How to Reduce Employee Turnover in Your SME

Customers are important to your small and medium enterprise since they determine how far your company is able to go. However, employees are equally important and will determine the kind of image you will have in the industry of your company. They are the ones responsible for customer engagement and go out to hunt new ones. If you keep losing your employees to competition, you will lose customers equally.

Companies headhunt potential employees that would bring value to the company. They anticipate that having good staff in your company will bring in loyal customers. Therefore, if your turnover rate is high, you will lose a chunk of your customer base. If this happens, your business will stagnate and in turn, make you bankrupt.

This will also affect your image because customers will not trust you to handle their affairs. They will always ask if you can’t treat your employees right, how will they expect you to care about their welfare? In this article, we’ll share essential tips that you can adapt for your company to reduce the employee turnover rate.

Compensate well

Companies may have different budgets, but your employees should always be paid fairly and on time. After all, they are the ones helping you run the business otherwise you would have no employees, which would be disastrous. Just like you, they too have financial obligations, and they require the money. If you underpay them, they will look for other employment opportunities.

Create a conducive environment

Employees spend three-quarters of their time at work. The kind of life they have in the office will determine the quality of their life. No one likes a nagging employer who is always micro-managing them and cannot trust them to work freely. Allow your employees the space to work without making them feel suffocated. They will feel that you trust them and will be motivated to work well.

Reward your best employees

You must have targets for your business and a clear roadmap on how to achieve them. What happens when these targets are achieved and surpassed? Encourage your employees by extending a gesture of gratitude through corporate gifting. Show them you care and recognise the effort they put in to turn your SME into a profitable venture. You can gift without incurring too many expenses with various budget corporate gifts or touch their hearts with personalised gifts in Singapore.

Hire the right people

You may wish to have the best talent in the market that your budget can afford. But is that all you need. When your Human Resource department conducts interviews, they should go beyond the surface. Let them find out if the candidate loves working in such an environment and if they are prepared to grow with you. Finding the right employees who have a passion for their jobs and are happy with their environment is a recipe for success in a company. Therefore, hire people with the right values and can fit into your company’s culture.

Learn how to work with people

The way you relate with other people, whether employees or customers will determine the kind of relationship you will have. Interpersonal relationships are important especially in an SME as you often interact with all your employees. Find out how your employees are on an individual level such as their motivations and career goals, and work together with them to achieve mutual benefit.

Building a lasting business requires teamwork and a dedicated team. The only way to achieve such is through staff retention. The strategies above will help you reduce staff turnover and boost your corporate image.