How to Increase Employee Retention

Training employees for a new job position is costly and time consuming for a company, no matter the size or industry of the employer. The key to making the investment on new employees worthwhile is retaining the skilled employee once they are competent. Here are some ways to increase company profit by retaining employees, avoiding the expenses it takes to train a new hire.

  1. Step 1

    Many new hire employees leave the job position before the point that the company is making money off of them. In other words, the expense of training outweighs the time that they spend working the position as a competent, contributing employee. This means that the issue of employee retention usually arises in the first few months. Creating good communication venues with new hires in the first 6 months about expectations, concerns and professional development can counteract that statistic, helping increase employee retention rates.

  2. Step 2

    Ensure employee integration to increase new hire retention. Encourage staff bonding and a friendly work atmosphere. Working to create a feeling of being a “team” can help strengthen staff retention.

  3. Step 3

    Be clear in your expectations of a new employee from the beginning. Transparency will allow the new employee to make an informed decision about whether or not the job is appropriate for them; decreasing the chances that they quit after one month due to failed job expectations.

  4. Step 4

    Communicate with your new hires; follow up with their progress in the workplace and provide them with constructive feedback about their job performance.

  5. Step 5

    Utilize your more established employees to ensure retention of newer employees. Connecting the new hires to key coworkers will provide a chance for positive camaraderie to develop and give the new employee additional resources to turn to for guidance and questions.


Richard Reid is the founder of Pinnacle Proactive, Specialising in the Employee Assistance ProgramStress ManagementStaff Retention & Absenteeism. Take a Proactive Approach to Growing Your Organisation & its People. For more info visit


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