in the company and are eager to stay with it long-term can be rewarded for their enthusiasm.

2. Feedback
When a manager asks for feedback from employees, workers feel valued. Their opinions become important and influential and they have the opportunity to be creative. According to The Workforce Institute, they’ll leave the organization before they give any feedback on their own accord, so business owners have to be diligent about asking for feedback all year. New employees are also great sources for feedback, as they can see processes with fresh eyes. However, veteran employees may develop a new appreciation when they’re asked what they think should be changed or improved.

3. Company culture
Expanding company activities and social involvement will create a rewarding culture for all employees. Having gatherings such as holiday parties, retreats and office potlucks can make workers feel valued, which means they are more likely to stay, according to About Money.

4. Opportunities to develop 
Even workers that have been with the company for years need training. About Money recommended offering management training, which can improve employee retention and the work environment. Providing training and development opportunities for all workers can improve business processes and the way employees approach customers and their job. The source added that it also helps them feel more loyal to the company, as improving themselves will banish the feeling that they’re stuck in a dead-end job.

About Money reminded business owners that a 100 percent retention rate isn’t always the best goal to have. It limits creativity for the business and the company keeps those who might not be a good fit for the enterprise. However, keeping those who are assets for the company is a great goal to have, which is what these tips can help achieve.

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