Employee turnover is one of the highest preventable business costs.
Losing a valued employee disrupts your production process and forces you to spend time and money finding and training a replacement. It also angers customers, who come to trust a particular employee and don’t want to deal with a different one.
As the construction industry has one of the highest turnover rates, reducing your turnover gives you immediate advantages over your competitors. The following tips will help you do just that:
👉Related: Ultimate labor tracking guide for business owners
Employees are less likely to resign if they have close relationships with their supervisors and co-workers. As a CEO, it’s your job to give them every opportunity to form strong ties with each other. Organize sports, film viewings, and company parties. If your employees drink, invite them out to a bar after hours and buy them a round. The more friendships you can encourage, the more incentives your employees will have to stay where they are.
It sounds counterintuitive, but reducing employee turnover requires you to fire employees who make life difficult for their co-workers. Keeping someone on payroll who reduces employee morale will do more harm than good in the long run.
Your employees should feel safe and confident while working for you, but they can’t do this if they’re subject to harassment, belittling comments, or disrespect. If one of your employees is making the others feel unsafe, firing that employee is more than worth the cost of replacement. Employee retention should never be placed above employee safety or positive company culture.
Your business should offer its best employees a career, not a job. Bonuses, raises, and promotions are a great way to show your workers you recognize and value their contributions. For best results, offer your employees training in new skills. If one of your employees expresses interest in a management position, for example, offer to pay for him or her to take business classes.
This will not only encourage loyalty but will also make sure that your employee will be qualified to carry out the new responsibilities you give him or her.
Encouraging employee loyalty means listening to your workers and responding to their complaints. A complaints box is a good way to start, but more active methods, such as periodically surveying your workers, allow you to catch problems more quickly.
It’s also important to conduct exit interviews for employees who choose to resign. By understanding how your actions cost you these employees, you can avoid making the same mistakes in the future.
Improving morale and reducing turnover is key to a healthy business in the long run. Making sure employees are heard, pay is fair, and work requirements and promotions are both reasonable is a great place to start.