In business there's one universal truth that's simple to understand: it costs much less to keep a client than to get a new one. A study by Bain & Company showed that a 5% increase in client retention rate can increase profits by 25% to 95%. Not to mention what it costs in marketing, sales, and management to score a new one.
Now, imagine how much less it costs to keep your own employees coming back to work. Estimates say that losing a middle manager could lose your company as much as 100% of their salary.
By retaining talent you can avoid recruiting costs, HR issues, and a strain on your workforce. What's more, you're able to keep your clients happy with no disruption to their goods or services. Having great employee appreciation ideas is essential to retaining your valuable talent.
The bad news? According to a study "almost 40 percent of employees are planning to look for a new job within the next six months." And... "69 percent say they’re already passively looking."
There's no time to waste. If your employees are this important, you should treat them like they are. Here are five easy ways to make sure your employees feel appreciated and valuable.
Nothing is worse for employee morale than failing to promote from within. Imagine providing valued service and then getting passed over for promotion. Now imagine watching outside talent come in and take the job you've been working toward.
Growing your team from the inside will motivate staff to stick with it. They'll know their chance to move up the ladder could be right around the corner. It'll increase your employee loyalty and, if you do it right, developing your team will cost you a lot less than if you relied on external candidates.
Don't think they're ready yet? Get them the tools they need to succeed. All companies have some mandatory training programs. These programs cover a range of topics such as:
But employee appreciation means investing in your workers beyond these basics. You may not be a big enough company to justify your own in-house trainers but, with a little research, I'm sure you can find trainers in your community ready and willing to give your employees the skills they desire.
A great way to make employees feel appreciated is having an open door policy. When they feel free to share their ideas, concerns, or anything else on their minds, something great happens - you, as their manager, become more "in touch" with office goings on and employee morale skyrockets.
It may seem hard to commit the time to having an open door but the productivity you'll gain personally and from your teamwill more than make up for the time spend listening.
Get to know your employees as humans, not just as workers. For some of us this is hard. You may need to take notes to remember each employee's hobby, family situation, favorite food, etc. There's no shame in that. Instead, the real shame would be missing the opportunity to connect.
It's true. A little recognition goes a long way and a it goes even further when it's given from the heart. Make sure that you avoid generic appreciation gifts and awards and give something tailored to the situation. To help you, we've developed a whole set of appreciation coins that you can use to recognize various employee accomplishments and attributes.
However you choose to do it, make sure that you take the time to show deserving employees that you noticed!
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