Losing and hiring employees is expensive for any business. According to an article in Forbes by Darius Fisher, president and co-founder of Status Labs, an online public relations and reputation management firm, it can cost a business up to 400% of an annual salary for a top-level, executive, highly specialized employee.
Lower level employee replacement is also pricey. For an entry-level worker, it can run as high as 50% of the salary to hire a new one, and 150% for a mid-level employee.
Fisher has used various techniques at his firm to keep employees from leaving. They were successful and boosted morale. His suggestions are:
• When an employee accomplishes something extremely noteworthy for the company, he or she should be recognized and acknowledged. Emails are sent to everyone praising that person. People like recognition, and getting it is a great morale booster.
• Setting goals and encouraging workers to reach them by offering rewards is also a form of recognition. For example, Fisher cites a trip to Costa Rica, tickets to a music festival, watches, and a free house-cleaning. It is important, he says, to find out what makes the staff happy. Even small companies can offer rewards, such as monthly sessions with a yoga instructor or an extra day off.
• Employees like to be kept informed. Newsletters can serve as the messenger introducing new colleagues, company successes, and new offerings. Monthly meetings serve to inform and answer questions. Both are morale-boosters.
• Raises are important and generous raises are better. An exiting employee can expect to get a 10 to 20% raise at the new job. Fisher says a “worthwhile” raise is the best way to keep a worker.
• Create special events for the workers, Fisher suggests. Examples he gives are “free lunch Fridays,” a meal catered by local food vendors; a fun event, such as a trip to a lake with aquabiking and paddling; birthday recognition; establishing healthy and creative workspaces decorated by the employee; a pet-friendly environment allowing dogs and other animals in the office for the convenience of the owner who may have to leave work to care for Fido. These types of activities are all initiated to keep morale up.
According to Fisher, the solution “is to find out what makes your employees happy. Once you do that, you can understand what motivates people and take the steps necessary to achieve an environment that makes them an asset to your team.”
Fisher’s firm, Status Labs, helps repair the reputations of noteworthy individuals whose online personas have been damaged. His goal has been to create a body of positive information about the client to combat the negative.
He has offices in Austin, New York and Sao Paolo. He has 1500 clients in 35 nations. In addition to reputation management, Status Labs also is involved in Public Relations, crisis response, social media marketing, content marketing and SEO.