Invoice Bazaar Blog

How can small business owners retain talented employees?

By Invoice Bazaar | May 20, 2022

Employee engagement and retention have lately become vital concerns for small businesses worldwide. In their 2021 Work Trend Index, Microsoft observed that leaders are out of touch with employees and need a wake-up call. About 41% of workers globally are thinking about handing in their resignation, and it’s not only the need to earn more that drives them to think of leaving. They tend to feel exhausted, unappreciated, disengaged, or disconnected from the work, and your job is to address such issues if you want to stop them from leaving.

Trying to create a universal comfort zone for employee retention is unrealistic. First, you need to understand job roles and then create specific comfort zones and setups for talented employees, which will motivate them to contribute and also prevent them from leaving. Not every employee has to be a leader, nor does each one need to be an innovative genius. Hence, the priorities of retention strategy should differ accordingly.

The list of causes that can prompt an employee to leave an organization can be quite long. Fortunately, just sticking to a few principles in office administration and governance can pre-empt most of these. They include transparency, fair distribution of responsibility, protection of those with poor social skills, ensuring work-life balance with opportunities like work-from-home, praise in public and criticism in private, listening to the employees with genuine concern, and helping them out.

Meanwhile, as a business owner, you should actively promote a culture of fairness and respect, and don’t forget to pay as much as you can, which can convince your employees that you respect and value their services. Furthermore, some of the well-established to-do rules for employee retention include setting clear work goals, performing fair assessments, avoiding micromanagement, allowing fun, keeping employees informed, and devising strategies to keep them engaged with intellectual challenges.

Directly and publicly appreciating employees for their contribution has always been recognized as a big part of the retention strategy. Another strategy is to create involvement with company work by seeking inputs and opinions and recognizing their abilities. Constructive and regular feedback is also essential as it can establish that you care about the personal issues of your employees and can be counted on as a support. Also, you need to have a clear and open channel of communication with each employee. If employees feel thwarted and stifled by mid-level bosses and have no confidential and easy way to reach you directly, that can work against employee retention principles.