Are you concerned about employee retention in 2024?

With one in five people expected to leave their job in 2024, employee retention is more crucial than ever. For SMEs, this statistic might seem particularly alarming when resources are limited.

In an ideal world, you could simply snap your fingers and deal with the problem instantly, by offering significant pay rises or bonuses. But for most, this is out of the question. Also, money is not always the answer.

The good news is there are all sorts of practical steps you can take – without breaking the bank – to make sure your employees feel valued, listened to and appreciated, so that they are less likely to want to leave.

Should they stay or should they go?

As you’ll know, the cost of hiring and training new recruits is considerable, consuming both time and resources which you would rather deploy more productively.

The recruitment process itself – from advertising vacancies, to conducting interviews and onboarding – requires substantial investment. Worse still, it offers no guarantee of a successful long-term appointment.

As such, retaining good staff not only saves money, but also helps ensure your business continues to run smoothly. Thinking clinically, it is a matter of balancing the cost of possibly losing your team members against the value they provide to your company, and what you can afford to do to keep them.

What really motivates them?

Simply checking in with your employees regularly through 121s and assessing how they feel about their current role may yield you key intelligence, and helps foster a broader positive culture.

It is an opportunity to find out what your team really want and value – you could ask how they see themselves progressing within the business and give them an idea of how they might be able to achieve that, with your support.

Offering training opportunities can also be a powerful incentive. Ask HR Dept about these.

Keeping your employees happy without throwing money at them

What about other ways to keep your workforce engaged, content and – as a result – more productive? Here are some ideas.

A well-curated employee benefits package can offer great value to you as an employer compared to paying salaries alone, and act as a desirable incentive to stay for your team. We looked at employee benefits in more detail in this recent blog, sharing ideas for launching a package or reviewing an existing one.

As you’ll know, flexible working is popular and easier to implement than once before for many businesses. Could you offer something here (if your operations permit) that would make a difference?

If the culture needs a bit of a shake-up, you could explore new ideas. How about rewarding a team member of the month who has gone above and beyond with a perk like allowing them to finish work early on a Friday, for example? Just make sure these rewards are fair and accessible to everyone.

Some employers like to provide breakfast staples in the office, or the occasional free lunch. These are relatively inexpensive ways to address the burden of the cost of living that many people feel is making their day-to-day lives more difficult.

Effective communications as a tool for employee retention

Clear and transparent downwards communication can be a powerful tool. When you have the buy-in of your whole team and they feel informed about the direction the business is taking as a whole, they’re much more likely to feel valued and that their own views are being considered.

Share company goals, expectations, values and changes as openly as possible. Keeping your workforce informed about the company’s vision and how their roles truly contribute to its success instils a sense of purpose and morale that is almost cost-free but, nevertheless, powerful.

Tailoring an achievable retention strategy for your business

If you’re looking for guidance on how to minimise staff churn in 2024, contact HR Dept. With years of experience in preventing people problems, they'll be able to help you put a plan in place.