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  • Employee retention is a critical aspect of any successful organization. High employee turnover can be costly regarding financial resources and the loss of valuable talent and institutional knowledge. In today’s competitive job market, creating a work environment that attracts and retains top talent is more critical than ever.

    After you’ve finished the recruitment process and you’ve hired your employees, keeping them happy on the team is essential. In addition to the cost benefits of employment continuity, there are also morale and productivity benefits.

    What Is Employee Retention? 

    Employee retention refers to an organization’s ability to retain its employees for a significant period of time – its aptness to keep employees engaged, motivated, and committed to their goals, mission, and vision.

    Just because you hire a new employee doesn’t mean the recruitment process is over; rather, it’s time to switch your focus to retention. Retention is a holistic approach involving a comprehensive plan to create a positive work environment that not only attracts top talent but encourages them to stay.

    Why Is Employee Retention Important? 

    Employee retention is crucial because it impacts every organization’s bottom line, productivity, and overall success. Thus, it is not something you should overlook. Here are just a few of the many reasons why you need to take the time to retain your workforce:

    High employee turnover can be costly for organizations. 

    The cost of hiring and training new employees can be substantial, in fact, the average cost of employee turnover is 33% of the worker’s annual salary. Plus, the loss of valuable talent and institutional knowledge can negatively impact your business’ productivity and performance. Retaining employees can help reduce these costs and ensure you maintain a stable and experienced workforce.

    Improves employee productivity and performance. 

    Employees who feel valued and engaged are more likely to be motivated and committed to the organization’s goals, mission, and vision. This can lead to increased productivity, improved quality of work, and better customer service.

    Helps to build a positive organizational culture. 

    Employees who are rewarded and recognized for their hard work are more likely to have a positive attitude toward their work and their colleagues, fostering a more collaborative and supportive work environment.

    Improves the organization’s reputation. 

    Word of mouth continues to be one of the most authentic and influential forms of recruiting and referrals. Happy and engaged employees are more likely to speak positively about the organization to others, including potential customers and job candidates. This can attract top talent and improve your brand’s image.

    Support the organization’s long-term success. 

    Long-time employees develop a deep understanding of your culture, values, and operations. Their commitment to your business is valuable as it can lead to increased innovation, improved decision-making, and better problem-solving from your team.

    How Do You Retain Top Talent? 

    In today’s fast-paced job market, retaining top talent is crucial for any organization looking to maintain a competitive edge, and there are several strategies that can be implemented to achieve this goal. We’ve compiled a list of effective tactics worth considering to keep your employees happy and your team strong.

    Train your managers.

    The majority of the time, employees do not leave organizations—they leave managers. You may have excellent managers that can perform many functions of the job, but if they don’t know how to manage, motivate, and treat employees fairly and effectively, you will face employee dissatisfaction and turnover.

    Offer extrinsic and intrinsic rewards.

    Ensure you are offering an equitable salary and bonuses within your geographic area and industry. Additionally, benefits such as health insurance, retirement plans, and other perks, including flexible work arrangements and paid time off (PTO), should be equitable (extrinsic rewards).
    Employees don’t stay just for the pay. They also need to know that their work makes a positive difference to the goals of the company, their managers, customers, and fellow employees (intrinsic rewards).

    Consider company culture during the hiring process.

    A positive work environment is essential for employee retention. This should include promoting a culture of respect, open communication, and teamwork, as well as providing a safe and comfortable physical environment.

    While a candidate may possess all the skills necessary to perform the job, if they are not a good fit with your company culture and fellow employees, they are not a good fit for the company. Hiring them anyway will result in increased turnover.

    Promote from within.

    When employees have the opportunity to create a career path within their company, they are motivated to stay. Employees want to feel that they are growing and developing in their careers. If you pass over suitable, qualified employees for promotions or even desired lateral moves, they will leave and go to a company that recognizes and rewards their efforts.

    Give frequent feedback.

    Don’t wait until review time to give feedback. Your employees want to know how they are doing and how they can improve their performance. Give clear examples and specific tactics they can use to improve their performance. Set goals together. Engage your employees by asking how they can resolve performance issues. Don’t forget to give positive feedback to those doing a good job. Nobody wants to hear about their performance from their manager strictly when it’s negative.

