Tips to Retain Employees at Your Small Business
Small businesses often have only a handful of employees, and when one leaves, it puts a strain on everyone. The owner or manager must worry about being able to provide enough service or product to the customers and the other employees must take up the slack for the person missing in action, often without additional pay.
Many small businesses cannot afford benefits such as health insurance, dental, retirement, paid vacations, paid holidays and sick days. So how do you keep employees when other companies offer these benefits, and often, more pay?
* Benefits: You may not be able to offer all benefits, but try to offer at least a paid one-week vacation each year. You are already paying the employees to work throughout the year, since they may not take a vacation if it’s not paid. Arrange the schedule so that each employee is off during a different month. If you have fewer than six employees, you can have the employees schedule vacations two months apart.
* Keep Lines of Communication Open: Keep an open-door policy. Your employees are more likely to come to you with problems relating to the job if they know you are approachable. If employees can come to you, you know what is going on with the business and can head larger problems off, thus saving money in the long run. An employee who would normally quit because she or he is unhappy may come to you to look for a solution. You may be able to keep the employee if the employee sees that you are looking out for his or her best interest.
* Define Job Duties: Define each employees job duties clearly. If your employees must cover for others occasionally, make sure it is in their job description. If each job’s duties are clearly outlined, there are no surprises for the employee performing that job, which means that the employee does not feel like you are taking advantage of him or her. This also prevents strife between employees, as each one knows what is expected of the other employees.
* Get Employee Ideas: If you are considering making a change to the business, adding a new product or service, or changing job duties, ask the employees for their input. Your employees are the ones that work with customers all day. They are the ones that hear the customers’ complaints and praises. Have a meeting so that everyone can discuss the new idea. Ask employees for ideas, too, to help bring in more customers or to garner more sales of a particular product or service. This makes your employees feel like they have a stake in the business. Further, your employees may come up with ideas or considerations that you haven’t thought of.
* Praise: Give lots of praise where it is deserved. Employees like to know they are appreciated. A word of praise every now and then shows the employee that you appreciate the work he or she is doing, and that the employee is doing the job to your satisfaction. This goes a long way in reducing employee stress.
* Holiday Benefits: Give the employees something during the holidays. A turkey at Thanksgiving shows the employees that you do care about their well-being, and they are not just someone to complete a job. A holiday party is another much appreciated gesture. You can have a holiday party at the shop/office, at a restaurant, or even at your home. Holding a holiday party at your home means that you do not have to splurge on what could turn into an expensive restaurant meal. You need only a couple trays of finger foods and desserts, which can be inexpensive to make, but much appreciated by your employees. Invite special customers to the holiday party. This shows the customers and employees that they are appreciated: the customers for their continued patronage, and the employees for their superior treatment that brings these customers in over and over again.
* Bonuses: If you must ask your employees to take up slack for an employee that left or that you had to fire, give the employees that are doing the extra work a small bonus. An extra $100 in one paycheck, buying lunch for all employees (pizza, wings or something that may be delivered) or having a dessert party in the afternoon are good, inexpensive ways to say, ¡§Thank you¡¨ and to let your employees know they are appreciated.
* Birthdays: When an employee has a birthday, hold a birthday party. You can either buy a cake in most any grocery store, or, if you are talented in the kitchen, you can make a cake. It’s a small token, but it shows the employees that you think of them, and it’s something to break up the day.
* Year-End Bonus: If you like to give year-end bonuses, put money aside throughout the year, so you have it. Give the bonus to the employee near the beginning of December, so that the employee has a little extra money for whichever holiday she or he celebrates. Consider giving the employees one or two paid holidays per year if you don’t normally provide paid holidays. You don’t have to pay for the entire time off, say for Thanksgiving or Christmas, but paying them for one day helps. This is also something you can put away for throughout the year.
With a little planning, you can effectively give your employees reasons to stay with you, instead of leaving for a better paying job or a job with benefits. Employees like getting attention, especially if you verbally express your appreciation. Small businesses often have money problems during certain times of the year, but that doesn’t have to stop you from showing employee appreciation, and employee appreciation doesn’t have to be expensive.












