Employee retention is extremely important to a business as it creates and leaves a positive impact on the company’s brand. As a startup, a positive branding outlook is crucial as you’re starting out and lack the identity larger companies have.
This means that as a startup, investing in your employees is a surefire way to ensure that there’s little to no employee turnover. Investing in your employees’ well being results in a higher chance of employee retention.
In this article, we fill you in on seven steps you can take and provide you with tips on how to retain talent in your startup and reduce employee turnover.
What Is Employee Retention?
Employee retention can be defined as the process, practices, and policies taken by an organisation to maintain and retain its best talent and employees. This is to reduce employee turnover or the number of people who leave the company during a certain period.
What Is Employee Turnover?
Employee turnover can be defined as the record of the number of people or employees who leave a company during a certain period. Employee turnover is classified into two types, voluntary and involuntary.
Voluntary employee turnover can be defined as when an employee leaves their job for numerous reasons like resignation, an offer to work somewhere else, internal transfer, and a negative work environment. Voluntary employee turnover is more expensive to organisations because these organisations lose top talents.
Involuntary turnover is the exact opposite of voluntary turnover which means employees don’t leave a company on their own accord but due to reasons beyond their control. Some examples include sickness, retirement, relocation, and dismissal.
How to Retain Top Talents for Your Startup
Employee retention is extremely important for startups due to limited cash flows. Branding is important in the beginning stage, so hiring and retaining quality employees is important. In this section, we fill you in on the various tips you can take as a startup to retain talent and reduce employee turnover.
1. Create a Reward System
Employees love a workspace where they feel appreciated and recognised for the good work they do. Having employees dissatisfied with the lack of appreciation and recognition in the workspace will disadvantage your startup.
Build a system of appreciation, recognition, and reward in order to boost the morale and output of your employees. This would lead to employee retention because people stay where they’re appreciated.
2. Ensure Work-Life Balance and Flexibility
A huge factor determining job satisfaction in a workspace and between employees is work flexibility. Work-life balance is an important aspect, so as a startup, ensure you create a workspace that values work-life balance.
It might feel daunting to create more work flexibility, most startups overwork their employees but you should approach a flexible work culture. Remote work or hybrid options will definitely be welcomed as it’s a global new norm.
3. Create a Workspace Filled with Growth and Career Advancement
Growth has become increasingly important to employees and if an employee feels like they are not growing or advancing while working for your startup, they would leave and work where there are opportunities for personal and professional developments.
You can create a workspace that is growth-oriented by introducing programs for your employees and providing free resources, books, online courses, and certifications. You can also enrol them in coding bootcamps like App Academy, Coding Dojo, and Thinkful.
4. Create a Feedback Process or System
Feedback is important if you wish to understand the priorities of your employees, what they value, and what they’d love to see improvement on. Open communication in the workspace creates a positive environment which would encourage people to speak their mind freely.
Create a feedback process and pay attention to the feedback of your employees. Learn from them about what your startup excels in, and what will make their work better, and act on this feedback to show that you care for them.
5. Provide Employees with Good Salary
Top talents know their worth and would not work in an organisation that doesn’t compensate them rightly for the work they do. You can offer them good work compensation or better than other startups in your field or industry.
6. Offer Employee Perks and Benefits
If you lack financial resources as a startup to provide your employees with reasonable work compensation, you can back it up by offering them excellent employee perks and benefits.
According to a Harvard Business Review survey, there are various benefits and perks that employees seek and would prefer to have in their occupations.
Better health, dental, and vision insurance
More flexible work hours
More vacation time
7. Create an Excellent Onboarding Process
An onboarding process can be defined as the steps and practices taken by a company in order to properly integrate new employees. Most employees never forget their first week in a new workspace. You can increase employee retention by establishing a smooth onboarding process strategy. This ensures that employees are properly introduced into the organisation.
Should I Retain Talent And Reduce Employee Turnover?
A resounding YES, you should retain talent and reduce employee turnover as a startup. You may risk losing credibility if employees constantly leave the company. To retain talent and reduce turnover, employ the employee retention strategies listed above!
This article was contributed by professionals at Career Karma. Career Karma is the easiest way to find a job training program online. They help over 1 million workers navigate their careers every month through advice and coaching.
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