    Listen to employee feedback.

    It’s essential to listen to employee feedback and take action to address their concerns. Conducting employee satisfaction surveys, holding focus groups, and providing opportunities for open communication can help identify improvement areas and demonstrate that the organization values employee input. After all, they are performing the job every day and can give you the best feedback and offer great suggestions for improvements or changes.

    Encourage executive conversations.

    Employees want to hear from executive-level management about what’s happening in the company—the good and the bad. Did you have a really good year? Let your employees know and thank them for their part in that success. Take time to share your goals for your company’s future with your employees and help them understand their role in meeting these goals. If your organization has significant changes, your employees need to hear that from you because adaptations can often cause fear and stress. You need to address these changes and alleviate your employees’ concerns.

    Recognize employee successes.

    Employees want to feel valued and appreciated. Recognizing and rewarding employees for their hard work and contributions can go a long way toward building loyalty and retaining top talent.
    Recognition does not have to be complicated. Let your employees know if they are consistently doing a great job or excelling on a particular project. Send an e-mail, write a letter. Even a high five and “great job!” from you can mean a lot. Be specific when you express your recognition. This can be incredibly influential when it comes from top management.

    Offer autonomy.

    Employees want direction from their manager but also value a certain degree of autonomy in their jobs. Employees need a clear job description, and their manager must clearly express what their expectations are from an employee for their overall performance and day-to-day responsibilities. With this clarity, employees can direct their workflow and performance without being micromanaged. Employees can take ownership of their roles and responsibility for their performance.

    Facilitate teamwork.

    People spend most of their time at work and with their fellow employees. It’s crucial to build strong, functional, well-led teams. Successful teams communicate, are respectful of other team members, and are focused and committed to their organization and to achieving goals. Good teamwork facilitates positive relationships with coworkers. It helps bond them together as they work to achieve common goals—an important factor in retaining employees.

    Offer work-life balance.

    Work-life balance is becoming increasingly important to employees, particularly younger generations. Offering flexible work arrangements, such as telecommuting and flexible schedules, can help to attract and retain employees who value work-life balance.

    Investing In Your Employees

    Your employees are the backbone of your company. When your employees are happy, it shows in their performance—and it will be one the most important factors in retaining your customers and increasing the overall profitability of your organization. Investing in employee retention strategies can create a workplace in which employees want to stay, leading to increased innovation, growth, and success.

    Trust GMS as your HR partner for the complete employee lifecycle – from hire to retirement. By outsourcing your recruiting efforts to us, our highly trained recruiters will deliver the candidates you deserve, especially for those hard-to-fill positions. Once you’ve found the perfect match and an offer has been accepted, our paperless onboarding, benefits enrollment, and learning management system will help your new hire get acclimated to your organization and their new career.

    As their career continues and they grow with your company, we’ll be there to assist with employee management and development – from handbooks to employee surveys and even performance management.

    Make no mistake, investing in your employees is not a one-and-done ordeal; it’s an ongoing effort that has a direct correlation with your attrition. We’re here for you every step of the way – contact us today to learn more about what we can do for you and your business.

  • When employees are set up for success, companies enjoy the benefits. Happy, motivated employees are likely to be more productive and satisfied with their jobs, reducing turnover. While there are many options you, as an employer, can provide to create a great place to work, there are factors outside of the workplace that have a direct impact on the overall well-being of your employees.

    An employee assistance program (EAP) is one tool employers can use to help stressed-out employees and improve morale and work performance. Let’s break down what an EAP does, how it benefits both employers and employees, and how your company can get the most out of its program.

    What Is An Employee Assistance Program?

    The Society for Human Resource Management (SHRM) defines an EAP as “a work-based intervention program designed to assist employees in resolving personal problems that may be adversely affecting the employee’s performance.” These intervention programs are designed to give employees support for private matters until they can find a more permanent solution.

