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Attracting and retaining good employees in today’s business world is extremely difficult. A growing number of employees are feeling the pressures of rising costs, the threat of job displacement due to technology and a perceived lack of respect and loyalty from their employers. This is causing a shift in the ways companies need to operate in order to successfully navigate employee retention and recruiting.
Below, I’ll share five things you can do to attract and retain good, highly engaged employees to your business.
Related: How to Attract and Retain Top Talent
1. Family care benefits
Outside of work, employees often have a lot on their plate. Caring for children has always been a balancing act for workers. However, this is becoming increasingly difficult since the current economic climate often requires both parents to join the workforce. In the United States, the average cost of childcare is nearly $15,000 a year. With the rising costs of childcare, many employees have been forced to choose between their careers and caring for their children.
Companies that offer benefits like on-site daycare centers, dependent care flexible spending accounts (FSAs), parental leave policies and discounted babysitting services can reduce their team’s stress and keep them more engaged at work.
Companies should also acknowledge that some employees don’t have children, so adding benefits such as pet insurance or elderly care is a great way to make sure everyone feels included.
2. Focus on employee wellbeing and mental health
Each year, the global economy loses about $1 trillion to decreased productivity as a result of burnout, depression and anxiety. The reality is that more and more employees are suffering from mental stress as a result of economic uncertainty, global instability and technology addiction.
Employers who recognize this can position themselves to support their employees. Not only will this boost productivity, but it can also encourage loyalty from employees who truly believe their employer has their best interests in mind.
We live in an era where employees are often expected to carry the work that was once handled by two or three people. While maximizing resources is smart, entrepreneurs need to make sure they aren’t creating unintended consequences for the business.
One of the top factors in employee wellbeing is work-life balance. Companies can relieve stress by making sure their team has the right resources available and feel that they can reasonably unplug and recharge. Entrepreneurs should carefully evaluate if they are overloading their employees and ensure that work is distributed equally. In addition, getting rid of employees who aren’t pulling their weight can boost morale and productivity within the remaining team.
Related: 8 Ways to Foster an Environment of Employee Wellbeing
3. Job insecurity
Layoffs seem to be in the news every other day. Some of these losses are a result of the economy; others are a result of job displacement due to technological advancements. If employees feel uncertain about the future of the company, they will be more likely to leave and not risk sticking around to see their job eliminated.
Unfortunately, there is a growing culture of disloyalty to employers as employees feel like expendable resources. Entrepreneurs can shift this narrative and retain their workforce by staying proactive. Open and transparent communication can provide a comfortable level for uneasy employees. Companies can also offer incentives such as severance packages or extended layoff notification periods to give employees the peace of mind that they will have some level of protection if the worst happens.
4. Reevaluate compensation packages
The cosmetic retail brand Sephora received a lot of heat in the news recently for “rewarding” their employees with a cookie for helping the company achieve its $10 billion revenue goal. With rising inflation and increased costs of living, pizza parties and gift certificates will no longer be sufficient in retaining employees. This forces employees to seek better compensation elsewhere by finding a new job.
Employees are quickly realizing that loyalty no longer pays. Why would employees stick around for a 3% annual merit increase when they could get 10% more by changing employers? Companies that focus on paying their existing employees market rates will reduce the risk of employees pursuing more lucrative salaries with other companies.
Related: Employee Retention: 4 Tips to Help Keep Your Top Talent
5. Address toxic cultures and work environments
Employees want to work in an environment where the entire team pulls together toward a common goal. Unfortunately, the average workplace is teeming with toxic cultures and poor leaders. Since employee referrals are one of the best sources of new talent, having a bad culture not only drives away good employees but also reduces the chance of finding high-quality talent.
This is especially true in an era where employees have access to employer reviews on sites like Glassdoor. The key to building a better culture is carefully listening to what employees have to say about the company. As an entrepreneur, driving a healthy and desirable culture begins and ends with you.