How to Retain and Engage Top Performing Employees

How to Retain and Engage Top Performing Employees

5 Employee Retention Strategies for Small Business Employers

Ginger Brunner, CHRP

As this past year of economic uncertainty has seen national and provincial unemployment figures grow, many small business employers have been breathing a sigh of relief as the immediate pressures associated with hiring employees has lifted. But is it all a false sense of security?

According to a recent survey conducted by Watson Wyatt, of 201 large organizations surveyed, 65 per cent of employers said that they are now more concerned about retaining their top performers and essential-skill employees than they were before the economic crisis.

In addition, over the next three to five years, 50 per cent of employers expect an increase difficulty in attracting essential-skill employees, while 55 per cent expect in increase in retaining them.

With the cost of employee turnover estimated to be the equivalent of 6 to 18 months salary (for hourly and management employees respectively) and as smaller businesses continue to compete with larger organizations for top talent now is the time for employers to focus efforts on keeping and engaging their employees.

While the approaches of employers will vary greatly depending on the size, nature and resources available within their business here are 5 proven retention strategies to consider:

1. Communication

Get to know your employees. Talk to them and find out what they enjoy most/least about their job, what their future career plans and development needs are and how you can help them achieve their goals.

2. Learning & Development

Commit to and invest in ongoing learning and development for employees. Involve employees in identifying opportunities for development and the design of their own personal development plan. Not only will the employee benefit by developing their skills, your business and customers benefit from a more knowledgeable and engaged employee.

3. Empowerment

Many small business owners struggle with the thought of letting go of any part of their business, however showing employees that you have faith in their abilities to do their job will go a long way towards engaging and retaining them. Many employees seek autonomy and don’t want to be micro-managed. Delegate tasks, provide employees with clear goals and expectations as well as guidance and support when needed, then stand back and watch them excel.

4. Recognition

Be sure to recognize teams as well as individuals for their accomplishments. Link recognition programs to overall business goals and help employees understand how their job performance links to the overall success of the business. Help employees feel that they have an investment in your business and that their contributions are valued. Consider Westjet, a thriving organization that promotes outstanding customer service and doesn’t just have employees, they have owners.

5. Involvement & Trust

Whenever possible, involve employees in the decision-making process and don’t be afraid to share company performance information (financials, etc.). Doing so will not only help employees understand the rational behind business decisions, they will feel valued and trusted with private company information. They are also likely to be more invested in striving to help the company achieve the overall goals.

By taking the time to focus on developing and implementing key retention and engagement strategies, small business employers will be able to minimize the costs associated with employee turnover and reap the benefits of a engaged employees now and well into the future.

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