    Employee assistance programs are a great way for businesses to improve their overall employee productivity and health. The programs provide employees with access to confidential counseling and support, as well as referral services for mental health care, substance abuse treatment, and other services. An ideal EAP should meet the criteria listed below:

    • Confidential – Given the personal nature of employee issues, EAPs should allow employees to seek support privately and anonymously.
    • Accessible – Services provided by an EAP should be accessible online and easy for employees to contact during and outside of work hours.
    • Available – Services should be readily available to all employees and immediate family members who are eligible for the program.
    • Short-term – EAPs aren’t meant to be permanent sources of aid. The services an EAP provides are designed to give employees access to key services and short-term help until they can find a good, long-term solution.

    The exact form of support can differ greatly from program to program; however the goal is the same – to give employees the support they need to address factors that impact their mental and emotional health.

    Examples Of Employee Assistance Programs

    The average EAP provides a wide range of services aimed at providing critical support for your workforce, but the exact offering can vary from program to program. It’s most common for EAPs to address a number of personal issues, including the following concerns:

    • Relationship challenges
    • Grief over the loss of a loved one
    • Financial or legal problems
    • Stress management
    • Mental health issues, including anxiety, depression, and PTSD
    • Substance abuse
    • Workplace or domestic violence
    • Crisis management

    EAPs offer confidential, professional counseling and support to employees, free of charge. Some can even be accessed via phone, text, or email 24 hours a day, 365 days a year.

    While EAPs were traditionally developed to support personal issues, modern programs have expanded to include further services. Employers have found that several additional stressors impact work-life balance and an employee’s future plans. As the workplace evolves, modern EAPs have also included the following forms of support:

    • Childcare
    • Eldercare
    • Adoption specialists 
    • Retirement planning
    • Living wills
    • Pet care
    • Academic and tutor resources
    • Personal and professional development

    Benefits Of Employee Assistance Programs

    More stress means more problems for both employees and employers. According to Gallup’s 2022 State of the Global Workforce Report, a whopping 57% of U.S. employees reported feeling stress on a daily basis. By alleviating that stress, EAPs can help businesses enjoy the following benefits:

    • Reduced absenteeism 
    • Increased productivity 
    • Better morale
    • Improved retention
    • Stronger applicant pools

    Reduced absenteeism

    Outside stressors can often lead to employees taking additional sick days or simply calling off to attend to personal issues. EAPs give employees the means to alleviate those stresses. A study by Federal Occupational Health (FOH) found that companies that offer EAPs saw a 69.2% decrease in absenteeism by giving employees access to various means of personal support.

    Increased productivity

    Just because employees are physically at work doesn’t mean that they’re productive. Behavioral health concerns such as stress, anxiety, or depression directly impact how engaged employees are at work. That same FOH study found that employees with access to assistance programs were 22.8% less checked out while on the job and more invested in their work.

    When an employee has an issue that’s causing them to miss work or perform poorly, it can trickle down to affect the entire department’s productivity. Having a program in place that helps individuals deal with these issues before they become a problem is a great way to be proactive.

    Better morale

    Another benefit the FOH found was that EAPs could improve employees’ sense of overall well-being. Studies found that EAPs increased users’ life satisfaction by 24.2% by addressing stressors that caused personal distress. In turn, employee morale is substantially better when employees take advantage of EAP services.

    Improved retention

    Simply put, stress makes good employees leave. EAPs show employees that your business cares about their well-being, making them less likely to suffer burnout or look for a fresh start somewhere else. In addition, EAPs can help prevent employees from being fired by helping them manage personal issues before they negatively impact their work performance.

    Stronger applicant pools

    Assistance programs can also encourage solid talent to join your business. According to SHRM, 76% of employees “Consider mental health benefits to be a critical factor when evaluating new jobs.” An EAP is a clear sign that your business takes employee mental health seriously.

    How To Get An Employee Assistance Program Started

    Getting started can be overwhelming. Here are some tips on how to launch an EAP plan:

    1. Decide what kind of EAP you want. Do you want one that caters specifically to your company’s needs, or do you want a one-size-fits-all program?
    2. Decide on a budget. Your budget will be an important consideration when choosing an EAP. You can calculate how much it will cost per employee by year or month to get a baseline—it might be less than you expect!
    3. Research different EAP providers—they should all have websites where you can read about their services and compare pricing and the benefits offered. Analyze the information from each provider and choose one that best fits the overall needs of your company.

