How to reduce attrition in your small business?

Jun 30, 2011

Attrition is a major problem nowadays whether it’s small business, large business or SMBs. Here are some tips to reduce the attrition rate in small businesses:

1. Talk to your employees: Only your employees know what the exact reason for them to leave is. So before this situation actually arises, you need to listen to your employees problems and try to work out a fair enough solution.
2. Offer them perks or incentives when they do a good job: Bonuses and incentives should be given according to an employee’s performance. With that, they get a sense of competition and the work becomes like a game where your employees try to compete. That way, the quality of work improves and it also cuts down attrition.
3. Offer a friendly environment: The environment makes all the difference. People can’t work in an unfriendly environment.
4. Proper Planning: Give tasks to your employees beforehand so that they don’t feel the pressure of the deadlines.
5. Avoid unnecessary protocols: Many people feel tied up because of unnecessary rules like break timings, formal dressing, etc. Have rules if they are absolutely necessary. For God’s sakes do not treat your employees like commodities. By doing that you are actually making them uncomfortable. I have seen many small businesses in loss just for a fact that they have too many rules that an employee can take.
6. Have an exit interview: Take an exit interview to learn about your employee’s problems. That way you can understand what things have made your employees to leave your company.
7. Have team building exercises: To avoid politics, inside the team, arrange for team building weekend getaways every month or within 3 months. That way, it will reduce stress in your employees and also they will understand each other within the team.
8. Have frequent meetings: By doing so you are opening a channel for communication which is utmost necessary.