It’s no secret that hiring the right people is a big challenge for small business owners. However, recent statistics show that employee turnover and staff retention rates have been falling dramatically in recent years and are an even bigger problem within the small business sector.
Recent research into the top reasons for start up business failure highlighted hiring staff as the third most common reason for start ups to fail, with 23 per cent of respondents citing not having the right team as an issue.
Unfortunately, with the cost to replace a single staff member adding up to an average of more than $22,000 for small businesses , employee turnover is expensive.
That’s why hiring and retaining the right people is important and it pays to invest in creating a culture that ensures your best people stick around to help your small business grow.
Invest in training and developing staff
Investing in staff training can be a scary decision for a small business but making the leap is a risk worth taking. Implementing a training strategy and employee development programme shows your staff that you are committed to investing in their capabilities, and in doing so they will have the potential and tools available to advance in their career within your business. Make sure that you take the time to sit down with your team members to discuss their career paths and establish clear steps towards these goals. Investing in your staffs’ professional development demonstrates you are genuinely interested in helping them progress.
Create a strong workplace culture
Ethics, expectations, values and having a clear vision are all crucial ingredients of a strong business culture. A strong business culture has the power to:
- Attract talent
- Drive engagement and retention
- Increase employee satisfaction.
Although these benefits highlight the importance of implementing a distinct workplace culture, unfortunately many employers mistakingly believe they have the "right culture".
So, what can you do? Some of the proven ways to create a strong workplace culture include:
- Recognising and rewarding employee achievements;
- Celebrating the business’ successes – regardless of how big or small;
- Creating a clear vision statement for your business and communicating it with your team;
- Facilitating regular feedback and implementing suggested improvements where possible; and
- Offering employee perks and benefits – whether it’s fun Friday lunches, weekly yoga and meditation sessions, flexible working arrangements, volunteering opportunities or otherwise, there’s lots of ways to keep your employees happy and engaged.
Taking the time to invest in your company’s culture and your employee retention strategy can take a bit of trial and error to get right. Have patience from the outset and make the commitment to adapt and change as your business – and the people within it – grow.
Contact us to find out more about how BOQ Business can support your small business.