    Another option is to contact your company’s insurance provider and see if they offer an EAP service. For a truly turn-key experience, you can hire a third-party agency to broker an EAP program for your business. It’s important to keep in mind that the size of your business may ultimately determine how many options are available to you.

    Once you have done the heavy lifting of choosing a program and getting an EAP in place for your business, it’s critical to focus on employee communication. It’s important that everyone in your organization, from HR to management, understands their role in the program and how to assist if an employee needs assistance from the program. In addition, it’s crucial that the EAP rollout is well communicated throughout your organization so that each employee understands the value of the program, what is being offered to them, and how to take advantage of this benefit.

    How To Maximize The Value Of Your Employee Assistance Program

    Offering an EAP is one step. Getting employees to use it is another. National studies find that EAP utilization averages just under 10%, but not because the programs are ineffective. SHRM reports a couple of key reasons for the low usage rate:

    • Privacy concerns – Employees either feel uncomfortable sharing personal issues or are afraid that employers will gain access to their personal health information.
    • Lack of promotion – Companies either don’t promote these programs efficiently, or employees aren’t aware of how to access services.

    Even with low participation numbers, employers who offered an EAP typically enjoyed a return on investment of at least $3 for every $1 spent, according to the 2020 Workplace Outcome Suite. Still, there are ways that businesses can encourage better EAP participation and receive even more value from their programs.

    Regularly promote EAP awareness 

    It’s not uncommon for employees to only hear about their EAP once during the onboarding process or when the program launches. It’s best to give employees regular reminders about their EAP and how to access these services. These reminders can come in multiple forms – during annual meetings, email updates, etc. Regardless of how you send the message, multiple reminders will only increase the odds that employees will utilize these services.

    Stress your commitment to privacy 

    It’s not always easy for individuals to admit they need help. That said, it’s essential to communicate that employees can privately access services online or on the phone around the clock.

    In addition, employees should understand that their interactions with these services are completely private and are not shared with the employer or others within the company. By stressing the private nature of an EAP, employees are more likely to explore these services on their own terms.

    Work with HR advocates

    It’s not always easy to manage the various aspects of benefits administration by yourself. Fortunately, you don’t have to promote and manage your EAP alone. The right EAP provider can help you maximize the effectiveness of your program.

    GMS partners with businesses to offer critical assistance and educate employees about how to best utilize these services. We help employers deliver a quality benefits package without having to spend the time to administer these benefits by themselves, including group health insurance, assistance programs, and more.

    Ready to enhance your employee benefits package? Contact us now about how GMS can help you save time and money through expert benefits administration.

  • Employees are the backbone of every company, making employee retention vital. Business Insider called 2021 the “year of the quit.” In October of 2021 alone, 4.2 million people left their jobs in a mass workplace exodus known as the Great Resignation. Even now, the latest employee turnover statistics find that one-third of employees quit after six months of being on the job.

    Employee retention is about not only keeping employees happy and engaged but also setting your business up for long-term success. Let’s examine why turnover happens, how much it can cost a business, and how your business can reduce high employee turnover.

    What Is Employee Turnover And What Causes It?

    Employee turnover is defined as the number or percentage of employees that leave a company on a monthly, quarterly, or annual basis. Employee turnover can be voluntary (the employee chooses to go) or involuntary (you decide to terminate the employee). Regardless of who made the decision, high employee turnover is an indication that employee retention is low. There are various reasons for this, including:

    • Employee burnout
    • Inconsistent expectations set by managers and supervisors
    • Lack of employee appreciation and recognition
    • Lack of professional growth and career advancement
    • Low pay
    • Less comprehensive benefits
    • Poor workplace culture

    What Is The Cost Of Employee Turnover?

