Find some of your star employees slipping away? Here’s how to retain them!
If you’re like most hiring managers, HR managers, and recruiters, you’ve probably noticed your job getting harder and harder.
No doubt about it, we’re in a job seeker’s market now. Unemployment is the lowest it’s been in 10 years, and more job openings are going unfilled than ever before. And to add to that, here’s another statistic that’s likely to give you pause.
Job seekers who change jobs every 2 years can make as much as 50 percent more than their job-loyal peers. Chances are that your employees who have been around for longer than that are going to start feeling the pull toward higher pay.
And this is especially true these days, when employers are getting in contact with potential hires more and more, rather than waiting for them to reach out through a job board or other posting.
So, what can you do?
Are your star employees about to jump ship?
The first warning sign is if your pay is below market. If this is the case, someone will very likely try to poach your employees, and they’ll probably be successful.
Beyond that, watch for employees who suddenly use lots of single days of annual leave.
Candidates will often have to attend six or more interviews if they’re interviewing with multiple companies. Most of these will occur during business hours, so keep an eye out for a sudden uptick in “dentist appointments,” “have to wait for a plumber to come to the house,” “sick days,” or other types of single day annual leave.
If you can confirm that an employee is job hunting, or they are taking a lot of leave all of a sudden, the idea isn’t to catch them red handed; rather, it’s to see if you’re in danger of losing a key employee. You want a chance to win them back before it’s too late.
Why fix it?
If you’re not sure whether or not you can afford to increase salaries, think about this. The cost of replacing an employee can be 6 to 9 months of their salary or more.
Another way to look at it is the Netflix philosophy. Netflix managers ask 3 questions about employee salary and retention:
- What could the employee get elsewhere?
- What would we pay to replace them?
- What would you pay to keep the employee if they got a better offer?
Netflix always tries to pay higher than what other companies would. Of course if you’re running a small business there’s a good chance that you can’t just raise pay to whatever you want it to be. But for your best employees, you should get their pay as close as you can to what a competitor would pay.
Even if you’re a little below what other companies might offer, there are different benefits you can give them:
- More paid vacation time.
- A flexible schedule.
- A shortened work week.
- Gear or equipment they’ll enjoy using.
Beyond pay and perks, there is also the employee’s experience at your company. If day-to-day work is boring, unnecessarily stressful, or otherwise awful, it’s going to be a lot easier for competitors to draw employees away.
Betterteam has put together a list of popular jobs, with salary, demand and job descriptions that you may find useful. You can use this tool to see which states are showing the highest demand for a job, the job growth outlook, and median wage nationally, by city size and by industry.
Here’s an example of our info on the accounting industry and accountant as an individual job.
I’d also recommend doing research on Glassdoor and via industry forums to see what people who hold this job are looking for. You can read more about my research techniques here.
The idea is to set your company apart in the areas that actually matter to the people in your important roles.
I hope these tips help you keep your employees and stay staffed up! If you’ve got any additional tips, please let us know in the comments.
Paul Peters is content marketer and job ad writer with Betterteam. Before Betterteam, he spent 6 years building an education startup, where he was was involved with many aspects of the business, including hiring and marketing.