For SaaS companies, understanding how to utilize effective employee retention strategies to reduce employee turnover and retain key employees is equally as important as understanding how to reduce customer churn and retain large clients. Acquiring a new customer is on average five times as expensive as it is to retain an existing customer, and similarly, acquiring and training new employees is significantly more expensive than it is to retain existing employees, especially those with key roles within the company.
After investing time, effort, and money into seeking out and onboarding your new hires, it’s important that they don’t leave you for the competition. In this article, we discuss six effective employee retention strategies to reduce employee turnover within your company.
How to reduce employee turnover
There’s no singular way to ensure your employees stick around, which is why learning a variety of effective employee retention strategies is the first logical step for any company exploring how to reduce employee turnover and retain its key members in the long term.
When it comes to taking full advantage of the most effective employee retention strategies, Josh Sweeney, Founder of EpicCulture states:
“I think if you know what motivates them and are able to act on that knowledge, you have the ability to solve many downstream issues.”
A recent study showed that the average employee turnover in the United States alone was at a record high of 19.3%. In dollar terms, this is something that companies need to think seriously about so they can avoid the losses associated with a high turnover rate.
6 effective employee retention strategies
In order for employee retention strategies to be effective, you not only need to understand what causes employees to leave, but more importantly you need the ability to critically analyze your own company, identify potential areas of weakness, and the willingness to proactively strengthen those areas.
Below are six effective employee retention strategies you need to consider as you explore how to reduce employee turnover and retain key employees within your company. Use these six employee retention strategies to evaluate the current state of your company and consider what specific actions you can take in each of these areas to start reducing employee turnover.
1. Hire the right employees
Employee retention begins from the moment you say “You’re hired!”
You should have a thorough hiring process for screening and interviewing new candidates.
This ensures your prospective employees understand your company goals, team mentality, culture, and expectations. It also gives them an opportunity to meet other team members and to internalize their thoughts on points such as:
Can they see themselves fitting into your existing team?
Can they see themselves contributing to and helping to grow your business?
Will they feel heard and valued in your company?
Do their core values align with yours?
Do they understand the importance their role will have in your business?
“Retention is about cultivat