High employee turnover rates can be troublesome for medium and small sized businesses. Not only are high employee retention rates expensive, but they also hinder the successful growth of a business. With 57% of organizations viewing employee retention as a problem, specific steps need to be taken to improve overall employee satisfaction and job loyalty. These retention practices need to involve both better hiring practices and better benefit packages for current employees.
Executive placement agency services
Many cases of employee dissatisfaction come from poor hiring decisions. When employees are not a good match for a specific position, they are more likely to be unsatisfied and more likely to seek alternative positions. A recent survey by Robert Half showed that one third (36%) of 1,400 executives surveyed felt the top factor leading to a failed hire, aside from performance issues, is a poor skills match. The second most common reason (30%) was unclear performance objectives.
Working with a professional executive placement agency allows you to better select employee candidates. Employees are screened more thoroughly and their specific job skills are matched with open positions. HR consulting professionals are also able to provide clearer job descriptions, something that is often overlooked in medium to large corporate settings. Leave the executive level hiring decisions to the executive staffing agency.
Entice employees with bonuses
Employees who have the ability to increase their annual salary are more likely to put extra motivation and effort into their work. If the bonus plans are achievable, the increased income is a common reason to stay employed with the company. Bonuses improve employee morale, as well as company profits and the overall success of the company. Change the employee bonus schedules yearly for added incentives and increasing bonus opportunities.
Offer vacation incentives
Bonus plans may be difficult in some types of industries. They may also be more difficult to arrange for employees that are not at the executive level. In these situations, consider offering vacation incentives. Vacation packages are relatively affordable, but can prove to be a great employee motivation. The winners of the vacation package also get a break from work duties and are likely to be appreciative for the rest of the year. The vacation packages do not even have to be anywhere too far away, as most employee appreciate any amount of additional effort from their employer.
Better employee benefits
There are a couple of benefits that are expected in a benefits package. Full time executive level employees expect health insurance, retirement contributions, and sometimes, health savings accounts. Increase employee satisfaction by offering additional employee benefits. Additional employee benefits include things like car allowances, cell phone stipends, retirement matching, and stock options. The more that an employee is invested into their company, the more likely they are to be satisfied with their position. Consult with HR recruiters of the company on ideal employee benfits.
It may be tempting to replace employee with outside candidates. When possible, however, promoting within can provide many benefits for the company. Employees who are given a chance at a higher position are likely to feel more grateful. You can still use the services of an executive placement agency to interview and onboard potential in house employee candidates. The executive HR search firms will still be a crucial part of the hiring process, even when hiring from within.
Employee retention problems within a company can be very expensive. The U.S. Department of Labor estimates that the average cost of a bad hiring decision can equal 30% of the first year?s potential earnings. Executive search consultant services within an executive placement agency can bring up employee satisfaction rates, while also bringing down employee retention rates. Appreciation tends to be the best way to keep employees satisfied, by providing employee incentives, increasing bonus packages, offering additional benefits, and promoting from within. Use professional executive placement agency services to select the best candidates for executive level positions.