Losing a valued employee can be a big blow to a small business, especially since there is such a huge cost associated with finding the right employee and training him/her to become productive. That makes it well worth your while as an employer to have a strategy in place for employee retention.

Onboarding

The best way to setup a new employer for success is to have a formalized onboarding process, where the new employee can learn as much as possible about the job and the company, and about what their role is in the company. A really good onboarding program would include a mix of instruction, discussion with other company employees, and hands-on learning.

Compensation

It goes without saying that in order to be competitive and to have a reasonable chance of employee retention, that employees must be compensated fairly, according to market value. This means more than paying them a fair salary though, and should also include vacation time, sick time, good health benefits, and a retirement plan. The right small business loans can help you finance your venture sufficiently to offer competitive compensation for your employees.

Recognition

Everyone likes their good work to be recognized and appreciated, rather than to have extra effort go unnoticed and simply expected as a condition of employment. While expressions of gratitude do help in this regard, a formalized program of recognition would be even better, wherein employees receive incentives and possibly bonuses for extra effort.

Personal growth

In survey after survey, one of the things most often mentioned by employees as providing high job satisfaction is the opportunity for personal growth. All good employees like to feel that they are improving and becoming more accomplished in their careers. You can accommodate this good feeling of job satisfaction by providing opportunities for training and development, and also by delegating important tasks to qualified employees.

Work-life balance

It’s essential for the sake of employee retention, that you make sure your employees are not spending too much of their time at work, at least not for any extended length of time. It’s not healthy for a person to be completely absorbed with work at the expense of personal time. If this goes on for a while, it can definitely lead to decreased employee performance, and possibly even burnout.