Employee retention is critical for businesses in every industry. This includes those working in plumbing, HVAC, electrical, and other home services. So, what is employee retention? The term refers to a business’s ability to keep its employees and maintain a low employee turnover rate.
Home service companies sometimes overlook the importance of employee retention. They assume that their workers are satisfied. However, one poll conducted with over 1000 US workers found that 31% have left a job within six months, and 68% have left within three. If you want to gain stability in your business by avoiding a high employee turnover, it may be time to focus on your employee retention plan.
Why Is Employee Retention Important?
Employee retention is crucial to a home service company’s success in a variety of ways. The cost of employee turnover is significant. This is due to the cost of recruiting and training new employees to replace those you’ve lost. The amount you spend will vary depending on the wage and position of that worker. A recent study predicted that every time a business replaces a salaried staff member, they lose the equivalent of 6 to 9 months of that person’s salary.
Of course, the consequences of a high employee turnover rate go beyond monetary losses. Having people regularly quitting, or terminated, lowers morale in the workplace. Studies show that 70% of employees stated that having a friend at work was the primary element to maintaining a happy work life. If you constantly have employees coming in and out, it can be difficult to form those bonds.
How to Reduce Employee Turnover
If you currently have a high employee turnover rate, don’t worry. We have several employee retention ideas that can help increase worker satisfaction and encourage people to remain loyal to your home services business—all at little to no cost to you.
1. Hire the Right Employees
Companies should take great care to hire the right employees from the very beginning. If employees feel ill-equipped to handle the responsibilities that come with their position, they are more likely to quit.
That’s why it’s necessary to state what sort of applicants you’re looking for. During the hiring process, do your due diligence to avoid hiring someone that you feel lacks the proper experience. Hiring an amateur and asking them to take on a complex HVAC installation, for example, is unlikely to yield good results.
YOU MIGHT ALSO LIKE: 5 Hiring Tips for Home Services Providers
2. Offer Feedback and Recognition
It’s important to ensure that every employee feels valued and appreciated. You want your workplace culture to be one of employee recognition and feedback.
There are several ways of creating this culture. You can ask for employee feedback regularly. You can conduct performance reviews with employees one-on-one or offer company awards. Both public and private recognition can be very meaningful.
3. Boost Morale Through Perks
Perks are a great way to separate your business from other home services companies. They can be an effective way of both attracting new hires and keeping your current employees engaged.
Perks don’t have to be expensive or complex to be meaningful. Something as simple as free drinks at the end of a long workday can go a long way. If you don’t have a fridge at your workplace, you could always have a cooler that you refill with soda, energy drinks, and juice.
4. Promote Employee Health
Promoting employee mental and physical health should be a top priority of any business. Expanding your wellness offerings is a great place to start. By making your team feel supported and valued, you’ll encourage and create an environment where they can be productive and motivated.
There are many wellness offerings that can be made available to your employees. These include stress management programs, retirement planning services, and extra breaks to help workers decompress after a difficult installation or repair. You can also have snacks in your break room to help keep everyone healthy, happy, and energized.
5. Improve Your Training Program
If you don’t take the time to properly train an employee, they could become frustrated and may even end up quitting. Identify areas where they need to improve and help them adapt to your workplace by investing in professional development.
6. Create an Exit Survey
Some degree of employee turnover is unavoidable. Use these moments to gain insights from your soon-to-be former employees. We strongly recommend creating an exit survey and asking employees to complete it before they leave.
The survey should encourage them to explain why they’re leaving. It should also give them the chance to offer suggestions for improving your business. You could gain valuable information from these surveys. It’s important to have ongoing conversations with your staff about their level of satisfaction. It can be especially helpful to hear from employees that are already on their way out. They will likely be less reserved and more open with their feedback.
Employee Retention Key Takeaway
Implementing any number of these ideas could have a major impact on your employee turnover rate. Whether you specialize in plumbing, HVAC, or electrical work, maintaining a low turnover rate is critical for your finances and employee morale. Putting in more effort to retain your employees will go a long way in helping you succeed in the long term.