Employee Retention
It’s no secret that the ability to attract and retain high quality employees is a critical success factor for any business. Studies show that the cost of replacing an employee can be up to 150 per cent of annual salary for hourly employees. This takes into account direct costs such as replacement and training, as well as costs associated with lower productivity and loss of expertise.
What can companies do to avoid these costs and retain their best and brightest? Razor Suleman, CEO of
I Love Rewards, an incentive marketing firm that builds online employee reward and recognition programs, has five steps that help companies recruit, retain and inspire employees. His company, I Love Rewards, was named one of Canada’s top employers for 2007 and 2008 and currently holds a 94 per cent retention rate.
1. Build a Great Corporate Culture
Every organization has a corporate culture, whether they actively participate in creating it or not. “Companies need to develop a blueprint for what they want their workplace to look like and empower employees to contribute to the process,” says Razor Suleman, CEO, I Love Rewards. “Once employees feel that they are part of the big picture, they will be become fully engaged in the business.”
Some of the initiatives I Love Rewards has implemented include First Date Dress Code – a fresh take on business casual; TTP (To The Point) – a daily all-staff meeting that addresses possible red flag issues and ensures that all employees are aligned to the company’s goals; and First Round Friday – a Friday social event in which the “first round” is on the company.
2. Offer Rewards and Recognition
Competitive salary is a big draw for new employees, but successful companies know they need to offer something extra in order to keep their best employees. A growing number of companies are getting an edge on retaining their employees by offering rewards and recognition programs. “Recognition at work gives individuals the extra value they are looking for in their careers,” says Razor Suleman. “This translates into increased productivity by people who feel their work is being noticed and appreciated.”
The proof is in the numbers. A Gallup poll showed that people who do not receive praise or recognition at work are three times more likely to quit than those who do receive praise and recognition.
3. Show Potential For Career Advancement
Employees want to know that what they are doing now will get them to the next level in their career. “Companies that promote from within have a built-in tool to boost employee motivation, satisfying their competitive spirit and increasing overall company productivity,” says Razor Suleman. I Love Rewards works with employees to develop a career roadmap that sets forth the mutual expectations and performance levels that need to be met in order to attain a promotion.
4. Create Flexible Schedules
The nine to five work week is fast becoming a thing of the past. Top performing employees often put in more than the required time so offering a flexible schedule to maintain a good work/life balance is crucial.
I Love Rewards offers four weeks vacation to all employees as a way to pay it forward and give each employee some much deserved time off. In return, it is expected that when the employee is in the office, he or she is working efficiently and effectively. Not surprisingly, the four week vacation was named number two on the Top 100 Reasons to Work at
I Love Rewards.
5. Provide Training Opportunities
Along with providing career advancement opportunities, companies need to offer leadership training opportunities and encourage employees to explore and develop new skills. “Employers that have an interest in the advancement of their employees both personally and professionally will have an engaged and dedicated workforce, and a better company,” says Razor Suleman.
Razor and his team established I Love Rewards vision committees, in which employees can spend 20 percent of their time on activities that are not directly related to their defined jobs. Examples include anything from organizing social responsibility opportunities to experimenting with search engine marketing initiatives. These committees are a way to promote continuous learning and strengthen employee loyalty and commitment.
For more information on I Love Rewards, please visit www.iloverewards.com
2600 John Street, Unit 207, Markham, ON L3R 3W3 T: 905.475.5222 F: 905.475.6369
