In the course of normal business operations, it could be necessary to take out a small business loan to help cover the costs of departing employees. Not only does turnover affect how productive your company can be, but it also impacts other employees. With a reduced staff, existing workers will have to cover more shifts, work longer hours and do more on a daily basis if employees aren’t replaced in a timely manner.
But it’s not just a matter of expediency, as it takes an even greater amount of time and money to hire and adequately train new workers. And for small businesses, the working capital to do so isn’t always readily on hand. That’s why it’s important that business owners are well-equipped to effectively handle employee turnover.
Here are six tips to aid in this endeavor:
- Budget in advance
In many cases, you never know when an employee may up and leave. This is precisely the reason you should budget accordingly. If one or more workers leave within a small time frame, your business could be put at serious risk of falling behind competitors. Having enough cash on hand to immediately identify and onboard new workers is key to mitigating the damaging impact of employee turnover.
- Cross-train employees
As both a short- and long-term strategy, cross-training employees to work in a number of different roles and departments can help reduce the immediate effect of turnover. Having workers who can fill in at a moment’s notice keeps operations running smoothly and also creates more proficient employees. This approach will work to combat future risks associated with turnover as well.
- Recruit and pay appropriately
The turnover problem may be rooted in your company’s reluctance to go the extra mile in hiring the right workers in the first place. Likewise, if your firm’s wage threshold is much lower than competitors’, you may be unnecessarily pushing good hires away. Find time to recruit new workers and better manage the pay scale to create appropriate benefits to working for your business.
- Focus on items other than wages
It’s not always a matter of dollar signs. Many times, workers may not have felt at home while working for you, or perhaps they didn’t receive the proper support from management they were expecting. If workers aren’t happy, regardless of pay, then they will likely leave. Include more flexibility with scheduling options and create company wide perks like bonuses and small benefits. Also, fostering greater engagement and morale can help keep satisfaction and productivity rates high, thus lessening the likelihood of turnover.
- Create career paths
If it’s not clear where an employee fits in your company’s future plans, they may feel pressure to find something more secure and profitable. Nobody wants to remain in the same position for a long period of time with no hope of advancement. Create a framework for which employees and managers can openly discuss promotion and career opportunities while also carving out new roles for workers to take on. If employees see you are being active in promoting their futures, they are more likely to stick around.
- Encourage feedback
The only way to know why employees are leaving is to speak with them directly. You should utilize greater communication on a daily basis, prior to workers departing, to try and prevent these instances. By addressing concerns and frustrations, you can handle these issues immediately and ensure employees that you hear their demands and are actively working to right any wrongs. This can go a long way to preventing worker attrition.
For more information on how you can make your small business successful, contact National Funding to apply today.