    There are many ways that losing an employee can hurt your bottom line. Turnover creates several direct and indirect costs that affect your business, including:

    • Hiring expenses: It costs money and time to advertise for a new position, interview candidates, perform background checks, and hire a candidate.
    • Productivity loss: While a company looks for a new employee, other employees might have to cover that employee’s tasks while taking care of their own, resulting in productivity loss.
    • Training issues: New employees need to be onboarded and trained, and it takes the average company 31.5 hours to train a new hire, which, on average, costs $1,888 for companies with fewer than 500 employees.
    • Lower employee morale: Low employee morale leads to increased absenteeism, costing an organization money and productivity.

    The exact costs caused by turnover can vary from employee to employee. Investopedia reported that it costs a company, on average, $3,500 in turnover costs to replace an employee only making $8 an hour. Their report also shows that it takes up to six months or more for a company to break even on its investment for a new hire.

    Salaried employees who leave cost businesses much more than their hourly counterparts. The Society for Human Resource Management (SHRM) found that turnover costs an average of half to three-quarters of an employee’s salary. For someone making $100,000, that’s a potential loss of $50,000 to $75,000 caused by turnover. Those numbers can range even higher for more specialized or upper management positions. For salaried employees, LinkedIn reported that turnover costs can cost 1.5-2 times their salary.

    A group of coworkers strategizing how to reduce high employee turnover.

    Different Ways Small Businesses Can Reduce High Employee Turnover

    Employees are more likely to stay at a company that they feel meet their needs on multiple levels. The following measures can help you reduce high employee turnover.

    Offer your employees competitive pay

    In 2021, Pew Research Center reported that 63% of employees left their jobs because of low pay. If you find that employees are regularly leaving for more money elsewhere, it may be time to examine your compensation structure to see if you’re competitive with the rest of the industry.

    You may also want to identify specific employees who would be particularly painful to lose. Sometimes paying an employee a few thousand dollars more is a smart way to retain top talent and lessen the chances of losing tens of thousands of dollars in turnover costs.

    Provide your employees with comprehensive benefits packages

    An alternative to paying employees more money is enhancing your benefits package. According to the Association of International Certified Professional Accountants (AICPA), 80% of Americans prefer workplace benefits over extra salary. Policy Advice also reported in 2021 that only 49% of the country’s total population receives group health insurance.

    If your company isn’t a part of this percentage, you’ll be more likely to recruit and retain more employees by offering them group health coverage. If your company is a part of this percentage, you can offer supplemental benefits to give your company an even greater competitive advantage. These benefits include:

    Foster workplace flexibility

    Allowing hybrid or remote work styles gives your business a competitive edge when it comes to retaining talent and recruiting new employees. A 2022 poll conducted by Forbes revealed that 63% of employees would feel more empowered if they had more flexibility. In addition, employees say having the freedom to choose when to come into the office matters as much as traditional benefits such as a 401(k) plan.

    Flexibility can also help eliminate or potentially offset turnover costs in other surprising ways. A Gartner, Inc. CFO survey revealed that 74% of companies planned to permanently shift to remote work after the pandemic ended, partly because of a decrease in operating costs and increased business profits. It Is estimated that business owners can save up to $11,000 a year by switching to remote work because they’ll pay less in overhead and utility costs.

    Make recruiting and retaining employees a priority

    An excellent hiring and onboarding experience can help limit the odds that new hires will leave within their first year. According to the Brandon Hall Group, a well-organized onboarding process improves new hire retention by 82%.

    For this reason, many companies outsource a company to take care of their employee recruiting services. You can partner with a professional employer organization (PEO) to write a quality job description that attracts top talent. Also, recruitment process outsourcing (RPO) reduces recruitment costs, ensures candidate quality, and uses applicant-tracking systems (ATS) to lead to cost savings and an improved recruitment process.

    Care about culture

    Even though it’s almost been a year since the Great Resignation, employees leaving their jobs is still trending. A 2022 survey from Flex jobs revealed that 62% of people leave their jobs because of company culture issues. Implementing a positive workplace culture includes:

    • Creating employee recognition programs
    • Setting clear and consistent departmental goals
    • Promoting diversity and inclusion
    • Accepting and utilizing your employees’ feedback

    You also want to create a workplace culture that doesn’t lead to employee burnout. Employee burnout leads to more absenteeism, resulting in lower productivity and higher profit loss. Offering your employees ample paid time off (PTO) ensures that they return to work feeling revitalized and refreshed. Ernst & Young reported that for every 10 hours of PTO taken, employee performance ratings improve by 8%. Unsure of how much PTO to offer your employees? Check out our post on How To Create A PTO Policy For Your Business.

