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4 Tips for Improving Small Business Employee Retention

Written by Tiffany Bellah

Boosting employee retention is a common goal for small businesses. As a small business owner, improving your employee retention fosters a more stable working environment and will also help you avoid replacement costs. Research has shown that replacing an employee can cost as much as 33% of that employee’s annual salary. 

To grow your business for the long term, focus on increasing employee engagement to encourage employees to stick around. Whether you’re running a community dance studio, car wash, or bistro, these four tips will help you improve employee retention: 

1. Make expectations clear during the hiring process. 

Candidates should know exactly what the job will entail during the hiring process so they can decide whether they’d be the right fit for the role. Failing to be transparent during the hiring process will only lead to dissatisfied employees. Remember that they’re interviewing you just as much as you’re interviewing them.

As you promote your open roles, clearly list all employee responsibilities and expectations. For instance, if you’re marketing an open position at your dance studio, let candidates know whether they’ll be expected to work on the weekends when dance competitions take place. 

When you provide accurate, thorough information to potential candidates, they’ll be able to assess whether the position is right for them and if they envision themselves working with you long-term. 

2. Offer growth opportunities. 

Employees like to feel like they’re growing and being challenged in their roles. According to a report from LinkedIn Learning, 94% of employees would stay longer at a company that invested in their careers. 

Offer additional professional development opportunities like: 
1. One-on-one training and coaching
2. Leadership opportunities
3. Continuing education and certifications

By showing employees that you’re invested in their growth, you can earn their respect and help them feel more engaged in their roles. 

3. Adopt a well-rounded view of employee compensation. 

Current job seekers don’t just want to hear about the potential salary your company offers. They want to know that they’re joining a business that cares about creating a positive environment and respects work-life balance. 

RealHRSolutions recommends taking a “total rewards” view of employee compensation. That means taking a holistic compensation approach that involves more than employee salaries and bonuses. Seek to offer attractive benefits like work-life flexibility, generous paid time off, and a positive, encouraging workplace culture. 

4. Understand why employees leave. 

Determining what causes employees to leave your business is a crucial part of improving the job experience for current and new employees. 

Ask employees to fill out exit surveys when they leave your company. Include questions such as:
1. (If the employee is starting a new job) Why did you begin looking for a new job?
2. Did you feel like you had adequate training to prepare you for the role?
3. What could we have done differently to improve your experience at the company?
4. What were your favorite and least favorite aspects of your position? 
5. Did you feel properly recognized and rewarded for your accomplishments?
6. How was your relationship with your manager? 

These surveys will help you identify the aspects of your business you should focus on improving.

Some amount of employee turnover is natural in every business. But you can prevent your natural turnover rate from devolving into chaos by implementing an employee engagement strategy that reduces burnout and turnover. Start with these four tips to foster a more sustainable work environment. 

ABOUT THE AUTHOR:

Tiffany Bellah

Tiffany has been involved in the dance world at many levels – as a dancer, a dance mom, a studio manager, a virtual assistant to studio owners and now as the Customer Service Manager for DanceStudio-Pro. She is the mother of 4 and lives in Southern California where she enjoys working remotely to support the users of the World’s Best Dance Studio Software. 

A decade ago, when her girls wanted to dance competitively, she went to the studio owner to offer her skills in administration and knack for setting up and managing apps to make that Studio Owner’s life easier. 

After researching all the options she discovered DSP and became an expert user – fast forward to the present, she has been with the company for a year and a half and she is thrilled to be a part of the constant improvements in technology that help us all connect around the art of dance.