Back to all resources

Cost-effective ways to retain your staff

When you consider that the average cost of filling a vacancy in the UK is £4,000, it can make more financial sense to try to keep the employees you’ve got than constantly letting them go and replacing them. Read our top tips to keep hold of your most valuable staff.

Like this resource?

Become a member for access to more resources and benefits.

Learn more

When you consider that the average cost of filling a vacancy in the UK is £4,000, it can make more financial sense to try to keep the employees you've got than constantly letting them go and replacing them. Read our top tips to keep hold of your most valuable staff – and the best thing is it often doesn't have to cost you a penny. Engage your staff The best way to retain current employees is to keep them engaged with your company. Make sure you communicate your business plan and let all employees know how the work they do on a daily basis contributes to the success of the company by setting them goals that feed directly into the company's bigger goals. Let them know you're interested Most people have long-term career ambitions that may or may not include your business. Discuss these with your staff and explore career development opportunities that exist within the business. Could they perhaps take on any extra responsibilities? Operate an open door policy Encourage employees to discuss any concerns or problems they may have with senior management. This way you may be able to spot the signs of dissatisfaction early and tackle the reasons behind it before it's too late. Invest in their skills By offering training that is in line with employees' aspirations and the company's objectives, staff will feel like you're investing in their future and are more likely to feel indebted to your business. If you don't have a budget for external training, why not offer it in-house? Consider whether a more experienced member of staff could train up or mentor junior employees. Be flexible If possible – and within reason – try to adapt work around your employees' circumstances. And remember that some employees have a statutory right to time off for dependants and to request flexible working. Don't micromanage This can be hard, especially if the business is your ‘baby', but you need to trust your staff and give them to the freedom to do the job you've employed them to do, otherwise you risk making them frustrated in their role. Recognise good work When someone does a good job, letting them know that it hasn't gone unnoticed can do wonders for motivation and encourages similar good work in the future. Have fun A new survey from recruiter Adecco suggests that one of the most important aspects of work for employees is having fun (86% of respondents agreed and 74% said they'd prefer to work somewhere that did foster a fun atmosphere over one where they received better pay). 67% also suggested that a fun, competitive spirit influenced levels of loyalty and commitment to their employer. So, creating a positive atmosphere where enthusiasm is rewarded could be a cost-effective way of improving retention and boosting productivity.

×