Turnover is a costly part of doing business, and that makes improving employee retention critical. Unfortunately, quality workers can be challenging to find, and keeping them can be even more challenging. In this article, Ferrari Energy highlights five things business owners can do to keep their best workers on the job.
The federal government may be able to help you retain your employees. Congress is aware and concerned about small and medium businesses (SMBs) trying to keep qualified employees during these tough economic times. Legislators are so concerned they wrote an $80 billion check in the form of the expanded and extended Employee Retention Credit (ERC). Unfortunately, experts believe that not many companies that qualify for these federal tax benefits are aware of the program.
Writing for Forbes, tax and small business expert Dean Zerbe said, “The ERC is an 80 billion dollar tax program that hundreds of thousands of small and medium businesses and tax-exempt entities — that are good candidates for the ERC — are failing to consider. Business owners and tax-exempt managers are losing out on significant tax benefits — benefits that can help retain jobs and create new jobs.”
Over and above tax relief, here are some proven ideas to help SMBs retain the best available employees.
1. Provide exceptional training: Henry Ford, Founder of Ford Motor Company, is attributed as having said, “The only thing worse than training your employees and having them leave is not training them and having them stay.” There is wisdom in that idea. Your employees, the good ones at least, want to learn and grow. If your company doesn’t provide that opportunity, they will find someplace else that will.
2. Pay good wages: For many businesses, finding the right balance between wages, benefits, and trying to make a profit feels like walking a tight rope. It is essential to consider the cost of employee turnover in that equation. Paying your employees more now may save money in the long run.
3. Provide flex hours: If the coronavirus pandemic has taught us anything, it is that workers value flexibility in their work schedules and location. Additionally, we have learned that many jobs can be done from home without sacrificing the quality of work. Therefore, a flexible schedule or the option to work from home occasionally may be viewed as a valuable benefit that costs the company little, if anything at all.
4. Acknowledge and reward: Study after study reinforces the idea that people quit their bosses, not their company. In many cases, this translates into employees that feel ignored and undervalued by their supervisor. A simple employee acknowledgment and rewards program can make a significant improvement. Look for opportunities to catch your employees doing a great job and let them know you appreciate their best efforts.
5. Hire the right people: Lastly, it is critical to hire the right people in the first place. Because someone has the perfect resume to match the job requirements does not mean they are the best person for your company and its culture. When interviewing prospective employees, give as much weight to how they might fit in your company as you do their ability to perform the work.
As competition for a limited workforce heats up, use these suggestions — and there are many more — to make your company a place workers want to stay.
About Ferrari Energy
Ferrari Energy is a family-owned private oil and gas company focused on mineral and leasehold acquisitions. Founded in Denver, CO by Adam Ferrari with a focus on educating landowners, Ferrari Energy has consistently served the needs of the landowner community in the basins in which it works. Its operation covers several areas throughout Colorado, Wyoming, Utah, and ND. Ferrari Energy has provided oil and gas leases to over 850 homeowners and held multiple lease signing events to accommodate the residents of Broomfield, Colorado.