    Analyze employee turnover

    If you have high employee turnover, it’s best to analyze why. One way to do so is by implementing employee exit interviews and surveys and looking at the data. Staff feedback about current workplace culture and practices is also helpful and can help identify potential reasons employees are leaving your company.

    Save Time And Money By Reducing High Employee Turnover

    It’s not easy to find good employees, and it’s even harder to replace them. Between turnover costs and the impact of losing good talent, companies must have retention and recruitment strategies in place to protect their bottom line.

    Of course, employing those strategies takes a lot of valuable time. That’s why GMS partners with employers to help you save time and money and reduce high employee turnover. Contact GMS about our benefits administration, recruiting, onboarding, and training services today.

  • As a small business owner, it’s essential to understand how different events affect your bottom line. Sometimes this process is as easy as checking an invoice, but other cases are not quite as clear. This is exactly the issue when it comes to employee separation costs.

    Losing an employee costs you more than just a member of your business. The departure of an employee can cost your business in a variety of ways. Let’s break down the reasons for employee separation, the true costs of employee turnover, and what you can do to prevent talented people from leaving your business.

    The Costs Associated with Employee Turnover

    When an employee leaves your company, it has a number of direct and indirect financial impacts on your business. Unfortunately, you won’t receive an itemized bill that helps you understand the cost and implications of turnover. Instead, you’ll need to recognize the different factors that will impact your business’ bottom line.

    Exact employee turnover costs vary depending on the employee and the nature of your company. However, the Society for Human Resource Management (SHRM) reports that it costs an average of half to three-quarters of an employee’s salary to replace that individual. For an employee who makes $50,000 a year, it could cost your business roughly $25,000 to $37,500 to find, hire, and train that person’s replacement.

    Those estimates can balloon even higher depending on the position. It can cost more than an entire year’s salary to replace technical or supervisor positions. Meanwhile, turnover for hourly employees can quickly add up as well, with an average turnover cost of $1,500 to replace each person.

    Of course, estimates are only one part of the employee turnover puzzle. It’s also important to understand exactly why those costs are as high as they are. Here are some of the factors that go into calculating the cost of employee turnover:

    • Recruiting and hiring costs
    • Onboarding expenses
    • Lost productivity
    • Reduced employee engagement
    • Increased risk of errors

    Recruiting and hiring costs

    Any time you must hire a new employee, it’s going to take some time and money to do so. To start, you’ll need advertise your open positions. Some jobs may even call for a recruiter to help you find the right person to fill the position. 

    Recruiting costs don’t stop with that initial search, either. Once you find some qualified candidates, your managers and supervisors will have to take time away from their jobs to interview and vet them. This is especially true for any job searches that last for months. As you may know, time is money, so any extra time spent will add to employee turnover costs.

    There are also a number of other expenses that can add up once you find the right fit for the role. For example, you could have additional fees for background checks, drug screenings, and other pre-employment assessments. These measures are important to ensure that your hire is the right person, but they do add to your overall hiring expenses.  

    Onboarding expenses

    Hiring an employee is just the first step – you will also need to spend time with onboarding and training. This process will incur a number of additional expenses to get your latest team member up to speed. 

    The exact onboarding costs can depend on your business, but employee training is a pretty common expense. The average company spends 31.5 hours training a new hire, which adds up to an average of $1,888 in training and development costs for businesses with fewer than 500 employees. You’ll also need to factor in how much it’ll take to provide that new employee with the tools to do their job, whether that means a computer, certain supplies, or other needs.

    Lost productivity

    The goal of hiring someone is to boost productivity and improve your business operations, but it will take some time to get them up to speed. The person will need to learn the processes that are unique to your business, as well as any new systems they will be required to use. 

