Are you tired of having to go through the interview process every few months? If so, have you taken some time out to consider exactly why you keep having to do so? Is your business expanding rapidly you’re probably not very upset about having to find new employees. On the other hand, if you simply have a high employee turnover rate you may need to get to the root of the problem – why are your employees coming and going so quickly?
There are seven key components to employee retention – things you need to explore and understand. They are:
The local labour market – Are there many jobs available or are people fighting over jobs as they become available?
Your employee age profile – Age discrimination is wrong. However, what’s the average age of your employee base? Do they tend to be very young people looking for a job to start out in or are they older employees who are more likely to want to stay in one place for a longer period of time.
Education – What’s the local education sector like? Are potential employees in your area likely to be high school graduates, college graduates, etc. What levels of education do you look for when you hire?
Your employer reputation – Does your organisation have a good reputation as an employer? Do people hear good things about you and want to work for you, or do your employees talk about how uncaring and difficult you are to deal with?
Managerial competencies – Is your organisation stocked with competent managers that follow great employment practices or are they vague and difficult to work with?
Compensation – Do you offer competitive pay and benefits packages or can your employees easily find better pay elsewhere after gaining experience working for you?
Ability to change – Is your organisation stuck in a rut or does it have the ability to grow and change as the economy and marketplace changes?
The answers to these questions will tell you alot about your organisation and its ability to retain good employees. Is there anything you can do right now to improve your employee retention rate?