Employee performance evaluation is vital to the growth of both the employee and the company. It should be done fairly and objectively so you can identify your best-performing employees. Creating a strong team does not end in the hiring process.
Let us consider the costs of high employee turnover. First, advertising for the vacant position costs a significant amount of money. The interview process is neither free nor easy. Training and onboarding a new employee is not cheap either. Additionally, the team’s overall productivity is affected as it could take a while for the new employee to reach the same level of comfort and expertise as an old employee.
It is best to nurture and retain top employees rather than hire new ones. Here’s how you can do that:
Offer benefits that your employees actually need – An essential benefits package include health insurance, retirement savings plan, and life insurance. The option of telecommuting also seems to have a positive impact. Telecommuters tend to be happier and show more commitment to the company, according to a study published in the Journal of Management Information Systems.
Come up with small perks – Why not provide free food or drinks? Jive Software, for example, has Bacon Thursday and Hot Food Friday while HubSpot gives free Kindle books. These things cost a lot less than if you lose your employees because they feel unappreciated. Even the smallest gestures can make employees stick around.
Promote from within – Frustration can easily happen if your employees don’t see a clear path to career advancement in your company. If this happens, they might stop giving their all-out efforts when doing their tasks and eventually leave the moment they get a better offer.
Promote employee development – Employee training and development should be a continuous initiative and this also has short-term results such as better performance and improved employee engagement. Employee growth does not have to be intellectual only; it should include emotional intelligence. Provide continuous feedback that will help employees learn and do better.
Provide financial awards – Your top employees are doing their best to meet or even exceed performance goals. Providing monetary rewards and stock options will motivate them even more. Never forget annual raises or bonuses for employees who meet specific performance goals.
Employ a human resources director – Human resources professionals know the best practices in recruitment and training, employee performance evaluation, maintaining a good working condition, and managing disputes. They are also more familiar with the latest employment laws. They can come up with programs and perks that you may not think is possible or effective.
Regularly ask for feedback – Companies usually perform exit interviews to find out why employees decided to leave. Not many, however, are conducting “stay” interviews. This is a way to find out why your employees stayed and what you can do to improve your company culture.
Losing a highly trained employee could cost your company up to 213% of their salary, according to the Center for American Progress. So do your best to identify, nurture, and retain employees. Ask for continuous feedback and keep appreciate them regularly.