Employee Retention Strategies

May 2021 has had one theme in the world of small business owners: “I need to hire, but can’t find staff.” As COVID cases have decreased and vaccinations have become widely available, the economy is shifting fast. Nearly every business you walk into has a help wanted sign posted on its door. While we don’t have easy answers for this conundrum of the demand for employees increasing so quickly, we do have a suggestion.
Don’t forget your current employees in your search for new staff. They have lots of options right now. We have compiled a list of 7 strategies to retain your existing team. We understand that you can’t change company culture overnight, but many of these recommendations can be implemented fairly easily, with a handful of individual conversations and an assessment of your sales and expenses. We urge you to take the time to do this so a staffing problem doesn’t become a staffing disaster.  

1. Cash Bonuses for staff who recommend someone to hire: This is an easy one to do. Put a 90-day requirement on the new staff member staying, and then give the referring staff person $100 or even $200 as a thank you. We have seen that the staff member who referred the new person is more engaged and helpful in the training process since they have some dollars on the line.  

2. Weekly/Monthly/Quarterly Cash Bonuses for all staff when sales goals are hit: When giving a raise seems too risky, use the bonus system to incentivize your team. Whether it’s a matter of looking at your P&L at the end of the month and dividing up the profit between all members of your team or simply saying that everyone gets $50 if a certain sales goal is hit in a week (make that goal based on knowing your breakeven point!), let the staff know what you’re planning to do. It may even encourage them to sell more.  

3. Make your schedule on a monthly basis: Time is almost an equal benefit to money. Take the time to talk with each staff person individually and understand what his/her ideal schedule is. Build a consistent schedule around what works best for each of them. Some industries may think this is impossible, but it’s worth working for – whether you start with two weeks at a time and then build from there. Tell your staff if they request a day off prior to the next schedule being put out, you will take care of covering it. If they request a day off after that schedule is posted, tell them it’s their responsibility to get the shift covered. Make a point to cover all requests off.  

4. Give formal reviews and feedback: Use a review process for all levels of staff. Share with them the expectations of their positions when they’re hired and then evaluate them based on those expectations on an annual basis (at least). Ask them to set goals for their own work with your organization as part of that process. Look for ways to support them and facilitate their ability to accomplish those goals.  

5. Build reward systems that mean something to your staff: Learn what motivates each staff person. It may be money, time off, a certain schedule, meaningful work, a challenge, autonomy in decision making, heartful notes of appreciation, etc. Once you understand what motivates your staff, build a reward system that will resonate with them once their goals and the company’s goals are achieved.  

6. Dream up other benefit programs: Health insurance and retirement accounts are just two kinds of benefit programs. There are many others. These could be discounts to massages, access to wholesale orders, small investments in savings accts, free tax preparation services sponsored by the company, credit guidance, etc. Be creative in thinking about what other benefits will be appreciated by your staff but not represent an enormous investment from the business’s cash flow. Make the big leap and ask for suggestions from your employees!

7. “A good boss can make a bad job good. And a bad boss can make a good job bad.” We’ve all heard it. This is the one that you can’t change overnight. However, it’s important to understand the reasons why people have left in the past. If you have a middle manager who is negative and ruins morale, this may be the time to make a change there to save other staff from leaving who report to him/her. Look in the mirror – are you a boss that you would want to work for?    

________________________________________________

 Reach out to Anne Shadle and the team of business coaches at the Louisville Small Business Development Center for assistance in implementing these strategies. We are a free coaching resource for small businesses, particularly in the startup, growth, and funding phases of the business life cycle. We are here to help.

 www.lousivillesmallbusiness.com | anne.shadle@uky.edu | www.calendly.com/anneshadle