With labor shortages at an all-time high across a multitude of industries, decreasing employee turnover has never been more important.
As the COVID-19 pandemic rages on almost two years later, businesses across the country are continuing to feel its effects. In particular, small businesses have been hit the hardest, with historical labor shortages and supply chain disruptions changing the way their organizations operate. In fact, 51% of small businesses have reported having roles that they are unable to fill, despite arduous hiring and recruitment efforts. In turn, employee scarcities have had a profound effect on a range of industries, as the demand for new talent only persists.
With job openings at an all-time high, workers have more autonomy and power than ever before. And with several industries turning to hybrid or fully remote work models, employees are valuing company culture much more than pre-pandemic. As we kickstart 2022, small businesses that fail to keep employee retention top of mind will fall short. Take care of valuable team members and, in turn, boost your company’s productivity with these 4 tips:
Invest in your employees from the start
For customer service-focused companies like Brakes To Go, employees are the face of your business. Thus, it’s vital to seek employees that want to invest their time and effort into your company. Not to mention, it’s estimated that losing an employee will cost your business anywhere from 6-9 months of that employee’s salary. By seeking people that will resonate with your values and fit right into your workplace culture, you’ll prevent turnover before it begins.
Training and development also play an integral part in the socialization of new employees and often determine if they will succeed at your institution long-term. Employers that invest in their teams are also viewed more favorably by their employees. To start your team members off strong, it’s vital to establish onboarding best practices, create a training checklist, and integrate your organization’s cultural values into the development program. With the right program in place, your team can nurture invaluable talent and prevent fatigue further down the line.
Reduce workplace burnout
One of the top drivers of low employee satisfaction and turnover is burnout in the workplace. A 2021 survey found that more than 50% of workers said they felt burned out, and more than two-thirds reported this feeling worsening due to the pandemic. In most cases, the top driver of this is lack of support or recognition from leadership, especially when it comes to positive reinforcement. This sheds light on the critical role that leaders play in setting the tone at a company.
At Brakes To Go, we take a different approach than most service companies. We’ve found that small tokens of appreciation like stocking up the fridge with snacks or taking the team out for a fun activity go a long way. Given that nearly 70 percent of workers feel their leaders are not doing enough to prevent or alleviate burnout within their organization, demonstrating gratitude consistently to your team is crucial, especially during unprecedented times like the coronavirus pandemic.
Offer competitive compensation
With sky high job vacancies affecting a multitude of industries, employees will be picky about their compensation. In fact, reasons for quitting related to pay and benefits have increased by more than 26 percent since 2010. At Brakes To Go, we pay about ten percent above the industry average and raised our pay during the height of lockdown to combat high turnover rates nationwide.
A competitive pay rate is proven to contribute to overall job satisfaction. When your team members feel that they’re being compensated fairly, they are more likely to be productive and go above and beyond for your business. Not to mention, higher salaries lead to better employee retention and morale.
Make company culture your top priority
If organizational culture is not the center of your business, your company is bound to fall short. Company culture encompasses your team’s mission, objectives, expectations, and values that guide organizational members in the right direction. For instance, independence and respect for our people are integrated into Brakes To Go’s culture. We’ve found that by giving employees autonomy and establishing trust, our team members will make strides for the business.
With the pandemic impacting the way teams interact with one another, figuring out how to maintain engagement is vital to success. Our business has had to check in with employees on their levels of comfortability, and come up with pandemic-friendly activities to sustain team spirit. With 56% of workers citing a strong workplace culture as a top factor, the way organizations prioritize company culture will determine retention rates in 2022.
With employee shortages sweeping the nation, preventing employee turnover is important now more than ever. With the right tools, your organization can set your employees up for success, and save yourselves time and money in the process.
By Randall C. Huntsinger