Employee Retention Amid Recession

While a small business, seeing red in the recession, might already be shortlisting the dubious employees and making plans accordingly, these are actually the best times to strengthen relationships with employees.

The recession is a time of mounting unemployment, mourning workers, costly training and low profits—a time when employee retention is of critical importance.

Experts say that losing a manager at such a time costs an organization up to 100 percent of his salary. One can imagine what the employers go through when more than a few employees abandon the company.

With small organizations, employees come and learn, but leave for bigger and better organizations. However, there are various ways to counteract this problem and strike a positive chord with the employees.

If the boss is rude and always dictates employees what to do, chances are that employees will leave his organization soon. A study has pointed out that employee leave "managers" of the company and not the company. This is a warning sign to the employers asking them to be careful on how they behave and interact with the employees.

Another thing that every employer should learn is to appreciate his/her employees’ work. Employees will always feel secure with such organizations. And only when the employees feel secure do they give their best to the job. If an employee at any time gets to know that his/her employer is contemplating sacking them, they will not put in the required effort for work.

Another important thing is to communicate properly before one loses critical staff members. Conducting exit interviews is helpful for organizations to know where it lacks which will, in turn, help retain employees in future.

Also, employee brain drain can be prevented if the employees are given considerable opportunities and fair pay, both according to their work. Giving timely appraisals and motivation also helps.

However, monetary benefits are not always important. In times like these, positive measures like appreciation, motivation, building trust etc. are more valuable to win the employee’s loyalty.