How to increase employee retention as a small business

Employee satisfaction is a measure of how content an employee is with their job, work environment, and the overall business culture. Happy employees are motivated and have less burnout than staff who are unsatisfied in their role

As Australians look for their next big work opportunity, businesses are left with decimated teams and costly retraining payments.

Research has found that the average cost to fill a new role is $4000 and takes around 24 days.  With employees increasingly dissatisfied in their current roles and open to new working opportunities, organisations must now find a way to elevate the employment experience

Let’s look at why people feel dissatisfied at work

• Being underpaid
• Lack of recognition
• Ineffective leadership.
• No growth opportunities
• Poor work-life balance

Employees are looking for a workplace that doesn’t just pay the bills, but one that creates an environment for growth and personal satisfaction, so that life can be just as good when on the job as it is when workers clock off.

So, as a small business what can you do to encourage staff retention.

• Acknowledge and reward employees – A valued employee is much more likely to be engaged in their role no matter what is happening in their life outside of work.
• Reward high-performing staff – Acknowledging and rewarding high-performing employees encourages retention and inspires motivation for other team members who are looking to progress in their careers.
• Celebrate milestones – celebrated employees feel appreciated. Birthdays and anniversaries are simple But important ways to acknowledge your team.
• Provide flexible working options – Don’t tell Dolly, but 9 to 5 is now a thing of the past. Remote working provides team members with the opportunity to avoid commutes, invest in family time, and create a workday that complements their most productive work periods.
• Encourage and promote social connection – social interaction and time to bond with co-workers can lead to better working relationships and friendships that make their time at work more enjoyable.
• Provide a roadmap to growth and future promotion – staff looking to move up the ladder and gain new opportunities will appreciate you discussing future opportunities they may have, including opportunities to learn and develop their skills.
• Prioritise wellness – work & life balance is constantly discussed and promoting a culture of wellness is becoming more important to existing and potential employees (particularly millennials). Offering a lunchtime yoga class, walking meetings or an area for them to mediate promote wellness and positive mental health.
• Encourage creativity – everyone works differently and can approach problems in different ways. Harness that creativity and encourage outside-the-box thinking. It shows you believe in your team’s ability and you never know how big a positive impact it can have on your bottom line.

Our staff spend a lot of time in the workplace so a happy workplace experience is a key to retaining your people. With the right workplace tools, job satisfaction will grow among employees which provides new opportunities for employees and businesses alike.