The typical cost of hiring a new employee is between 15-25% of the employee’s salary. That means an employee with a salary of $50,000 will cost as much as $12,500 to write the ad, interview, run background checks, and then train. A survey of 201 CEO believes that the employee will not be fully productive for 6 months. It is much more cost-effective to retain good employees!
Retaining good employees is a challenge and you have to compete with large firms offering higher salaries and less expensive benefits. Here are some benefits are no cost or low cost but will help increase retention of your employees:
Recognition Program
One of the top reasons employees leave employers is they don’t feel appreciated according to a Gallup Research poll. A well-designed recognition program lets employees know you care about them and recognize their contribution to the company. As the owner/CEO a public recognition of an employee with a certificate and maybe some snacks or a small award goes a mile in instilling pride and job satisfaction. A short meeting with senior management of the company allows the employees to express concerns and give them a feeling of ownership in the organization. Employees can be recognized with a personal phone call, social media, email, or at a company function. (51% of employees found this benefit important)
Flexibility
Employers can provide employees with flexible schedules! A flexible schedule reduces workplace stress and improves work/life balance. It also helps the sandwich generation who are taking care of their parents and their kids. What about a 4-day work week? This gives employees more free time and reduces commuting time and costs. Many employees would take a job that offered a 4-day work week over a higher paying 5-day-a-week job.
Wellness Program
Covid-19 highlighted the challenges people face in their life. A well-designed wellness program could include reimbursements for virtual mental health sessions, stress management, gym memberships and classes, weight loss, smoking, or diabetes management. They also tell your employees that you care about them and their families. On the plus side, you will also end up saving money. Many organizations have seen a $3 savings for every dollar they spent. If you are interested in starting a wellness program, Massachusetts offers several resources to get you started at https://www.mass.gov/lists/resources-for-starting-a-wellness-program. Get to know your employees and find out what is important to them.
Training
35% of employees in a recent survey said they appreciated employers that offer training and new learning opportunities. This could be in the form of tuition reimbursement, lunch and learn seminars, and conferences. It could even be a beer-making class or wine tasting.
Most Unique Perks
What are the most unique perks you provide employees. Companies like Google, Proctor & Gamble and The Huffington Post offer a nap room for tired, stressed employees. Studies have shown and 20-minute nap can recharge your batteries. Some companies are allowing people to bring their dogs to work and even providing pet insurance? Ben and Jerry’s provides their employees with 3 pints of ice cream every day. This makes them very popular with friends and family. Lastly and maybe my favorite is midday surfing. Patagonia encourages its employees to catch a wave or two in the middle of the workday and even provides daily surf reports.
I would love to hear about your favorite perk at work!!
Matchbooks is a virtual bookkeeping and consulting company. We help companies like yours make more informed decisions, increase cash flow and improve daily operations. For more information contact us at consulting@matchbooksusa.com