How to Retain Your Best Employees

Aug 23, 2024 | Listen

Kristie Holmes and Kathy Svetina share why businesses need an employee retention strategy so they can keep the right people on the Help, My Business is Growing podcast.

When you have an employee retention plan in place, you’re more likely to have happier employees. Your productivity level is high and morale even higher because your team feels valued, appreciated, and motivated to give their best. 

Yet, many small businesses totally drop the ball when it comes to keeping their best talent.

So what’s happening to make people want to leave? Why is this so common across many industries? And what can you do in your business to keep your best and brightest people?

Kristie Holmes: Small Business Employee Retention Strategies

In this episode, Kristie Holmes, a recruiting specialist, and I explore the challenges small businesses face in keeping their best employees. We discuss why businesses struggle with retention and share practical strategies to improve it. From offering professional development opportunities to recognizing employee achievements, she provides actionable tips to help you keep your team in your business and show them your appreciation. 



Timestamps for this week’s episode

02:49 Why a good retention strategy is important

04:14 Common issues affecting employee retention

07:36 The perceived appreciation gap between managers and employees

21:45 Employee training and development on a tight budget

36:16 Actionable steps to take to foster appreciation and gratitude


Why a good retention strategy is important

A solid retention strategy is crucial for businesses, and here’s why: turnover hits your bottom line hard. When someone leaves, it’s not just about the cost of finding a replacement including job posting and recruiter costs, but also all the other indirect costs. The time you need to invest to do everything again is one, and while you’re searching for a replacement, someone else on the team is often picking up the slack, which can lead to decreased productivity across the board. 

But beyond the finances, a good retention plan fosters a positive workplace environment where employees feel valued and motivated. When employees feel appreciated and have opportunities for growth, they’re more likely to stay committed to the company. That means less turnover, less stress, and a team that’s firing on all cylinders, ready to help your business hit its goals.  

It's a very simple thing that you can do - to make sure you're taking a minute to tell your employees how much you appreciate their hard work.”

Common issues affecting employee retention

The two most common reasons that affect employee retention are people not feeling appreciated by management and their desire for career growth and development. 

Many job seekers don’t feel appreciated enough in their current or past jobs and sadly, there is a big disconnect between what managers think they’re doing and what employees actually feel. For example, in a recent study, 80% of managers thought they were doing a good job showing appreciation, but only 40% of employees felt appreciated. It may be a simple thing, but just taking a moment to say thanks or to recognize someone for their hard work, can go a long way in keeping them motivated and happy.

There is also the desire for employees for growth and development opportunities. People want to feel like they’re progressing in their careers and this could be achieved through online courses, webinars, or even just getting feedback and guidance from their boss. When employers invest in their employees’ growth, it shows they care about their success and future within the company – and beyond.

“You can build a culture of appreciation from the top down, when the owner and the managers are thanking the team, then it’s just a matter of time till the team starts thanking each other.”  – Kristie Holmes

The perceived appreciation gap between managers and employees

The disconnect between how managers show appreciation and how employees feel comes down to how genuine and personal the “recognition” feels like. Sometimes, managers might simply say a quick “thanks” or send an email, thinking it covers “showing appreciation”. But for employees, real recognition means their efforts are celebrated – be it to the rest of the team or privately – with a personal touch, like a specific note or a face-to-face thank you that shows genuine gratitude.

To achieve this, you’ll have to take the time to get to know your employees so you can show them your thanks in relevant ways or ways that matter to them individually. You could give shoutouts and other forms of public recognition in team meetings, over a private chat and so on. When you understand what resonates with each of your employees, you build trust, boost morale, increase job satisfaction, and loyalty among your team.

Anytime an employee is doing anything for you. I don't care what it is. If they're doing work for the company, they should be getting paid for that time.

Employee training and development on a tight budget

Training employees on a tight budget may seem impossible but there are ways to make it happen. The first step would be to figure out the unique learning styles of your team members. Some may be visual learners who learn best using visual aids and detailed notes. Others might be more hands-on and prefer to shadow their instructors. And then you may also have employees who like to watch instructional videos. 

Once you know what kind of learners each of your staff is, you can now choose how to train them.  Since the budget is small, getting creative is key. You can take advantage of platforms like YouTube, which offer a wealth of free resources or you can also encourage your in-house resident experts to mentor or share their knowledge among team members.

“To establish that culture of appreciation, it always starts with ownership. So the owner’s got to have that mindset and has to understand the importance of it.” -Kristie Holmes

Actionable steps to take to foster appreciation and gratitude in your business

Be intentional about appreciating your employees’ efforts and successes. Don’t take them for granted. Whether it’s publicly recognizing achievements during team meetings or privately thanking them, just by showing your appreciation, your actions can have a meaningful impact on your staff’s morale and motivation.  

Then have meaningful and real conversations with them so you learn what motivates them and what their goals are.  If you take some time to chat with them, find out what drives them and how the company can support their goals, thus creating an environment where employees feel valued and understood.

Summary

  • A solid retention strategy can help keep employees motivated while reducing turnover costs.

  • Simple gestures like saying thank you or offering growth opportunities can boost the morale of employees who feel unappreciated.

  • Personal recognition builds trust so take time to understand each employee’s preference for appreciation to keep them engaged.

  • Training on a tight budget is possible via free resources like YouTube and your internal experts.  

  • Show your appreciation to your employees through public recognition and private thanks and regularly discuss their goals to make them feel cared for and valued.

Transcript

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About guest – Kristie Holmes

Owner

The HR Dept, LLC

Kristie Holmes is the dynamic force behind The HR Dept. With over 15 years of profound experience in recruiting and Human Resources across a spectrum of industries, Kristie embodies the spirit of innovation and dedication.

Kristie’s educational journey, marked by a Bachelor of Arts in Journalism from the University of Memphis and a Master in Business Administration specializing in Human Resources from Bethel University, has equipped her with not just knowledge but a visionary outlook toward HR solutions. Her mission to provide tailored HR services ensures that small businesses not only survive but thrive in today’s competitive landscape.

With a background that spans construction, restaurants, marketing/sales, automotive collision, dental offices, higher education, security, and more, Kristie brings a wealth of knowledge and a unique perspective. She believes in the power of building strong relationships and delivering a personal touch.

Download her HR templates to help you get your recruitment process in place:

https://thehrdeptky.com/resources/

Website: https://thehrdeptky.com/

LinkedIn: https://www.linkedin.com/company/the-hr-dept-llc/

Instagram: https://www.instagram.com/thehrdeptky/
Facebook:https://www.facebook.com/thehrdeptky


About host – Kathy Svetina

Kathy Svetina is a Fractional CFO for growing small businesses with $10M+ in annual revenue.

Clients hire her when they’re unsure about what’s going on in their finances, are stressed out by making financial decisions, or need to structure their finances to keep up with their growth.

She solves their nagging money mysteries and builds a financial structure with a tailored financial strategy. That way they can grow in a financially healthy and sustainable way.

Kathy is based in Chicago, IL and works with clients all over the US.

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