    Someone will also need to help them get started and be available to answer their questions along the way. This will result in lost productivity for the rest of the team as well since they’ll need to take time away from their jobs to assist them. 

    Reduced employee engagement

    Anytime someone leaves your company, there can be ramifications for the employees left behind. Other individuals may start to question why that person left and what their future might look like at your firm. Depending on their outlook, they may start looking for another opportunity as well.

    A departing employee can impact your remaining workforce in other ways as well. You may see reduced engagement from any employees who end up having to cover for a temporarily vacant role. This process will not only force them to spread themselves thin, it can also leave them feeling burnt out from the extra hours and impromptu responsibilities. As a result, that transition period could spur further turnover down the road. 

    Increased risk of errors 

    When you lose an employee, you also lose important knowledge and experience.  Following, turnover can easily result in reporting errors or other costly mistakes. Even if you spend extra time to help ensure these errors don’t occur, that simply means you or someone else is spending extra time to address something that your departing employee handled regularly.

    How to Prevent Your Talented Employees from Leaving

    The best way to reduce the cost of employee turnover is to keep your talented employees from leaving in the first place. It’s important to assess the different reasons why high voluntary turnover occurs. 

    There are a variety of reasons why people leave a company. By identifying contributing factors for employee turnover, you can take appropriate measures to reduce avoidable turnover costs. Let’s evaluate a few ways that you can retain top talent, avoid wrong fits, and reduce your employee turnover costs.

    Offer a competitive benefits package

    Losing employees is an expensive process. Offering competitive pay and benefits can help limit the chances that employees try and leave for a small raise or certain work perks.

    It’s important to consider what perks employees truly find valuable in order to attract and retain top talent. It’s not uncommon for employees to value key benefits more highly than their pay, which makes an appealing benefits package a powerful retention tool. Some of the top benefits included:

    • Better health, dental, and vision insurance
    • More flexible hours
    • More vacation time
    • Work-from-home options
    • Paid parental leave

    Improve company culture

    Your company’s culture has a significant impact on employee satisfaction and can determine whether they stay or go. Creating a culture that fosters a positive work environment, encourages work-life balance, and recognizes employees will help you attract and retain top talent. 

    According to research conducted by LinkedIn, 47 percent of employees want to work for a company with a welcoming culture, while 51 percent of professionals seek employment at businesses that promote work-life balance and flexibility. Fortunately, benefits such as work-from-home options and flexible hours offer the dual perk of making your business more attractive and helping employees avoid burnout and other issues. That level of support can make your workplace a space where employees don’t want to leave.

    Recognize employees

    Establishing procedures to recognize employees is also essential to boost engagement and retention. Over 70 percent of companies report that employee recognition had the highest impact on engagement. As such, it’s important to make sure that employees know they’re appreciated.

    Consider implementing a formal recognition program that incorporates ideas like employee spotlights and peer recognition. Recognizing the individuals that work hard to contribute to the success of your business will improve morale and create additional incentives to perform well.

    Monetary prizes aren’t the only options either. Get creative with other ways to reward your employees, like an extra day off or an experience that they can enjoy. Even short conversations expressing your appreciation for an employee’s work can go a long way toward making them feel good about where they work. 

    Provide potential for growth

    One reason why employees leave is because they don’t think there’s a future with their current company. Giving employees the tools they need for career development can help them feel like they can continue to grow at your business.

    Growth can come in many forms – opportunities to advance in the company, stipends for development, etc. Regardless of the form the prospects take, nearly 95 percent of employees would stay with a company longer if they had access to learning opportunities. These efforts can play a key role in limiting employee turnover, so work with your employees to create employee development plans, provide training, and put measures in place to invest in your team.

    Welcome employee feedback

    One of the best ways to understand why people leave your company is to ask for feedback. If you’ve noticed that employee turnover has increased or want to address any issues before someone leaves, talk to your employees about what they value and encourage feedback regarding what you could do better.

    Collecting feedback is not enough though – you need to listen to them and implement their ideas to make them feel valued at your company. Making changes based on thoughtful, serious feedback shows your current workforce that you’re listening. That step along can make a major difference in morale and show your employees that they’re heard.

