Employee retention is a high-stakes challenge that business leaders face today. That’s especially true when hiring lots of new people.

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After investing time, money and energy to hire new employees, “most companies see those employees leave before they’ve meaningfully contributed to the business,” said Joey Coleman, a retention consultant.

Coleman examined the employee retention problem by doing case studies of over 50 organizations. This led to him to write, “Never Lose An Employee Again: The Simple Path to Remarkable Retention.”

The cost of replacing a departing employee can be between 100% to 300% of their annual salary. Minimizing such turnover improves the bottom line and saves time.

Recruit Properly For Effective Employee Retention

Somewhere between 20% to 70% of new hires will quit in the first 100 days on the job, Coleman reports. Even on the low end, that is costly.

To achieve high employee retention, hire people who want to work for your company in the first place. And the initial step in that process is to scrutinize your existing job listings, Coleman recommends.

Do your job listings share the benefits that a perspective employee will receive from working as part of your team? This is beyond stated salary and benefits. It’s also about “what they will receive professionally and personally from being part of your organization,” Coleman said.

Focus on their needs, not just yours.

Keep Energy And Enthusiasm High In The Early Phase

Communication with new hires between their offer acceptance and their first day on the job “should build upon the excitement the employee felt when receiving the job offer,” Coleman said.

He’s found in most organizations there is little communication with a new hire during this time period. “This is a missed opportunity that companies can’t afford to squander,” he said.

It’s a given new hires are going to have to fill out some paperwork and learn policies and procedures prior to their first day of work. But don’t let that be the extent of your contact.

Utilize six key communication methods, Coleman writes: “In person, email, mail, phone, videos and gifts that … create a comprehensive and compelling onboarding experience.”

“Reaffirm the new hire’s choice and get them excited about the new role and position they’re about to take,” he said. “Strive to keep emotions high.”

Make Day One Memorable To Increase Employee Retention

Coleman reports 74% of workers say their experience on the first day will affect their decision about whether or not to stay for more than a month.

Don’t let an employee’s first day be filled only with tales of endless paperwork and boring training videos. Rather, strive to give them a memorable first day. For example, connect new employees to their co-workers to build friendships and connections. Strive to help new employees feel warmly welcomed on their first day.

You could have a team a lunch on their first day or a happy hour. Or introduce new employees to a high-ranking executive or two to welcome them aboard.

Train Managers On Employee Engagement

Seventy percent of employee’s experience at work is impacted by their direct manager, Gallup reports.

Don’t take it for granted that your managers know how to productively engage with employees, said Logan Mallory, vice president of marketing for Motivosity, an employee engagement and recognition software company.

“Plenty of leaders were promoted because they had the right relationships or were the best individual contributor — neither of which indicates a strong ability to lead,” Mallory said.

To have a meaningful impact, “help your managers develop the right habits,” he said. “Coach your coaches.”

Regularly Mentor To Increase Employee Retention

There are crucial moments when a manager should engage with their team members, Mallory said. This includes onboarding, annual reviews and when performance isn’t happening as expected.

But instead of just focusing on those major milestones and situations, “the best leaders will meet with their employees consistently,” he said. “This could be quarterly coaching sessions or weekly or biweekly one-on-ones.

“Today’s (new) employees will be dissatisfied if they only get to meet with their manager for feedback once a year,” Mallory said. “They want someone to coach them frequently so they can progress. Employees don’t want to be managed — they want to be mentored.”

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