Small, micro and medium-sized companies are the backbone of Indian economy. They provide employment at the grassroot levels, thus, strengthening the rural and lower strata of the society. But retaining employees is amongst the major concerns of the SMEs. Any organization grows because of the competent workforce it employs. For running a successful SME one needs to have a systematic HR system in place. But most often HR becomes the neglected aspect of SMEs.
If stats are to be believed 80% of small and 20% of medium enterprises do not have a formal HR system. SMEs aren’t aware of the benefits and strategic dimensions of having HRD. By having an HR department, SMEs can effortlessly face the challenges of employee recruitment, employee engagement, and employee retention. The sole focus of SMEs is acquiring talent and retention is an aspect that takes a backseat. Retention of the employees is important because when an employee is happy it leads to an increase in productivity and client acquisition and client retention. But the question remains, how can SMEs retain their employees?
In this blog post we shall highlight a few practices that can help the organizations retain employees.
- Employees these days are looking for job satisfaction and growth opportunities. An organization should provide timely incentives and appreciate the employees to keep them motivated. For instance, upon meeting a sales target the organization can give a bonus to the employees.
- In the cut-throat competition where everyone is trying to pave a path for themselves, combating work stress and work politics is difficult. In such cases, an organization should aim to establish a healthy work environment and conduct workshops or chalk out programs that will help take off the stress load from the employees’ shoulders. In some organizations, you will see weekly food parties or a Yoga/ Zumba workshop being conducted with the aim to destress.
- One has to ensure employee engagement when it comes to making certain decisions of the company. This ensures employee participation. For instance, ask the employees what all improvements can be done in a particular unit of the company, maybe in a meeting or via anonymous suggestions given in a suggestion box. The employee needs to feel valued.
- Help the employees to enhance their skills and talents. For that, the company might ask its HR department to scavenge for workshops or seminars or organize training camps for the employees at regular intervals.
- Hierarchy though needs to be maintained in the company yet having an open-door policy can help gain the confidence and loyalty of the employees.
- The safety of the employee must be kept in mind. Employees should be given a hygienic work environment.
- Providing financial benefits also ensures that an employee stays back in the company. By financial benefits, we mean benefits like health insurance, medical, house rent or PPF.
- To help the employee work better a strong technology should be put in place. And this technology should be upgraded from time to time.
- Create a transparent administration system. By that, we mean that the employee must know about his work performance, attendance, and other benefits.
- Mapping out an easy resignation policy for the employees ensures that the name of the company isn’t maligned. Some organizations in order to discourage the employees from leaving the organization chalk out some difficult clauses in their appointment letter but this can have an adverse effect on the productivity of the company. If the employee isn’t satisfied it is going to show on the output of the employee.
- An organization should try to help rejuvenate the spirits of the employees by conducting recreational activities from time to time. These recreational activities can include a field trip or some fun activities in the office or subscriptions to corporate libraries etc.
With these aforementioned points, we hope that we have solved the major concern of SMEs that is employee retention.