    When someone does choose to leave, conduct an exit interview to determine why. Use this interview as an opportunity to learn from your mistakes – they will be more likely to share candidly at this point since they are on their way out anyway. This feedback can help you narrow down potential weakness, strengths, and opportunities to improve your company and reduce employee turnover.

    Cut Out Turnover Costs With Employee Retention Strategies

    Losing a talented employee costs your business in a variety of ways. Fortunately, GMS can help you attract and retain top talent and keep your business strong. 

    Our experts can manage key functions like employee training and recruiting and benefits administration to help you find the right employees and keep them on your team. Meanwhile, you can spend that time to focus on growing the business instead of constantly dealing with the hiring process. Contact GMS today about how we can support you and your employees.

  • One of the largest contributors to mental health problems in the workplace is stress. Not only are mental health issues difficult to recognize, we also cannot assume an employee’s stresses from everyday life are checked at the door when they arrive at work every morning.

    Everyday life stresses coupled with the pressures that work brings could be detrimental to both the employee and the business. This can have serious impact on an employee’s overall health and employers must take the appropriate steps to protect both the employees and the business.

    Image of a stressed out employee.

    Stress in the Workplace

    This begs the question, how can stressed out employees affect a business? Several factors combine to impact the business negatively:

    • Poor performance
    • Increased human error
    • Mental lapses
    • Lack of motivation
    • Workplace accidents

    These factors combined could determine the employee’s likelihood to quit or could end up being the reason for their termination. The resulting increase in turnover costs a businesses, and even the economy, a lot of money. 

    Workplace stress, according to Dr. David Posen, “is costing the American economy hundreds of billions of dollars each year in lost productivity and health care expenses.” Beyond the workplace effects, the stress and mental health issues could have serious physical implications on the individual, including: 

    • Heart disease
    • Headaches
    • Depression
    • Anxiety
    • Medication abuse

    What Employers Can Do About Stress

    There are numerous steps employers can take to prevent mental issues from entering the workplace. This process can start with proper management training to promote:

    • Effective communication
    • The setting of achievable goals
    • Adequate lifetime training for employees
    • Teamwork/team first workplace 

    On top of these steps, many companies offer Employee Assistance Programs (EAP) to help make sure their stress is appropriately managed. It’s important to set expectations with each employee and keep these expectations realistic and reasonable to help employees manage their workload and stress levels. Coupled with heavy workloads and daily stresses from everyday life, it is imperative to offer your employees paid time off (PTO) and encourage them to take full advantage of it to help them minimize their stress and maximize their workplace efforts. Lastly, employers can offer their employees a corporate wellness program to help promote the overall physical, mental, and emotional health of their workforce. 

    Partner with a PEO to Limit Workplace Stress

    Workplace stress management is a lot to keep up with, especially while you’re trying to simultaneously run a successful business. 

    A PEO can help your employees stay happy, healthy, and productive while you make sure business is operating smoothly and successfully. GMS offers one-on-one management training to help you with employees’ stress, difficult situations that arise, and several other areas of concern. GMS also partners with a company called ESPYR to provide a completely customizable Employee Assistance Program (EAP) to help promote overall company wellness. Customizable GMS EAP services can include:

    • Legal consultation provided by attorneys
    • Financial consultation 
    • Prenatal program
    • Child care information and referrals 
    • Elder care services
    • Adoption specialists
    • Academic resources 
    • Pet care services 
    • Life event services 
      • Such as birth, death, marriage, divorce, natural disasters, end of life services
    • Special needs services and referrals

    The EAP offered through GMS also provides:

    • Up to four sessions per problem for face-to-face counseling and referral for a full range of personal, family, and work concerns
    • Telephonic and video access to counseling 
    • 24/7 toll-free telephone access to mental health professionals 
    • Multilingual counselors and staff and multilingual interpreter services available in 140 languages

    GMS recognizes that a business’ most important assets are its employees. If business owners can take the appropriate steps to promote the well-being of their employees, it can only help to maximize the company’s potential. Contact GMS today to talk to one of our experts about taking the next step toward managing workplace stress.