Your business incurs a cost every time a team member leaves and has to be replaced. A new and suitably qualified person has to be found, offered a sufficiently attractive remuneration, and then trained to do the job.  And there are other intangible costs – the initial lower productivity of new hires, the time they take to fit into the workplace culture, and even the impact on other team members – that come with the process. Wouldn’t it be better to just keep team members and not have to spend the time and money finding replacements?

This is easier said than done because of the wide variety of reasons why people leave their job; poor working conditions, boredom from doing the same job year after year, stress, lack of opportunity and the traditional ‘better offer’. It can be difficult to set up a system that addresses every possible reason a person might want to leave. But if you really want to keep the team you have, there are things you can do to make staying an attractive proposition for them.

Developing a retention strategy begins with a reality check.  What’s the turnover rate in your business? Just divide the number of employees who’ve left in the past year by the total number of employees and you’ll get the figure. And don’t count any owners of the business in the total. In smaller businesses it’s probably best to take the average turnover rate over the past three years since a company with four or five employees shows a very high rate of turnover if just one person leaves.

Now look at what you’re currently offering your team members that would be likely to keep them with you:

·       Career development?

·       Skills training?

·       Educational support?

·       Performance incentives?

·       An attractive workplace?

·       A friendly atmosphere?

·       Competitive remuneration?

You’ll notice that remuneration came last on the list. Exit surveys indicate that it’s actually not the reason most people leave their jobs. A better offer can be a trigger if there’s nothing else holding a person to their position, but it’s not usually why most people start to shop around for a new job.

 Explore your options for creating a better total package for your team. Consider health and dental insurance, subsidised childcare costs, and even an extra holiday allowance for employees with say, more than five years’ service.  These cost, but investment in these areas yield bonuses in improved productivity, higher morale and of course a lower turnover rate. Be sure to build in a mechanism that recognises superior performance. This doesn’t have to involve a financial reward – there are plenty of low cost ideas that will be appreciated by your team such as movie tickets.

Another thing clearly shown by surveys is that employees place a high value on communication – on the feeling that they know what’s going on, have a reasonable say in what happens in their organisation, and can make a contribution if they wish.

Everyone in your business represents an investment on which you should be earning a return.  If a team member leaves, this investment is not just lost – it means more cost.   Build a culture in your business that makes it a genuinely enjoyable place to work. Pay attention to the physical premises, be creative with the ways you remunerate your team, maintain two-way lines of communication, and be responsive to the needs of your team members. You’ll find you don’t necessarily have to pay the most to retain the best.