How to retain employees in a hot job market

08/28/17 at 07:40 AM | Published Under Job Openings by Lon Matejczyk

The U.S. labor market has added tens of millions of jobs over the past few years. But did you know that millions of Americans quit their job every month?

It costs nearly 20 percent of an employee’s annual salary to replace an employee who defects. The costs of reviewing applications, processing candidates, conducting interviews, training and purchasing equipment for new hires aren’t only monetary — they also cost time and lost productivity.

Given the high cost of losing an employee, not to mention today’s low unemployment rate, retention should be a top priority for every organization.

Developing a retention strategy, ironically enough, begins at the exit interview. Those last conversations with an employee moving on are a great way to analyze why employees are leaving. Questions should be related to the employees’ time with the company, what they enjoyed, what they disliked and what prompted their resignation.

So, if you discover that the main catalyst for employee turnover is a lack of upward mobility, think about how to change that. It could mean creating new roles or, if such roles already exist, developing a clear guide for advancing career paths at your organization.

You can also consider creating a survey to gauge employee satisfaction with the company. Include questions about what people like and what they do not like about their job.

There is no hard and fast rule for successful employee retention. Creating a retention strategy for your organization requires you to analyze both your company and its industry.

We know that healthcare and retirement benefits are an important reason to stay with an employer. Flexible schedules, catered lunches, work-from-home days, employee wellness programs, and a greater number of paid company holidays are increasingly coming into play as ways to ensure that employees remain happy and productive, find a good work-life balance, and ultimately stay with the organization for a longer period.

Just remember: whatever environment you create sets the tone for any employee’s tenure with you and immediately helps reinforce that joining your company was a smart choice. Or not.

About the Author

Lon-matejczyk Lon Matejczyk

Lon is the former publisher of the Colorado Springs Business Journal and Colorado Springs Military Newspaper Group.He has served in leadership roles at various newspapers in Iowa, Florida and Wisconsin. Lon received his Bachelor of Arts in Communications from the University of Wisconsin, Eau Claire and attended the Kellogg Graduate School of Management at Northwestern University. Earlier in his career, Lon spent several years as a sea captain and held a 100-ton Coast Guard license. Lon is a former rugby player, referee and administrator and now coaches under 13 year old kids. Lon has served on the boards of numerous community and business organizations including Colorado Springs Leadership Institute, Peak Venture Group, CS Quality of Life Indicators Business Index Committee, Junior Achievement and is a member of The Colorado Thirty Group.  Lon was given the "Making the Pikes Peak region a better place to live work and play" award by the CS Chamber of Commerce, was the VFW Post 1's business citizen of the year.

staffing service industry blog

News and Latest Events 
 
Economist pegs 2017 construction growth at 5 percent

The 2017 Dodge Construction Outlook sees total U.S. construction starts for 2017 advancing 5 percent to $713 billion, following increases of 11 percent in 2015 and an estimated 1 percent this year. Read more arrow

Robust jobs report eases worry over economic growth

The U.S. labor market in July capped off the best two-month stretch of hiring so far this year, a sign of strength for an economy that has been showing mixed growth signals in recent months. Read more arrow

U.S. growth and employment data tell different stories

Measured by traditional yardsticks for growth, like gross domestic product, the American economy definitely looks weak. View it through the prism of hiring and employment, however, and the economy seems surprisingly strong. Read more arrow

Labor Department clarifies employment guidelines 

The Labor Department has waded deeper into the contentious issue of joint employment, seeking to clarify who is accountable for violations of employment laws when two different entities, like a manufacturer and a staffing agency, both have ties to the same worker. Read more arrow

 
Prepare for the great moderation in U.S. job growth

An increasing number of Wall Street economists and those inside the Federal Reserve are concluding that job growth is bound to shift into a lower gear as the aging population drags on the amount of available labor. Read more arrow


Weakness and strength: 7 snapshots of the U.S. job market

Employers added a meager 142,000 jobs in September, the government said Friday. And the average job gain for each of the past three months — 167,000 — is well below the 231,000 average for the previous three. Read more arrow

Housing, construction may be able to improve U.S. jobs picture 

Even though Friday’s lackluster U.S. jobs report proved a disappointment, the growth in construction and housing jobs might be able to pull the U.S. economy through this rough patch. Read more arrow

Kansas employment stats create muddled picture

The data on employment in Topeka, Wichita and Kansas are behaving in puzzling ways, making it unclear whether their employment pictures are getting better or worse, according to an economist at Wichita State University. Read more arrow

NLRB will let more workers bargain with their employer’s employer

The decision could have widespread implications for subcontracting, franchising, and temporary staffing agencies that have become increasingly prevalent in today's "fissured" economy. Read more arrow 

 
Should Americans work more? 

While the average American workweek is already longer than in most high-income countries, the Irish and the South Koreans show it’s possible for an advanced country’s workers to put in more hours than we do. Read more arrow 

Labor Department expected to make millions more eligible for OT

Millions of Americans who work in excess of 40 hours a week will qualify for overtime pay under a proposed Labor Department rule. Read more arrow

 
Nailed it: Construction employment helps fuel economy

April was the best month for construction employment since January 2014, U.S. Labor Department figures showed — and not just for job creation. Unemployment among construction workers fell to its lowest level since 2006. Read more arrow

Despite hiring efforts, veterans face employment obstacles and civilian disconnect

A new report says that vets have trouble finding and keeping jobs and that civilian employers struggle to understand them. Read more arrow

 
Apartment construction a booming business nationwide

According to U.S. Census Bureau figures, apartment vacancies nationwide hit their lowest point in two decades in the last quarter of 2014: 4.8 percent. The low vacancy rate has led to sky high rents and an explosion of apartment construction that so far cannot keep pace with demand. Read more arrow


Trade plan hopes to grow Wichita exports by more than $1 billion

The Wichita-South Central Kansas Regional Export Plan aims to raise Wichita area exports by $1.1 billion over five years. Such a boost in sales would translate into roughly 6,000 more jobs, according to federal estimates. Read more arrow

The worst mistakes job seekers are still making

In today’s job market, applicants have enough challenges without worrying they’ve made a wrong move bad enough to cost them the position. There are all kinds of theories out there about which blunders are the absolute worst. Read more arrow

Companies face new rules on labor practices

President Obama will sign an executive order that could make it harder for companies that violate wage, labor and anti-discrimination laws to win federal contracts. Read more arrow