Tue 1 Jan 2008
Your small business will run like a well-oiled machine - but only if all the gears - your employees - fit in well. The only way you can do this is through efficient employee retention.
To hire new employees, you will have to invest a lot of time, money and energy, which could be better used to increase your sales and expand your business.
Treat Them Well
The utmost priority in retaining your best employees is to treat them well. Listen to their grievances, if any, and rectify them as soon as possible. Doing so builds trust between you and your employees - and this bond of trust will convince them that they “belong” with your small business.
Monetary factors are also important to retain your employees. But money it isn't the only thing that matters. Employees also like to look up to a dynamic leader, and that is what you should strive to be, if you want to lead your employees to success.
Incentives and Bonuses
You should make your employees feel that they are an important part of your organization, and that you appreciate their input and hard work. You can do this by hosting regular award functions, or you can reward your employees as suited to your type of business.
For example, if you have a car rental business, you can let your best employee drive a sportscar for a 2 or 3 day vacation. Incentives like these will not only motivate them to work harder, but also give them a pleasant break from work.
Also, keep track of the latest compensation packages available elsewhere, so that you can modify yours accordingly. That way, you will not be caught off-guard if your employees want to leave for more money elsewhere.
By making sure that you have the right people in the right positions, you can ensure that you will be able to attract and retain the best employees. Doing so will, in the long run, help you save money.