7 Tips for Startup Employee Retention
November 6, 2010
As the job market begins to thaw, it is especially important for expansion stage companies to remain focused on startup employee retention strategies to help prevent their valuable employees from jumping ship. I came across an article today on Entrepreneur.com which discusses Seven Ways to Retain Top Employees, and found the advice extremely helpful to anyone who is involved in startup recruitment and retention.
According to the article, seven tips for startup employee retention are:
1. Revisit old promises. As the economic recovery takes hold, make sure you revisit and address any benefit cuts or salary freezes which were agreed upon due to economic conditions.
2. Take action. Address your employees’ complaints, and if they are asking for additional responsibilities, involve them in new projects. Employees who feel they are part of a team and their voice matters are more inclined to feel satisfied at work.
3. Have fun. Plan group activities outside of the office, even just once a month, to help encourage team bonding and employee morale.
4. Keep talking. Continue to keep employees up to date regarding the status of the company and its prospects. This can go a long way in easing any of your employee’s fears about the future.
5. Be transparent. Make sure to communicate both the company’s good and bad news without “sugarcoating” the bad news. Speak to each of your employees individually and tell them how they fit into the company’s plans for growth.
6. Address inequities. Rewarding employees based on performance is a good idea, but if there are pay inequities in your company, your employees are usually aware of them. Now is a good time to address any pay inequities with raises where the inequities exist.
7. Be realistic. As the economy improves, some degree of attrition may be inevitable, but if you show your employees they are important to your company’s success, and are open and honest with them regarding what is happening at your company and about their future there, they are more likely to stick with you.