I was always amazed at cost-per-hire studies that showed how expensive it was to hire someone. The cost of hiring an hourly employee averaged more than $2,500. Salaried employees cost nearly five times that.
That alone should make us consider how important our employees are. But there also is hidden value: the stuff that your employees know that isn't recorded anywhere. In other words, when they leave, there goes the expertise.
Add to that the difficulty of securing training for new employees, and it becomes clear: You should work to retain your good employees.
Here's how:
- Set clear expectations each year. Define each employee's role in the big picture. It is easier for an employee to deliver when he knows what is expected.
- Give the employee the tools to do her part. Even if you can't afford formal training, you can meet regularly to discuss what needs to be done and how she can contribute.
- Share your experience when coaching the employee. Get his or her feedback, too.
- Catch employees in the act of doing something good -- and respond favorably. One of my favorite bosses always begins his feedback with what he likes, and then he suggests options for approaching things differently. This is so different than being criticized for one’s hard work.
- Remember that negative criticism rings loud and lasts long. Double the positive feedback so employees will hear your suggestions for improvement.
- Remember that you, too, are an employee. How does it feel to be valued? Show some of that consideration to others.
- Be an approachable boss. If you are seen as a human being, if you are easy to talk to, if you have a sense of humor, then people will want to stay with you.
- Model healthy leadership. For instance, if you send e-mails in the early morning or late at night, your employees may infer that those hours are considered part of the work day. Is that what you want?
- Remember that every interaction counts. How you respond, how you listen, how you recognize good performance -- and the fact that you do -- is an enormous motivator.
- Avoid two things that deflate performance: lack of appreciation and demonstration of anger. You will receive enormous return from your staff by showing folks that you are grateful. And harness frustration and anger -- because you can never take it back.
Hold on to those valued employees. Turnover is costly: to the customer, to the reader, to the company, and to you.
This should be required reading by all managers, but it...
