One of the biggest, unavoidable and inevitable problems of any business is its failure to retain employees.
Employee turnover is costly to businesses. It costs around $15000-$25000 per employee to firms as a turnover cost. A study by U.S Department of Labor’s Bureau of Labor Statistics tells us that the median tenure for millennial employees (25-35 years) is just 3 years.
Retaining your top employees is easy if your know how to instill equity at your workplace. It’s Quid Oro Quo era. You do something fair to your employees and you get treated fairly, consequentially.
Though there are no guaranteed techniques, but these four key assumptions can help your workplace.
Every Employee Works for Rewards
Employees need to be assured that they are compensated equitably. The compensation needs to be monetary but not necessarily. There are many other ways to do it, like delegating more to your employees who are better performers, providing more collaborative and professional opportunities and continual feedback.
At the end of the day, every employee should get as much as they are putting into their work. If an employee is getting paid less than the other for doing the same job, he will never be happy with working in any such workplace.
Employees Seek Empowerment
With the aforementioned condition fulfilled, employees will take more responsibility and pride in their work. You can take you managerial skills a notch up by empowering your employees. Give them the resources they need for polishing their skills.
One of the top reasons why people leave jobs is because of no professional development opportunities. You need to take employees as an investment into your company. Cater to the entrepreneurial flare of your millennial and Gen-Z employees by setting up intrapreneurship programs.
Make sure your employees have what they need to develop themselves at their job.
Unfair Treatment Leads To Stressed Employees
Inequity is the real reason why disappointment breeds in an organization. Stress amongst employees will lead to a loss of productivity. Some employees may even turn counterproductive. If an employee gets to know that the manager is spending more on other s’ development and training, making more money, or is encouraged more for his work, disappointment will rise.
Treat everyone fairly. If some employee is getting more privileges and for a reason, elucidates that to your employee.
Stressed Employees Will Look for Ways to Restore Equity
What goes around comes around. If an employee feels he is treated unfairly, he is going to do something about it. And if he couldn’t find a way out within the organization, then there are other ways to do it. One of them is to leave and move on.
Empower, trust and be equitable with your employees and you will see a downturn in employee turnover.