Does it ever hurt you to not see your favorite waiter at your regular restaurant? You feel almost heart-broken to know he has left the job. That’s the kind of impact a good employee has on a customer.
Imagine this situation in a company where there’s a great team of Support representatives. Wouldn’t it hurt your customers when they didn’t find the same support guys? A recent study stated that a 5% increase in customer retention can increase a company’s profitability by 75%. And in order to retain a customer, you have got to retain your employees. Remember that the cost of recruitment will always be higher than the cost or retention because of the amount of time, money and resources put in for training an employee. So what can you do to control attrition in your start-up? There are some practical ways that can do the work.
- Transparency of communication: Remember that people always leave bosses not companies. You need to eliminate the room for politics and create an environment of accountability. You can do this by implementing a transparent communication system.
- Give them benefits with salaries: Medical or fitness program, insurance program or provident fund etc are some examples of benefits that you can offer to your employees along with the salary package. Many fitness companies, hospitals, insurance companies can give you employee concessions that would control your costs. Include small perks like coffee machines, free laundry pick-up, free photocopy etc.
- Motivational contests: To a great extent an employee is motivated by work environment and healthy competition. If he feels addicted towards the work place, you have succeeded in your objective. Organize contests related to their work or completely unrelated creative contests like fast typing contest, quizzes, races, badminton championships etc over the weekend.
- Conduct “stay interviews”: Stay interviews are as important as exit interviews. Pick long-tenured employees and ask them to suggest ways of improvement. Tell them that their opinion matters to you. Ask them what they like most about your company and what would make them leave. These interviews give you serious clues as to what makes employees stick and build goodwill among the senior employees.
- Create brand loyalty: One of the most effective ways to retain employees is to build a loyalty for your start-up. Tee shirts, coffee mugs bearing interesting slogans or posters bearing quotes of their favorite business icons etc create a sense of belongingness and loyalty.
- Goal training: Facebook’s Analog Lab informs that the employees are often given quarterly and monthly targets instead of 3-year or 5-year targets. An employee is more likely to nail it when he has a near goal in his mind. Conduct goal trainings on a monthly or quarterly basis and challenge them.
These are some cost-effective ways to help the employees see a long-term perspective with your start-up and make them stay longer. Retention can be crucial to the growth of a start-up today.