How SMEs Can Improve Employee Retention

The pandemic has brought on a number of challenges, especially for small businesses around the UK. One of the key issues facing SMEs is staff shortages, so it’s imperative that business owners find ways to retain the talent within their organisations. There are several benefits that come along with doing so. Increasing staff loyalty and employee retention is now a vital part of the success of a company.

If you’re an SME owner looking to improve your employee retention, here are some of our tips:

1. Be flexible

Whether it’s with work schedules, daily tasks or employee leave, try to be as flexible as you can to support your staff. Encourage a healthy work-life balance within your teams and frequently communicate with the team to see where improvements can be made.

2. Proactively check in

Employee wellbeing is crucial to ensuring members of your team continue to feel valued and, in turn, stay productive in the workplace. As owners, proactively taking the time out and checking in with employees about their mental health and welfare makes all the difference.

3. Create a culture of diversity and inclusion

Creating a culture that celebrates diversity will benefit not just employees but also the business as a whole. 

4. Be open to feedback

One of the main reasons employees feel unhappy in the workplace is if they feel their voices are not being heard. As managers and business owners, you must stay open and gather employee feedback. Take their opinions on board and review existing policies to make lasting changes in the workplace. 

5. Reward and Recognise

Running a business can be extremely time-consuming, with several other tasks taking priority. However, to ensure your team is happy and feels recognised, it is essential to reward employees from time to time. By recognising their hard work and celebrating their successes, you can create a culture that positively impacts how employees work, which in turn can increase staff retention. 

6. Offer training and career progression

Offering clear career progression is vital to keep employees motivated to stick within the business. So many individuals leave a company if they feel like there is no room to progress further within it. By offering them a clear path to progress through consistent training and development, you can give your staff a clear sense of what they can achieve within the organisation.

7. Fair and competitive pay and benefits

Lastly, all the above should be backed up by a fair pay and benefits package that’s competitive within the market. It’s also worth noting that the benefits offered should be in line with what your employees deem as important to them. Organising feedback and brainstorming sessions might help you gain insight into what benefits they would prefer, then work towards including some of those within your package.

If you want to run a successful organisation, your employee retention rates are a direct reflection of how employees are treated within it. If you have a high turnover rate, there may be deeper underlying issues such as poor management techniques and low employee morale that should be addressed. Only by encouraging employee communications, building trust and loyalty and taking their feedback on board can you update your current strategies and create a better work environment your employees love!