Save Time and Money: Retain Employees

It can be hard to build a business if you are spending all of your time interviewing and training new hires. In many small companies, the business owner handles the bulk of this task. Because of this, high employee turn-over could be as costly as a raw material price increase. Retaining quality employees should be a business imperative. Here are a few ways you can hold on to the good ones without breaking the bank.

See the Future

Don't just hire for the immediate need. Understanding the job candidate's long term career goals can help avoid frustration down the road. In a Wall Street Journal - CareerJournal survey, 35% of people said they were changing jobs because they were dissatisfied with their career path. Avoid this problem by having an agreed upon career path.

Map it Out

Clearly understood expectations, objectives and responsibilities help keep employees focused and give them a sense of accomplishment when milestones are reached. It also gives you a chance to celebrate your employees' successes. Don't underestimate the value of a simple pat on the back and "job well done" comment from the boss.

Be Flexible

Telecommuting, job sharing, and flexible schedules can be more valuable to some employees than an increased salary. An employee with children, for instance, may find the benefit of a 7am to 3pm schedule valuable enough to stay at a job long-term. The employee can be just as productive, but the flexible schedule allows for time with her children in the afternoon. It doesn't cost the company anything extra, but the work/life balance it provides the employee is invaluable.

Some companies offer flexible schedules to the entire staff. The offices of Mattel close every Friday afternoon, and employees can take off four Fridays of their choosing each year. They also get 16 hours off every year to volunteer at local schools. Mattel has certainly lost man-hours because of this schedule, but this unique job perk is a big draw when the company recruits new hires.

Make Room for Fun

Microsoft uses a "team morale budget." Vera Bradley has a "Happy Committee." At a minimum, employees spend half of the waking day at the office. Who says that they can't have fun and be productive at the same time? Start your own company traditions that infuse fun into the workplace.

I once worked with a company that hosted lunch one Friday a month. What made this unusual is that the lunch was prepared by a team of employees. A different group hosted each month. That group would choose the menu, shop for the food (money supplied by the company) and prepare the meal for the whole office.

Eventually it became very competitive as people became more creative with their menus, sometimes incorporating themes and decorations. Sales people would choose that day to bring clients to the office, and rarely did employees accept outside meetings. The employees involved in preparing the lunches would miss a few hours of work that day, but that lost productivity was more than made up for with the boost to company morale.

What's the Benefit to Me?

The benefit package a company offers can be a deciding factor in how long employees stay in their jobs. The CareerJournal study showed that 53% of people make job changes to improve their compensation and benefits package.

Of course, there are the obvious elements of a benefit package; health insurance, 401K, bonuses, company cars, etc. But if your company cannot afford all of these benefits, think creatively. What can you offer your employees that would make your company difficult to leave? Can you offer something that would promote work/life balance? Or, can you make their time at work a little more comfortable?

Some gyms, for instance, give deeply discounted rates to companies in return for a minimum participation level. For $30 a month you can offer your employee a perk that they might not only brag to friends about, but that also promotes a healthy life. Negotiate discounted rates with a few local businesses like dry cleaners or local coffee shops. The businesses will welcome the added traffic in their stores, and your employees will feel like they are part of a bigger company. Even something as simple as well-liked, name brand coffee can be an appreciated perk. Go the extra step and provide coffee shop-like toppings and real milk and your employees may even get to work earlier in the morning!

The Right Mix

One of the best ways to retain your employees is to make good hiring decisions on the front end. An employee that is a good match for the job, as well as the environment, will stay longer than a square peg in a round hole.

And as costly as it can be to train new employees, it can be even more costly to have a negative employee poison the work environment. You know the employee I'm talking about: they complain, they gossip, they spread ill will. Learning when to let go of a bad egg can be as important as learning how to hold on to the good ones.