It is important for small businesses, especially when on a tight budget, to know the cost of replacing staff. According to small business accountant, Accounts and Legal, the average employee costs UK SMEs £11,000 to replace, from initial job specification crafting to onboard training and loss of production.
For businesses to prosper in today’s economy, it is vital to find and retain the best employees. Top talent is especially hard to find when competing against larger companies with bigger budgets for salary and benefits. This article will look at ways that businesses can improve workplace morale and employee retention rates.
- Make sure that employees know what is expected of them, constantly changing expectations can create unhealthy stress which can impact on morale and productivity. A robust induction to the business and the role will assist the employee in knowing what is expected of them and gain an understanding of the culture of the organisation. Providing the employee with a detailed job description allows them to contribute effectively, negating unspoken ambiguity.
- Provide quality management. Employees often cite leaving a manager as opposed to a role, with common complaints being lack of communication, lack of feedback and failure to provide key information. Whilst of course there may be management information that the employee will not be privy to, hiding information needlessly will impact the employee relationship and create mistrust.
- Provide a platform for employees to share ideas and feedback, often employees simply wish to be, and feel heard, via your communication with employees share that you value them and their efforts.
- Ask current employees, especially those with longer service – what the business does well to retain them and maximise on these areas!
- Provide as much flexibility as the business can offer – yes, the organisations strategic objectives matter to your employee – as does their child’s Nativity! Look at ways of incentivising employees, remembering that different people are motivated by different things, not always financial rewards.
- Deal with workplace conflict appropriately – often employees leave their role as an attempt to make their situation better. When managers and business owners know how to effectively deal with workplace conflict their employees feel confident that issues will be dealt with appropriately.
- Empower your employees, reinforcing positive behaviours. When an employee feels empowered and appreciated, they are more likely to feel valued and motivated to continue contributing effectively to the strategic objectives of the organisation.
If we can help you with this or any other HR issue, please do not hesitate to contact a member of our HR Team at HR Services Scotland Ltd on 0800 652 2610