Member Article

Why is Employee Retention Important for Startups?

Startups always strive to acquire top talent in order to gain an edge in the market. They endorse forward-thinking business culture and practices, but in the current economic climate, they struggle to keep up the pace with the corporate giants. Operating on a shoestring budget really complicates things, albeit for more than one reason, employee retention must not end up with a short end of the stick. This is often an aspect which makes or breaks overall market performance and success.

A strategic approach

Motivating employees is considered to be a fine art by many leaders and managers. Employees tend to keep their eyes and ears open to new career opportunities, and there are plenty of them in the market. So, you have to uncover what it is that separates your organization from the rest. Now, there is no need to fret because retention strategies do not require you to break the bank.

Namely, there are many cost-effective ways to see immediate results, and they demand agile, positive action, not a fat bank account. On the other hand, replacing employees is a hurdle which can prove to be quite expensive and time-consuming.

The first thing to note is that effective retention must not be an afterthought, as it calls for some strategic planning. Think about the core values you want to promote, and keep in mind that the retention strategies start at the top, with founders, owners and managers leading by example. In this day and age, what workers crave for are transparency and collaboration.

Therefore, a startup must figure out policies, practices, and incentives that translate these concepts into reality. One good example is employee training and development programs: They call for an investment, but significantly decrease turnover and motivation issues.

Style and substance

A management style matters a great deal. It should be fair and balanced, promoting open commutation with everyone. This cultivates a horizontal business culture of cooperation and innovation, and gives birth to a specific ambiance where people are inspired to give their best, not just survive another day filled with tedious obligations.

Thus, learn to appreciate constructive feedback, stay open to suggestions, and demonstrate that you value this kind of contributions. Employ HR software platforms if you do not want to do things the old-fashioned way. But, do not let it end there. Go an extra mile with concrete incentives like Christmas gift cards, paid vacations, office parties, free lunches, etc.

At last, remember that rigid procedures and rules help leaders run a tight ship, but also drive the talent away. A young professional belonging to the ambitious and progressive Generation Y will not waste his months and years working in a sterile office with a pushy boss constantly looming over.

Everyone should feel like a part of something bigger. You might not be able to compete with larger enterprises in terms of financial resources, but what you can offer is a chance to achieve a better life/work balance. Modern communication technology allows telecommuting and remote work: Let it be a possibility to escape dreaded 9-5 lifestyle and build a meaningful career.

Rise and thrive

A startup must not fail to harness the power of motivated, content workforce. This is a strategic resource which helps you get the operations off the ground and eventually flourish in the competitive landscape. And if you think retention is expensive, just consider the costs of replacing discontent workers. So, foster a corporate culture which recognizes achievement and encourages cooperation and communication. Think beyond monetary rewards and establish a creative, stimulating environment for everyone to thrive.

This was posted in Bdaily's Members' News section by Marcus Jensen .