Improve Employee Retention Rates Through Human Capital Management
In this economy, every business is looking for ways to increase retention and customer loyalty. It makes sense, too. After all, it’s much cheaper and easier to retain your existing workers than it is to constantly hire new individuals and train them. However, following-up on customers after they’ve left is an area where businesses can really save money. Follow-up helps retain your best employees by:
Delivering excellent customer service. Customer service reflects everything about your company. If you want to increase retention and customer loyalty, treat your customers well. Even if your products or services aren’t perfect, your customers deserve the best from you, and you can show them how much you care through your behavior and the way you treat them. Provide honest feedback, good service, and good reasons for your products or services.
Tracking customer feedback. Surveys are an excellent way to determine what your customers want. When you understand what they’re thinking and why, you can design products or services to make them better. You can also increase retention and customer loyalty by tracking customer feedback. Many survey tools are available online, and most companies now have survey software so you can collect customer feedback on-site or send surveys out with pre-written questions for your established customers, current customers, or even for new customers.
Analytics to improve your understanding of your customers. You need to understand who and what is driving your business in order to increase retention and customer loyalty. That’s why you need analytics. Customer data will help you understand which advertisements are working, which advertising copy is effective, which ads are not working, which employee actions are productive, and which employee actions are inefficient.
Answering the questions that will increase retention and customer loyalty. What is your customer profile? What makes customers stick with your company? How do customers find you? Your ability to connect with your customers on all levels, across all media, will increase retention and customer loyalty.
Creating a value proposition. What are your unique advantages? What do you offer that other companies do not? Customers want to be with a company that is strategically positioned to provide the solutions they need. If you cannot answer those three questions, then you will lose retention and new customers; and you will become more of a liability than an asset.
Analytics can provide the answers to those questions and provide you with strategic direction. With strategic direction, comes a commitment to ongoing strategic planning. Without strategic planning, you are operating with a blind eye. When you provide the answers to those three questions through analytics, you will be able to focus on what matters most to the future of your business.
It is important for companies to realize that customer satisfaction is ultimately the answer to their retention and profit potential. A company that does not understand this concept is operating with one eye closed. Analytics will provide the information that a company must have in order to maximize its profit potential, increase its customer satisfaction, and reduce its switching costs. You cannot afford to ignore this critical component of your operations.
A second way to improve employee retention is to improve the onboarding process. During the onboarding process, individuals are assigned to work with new or different tasks depending upon their skill sets and talents. Through improving the onboarding process, individuals are given meaningful work that helps to increase their skills, develop new talents, and increase their awareness of their capabilities. This will lead to improved retention. In addition, improved onboarding will lead to better engagement with customers, greater customer satisfaction, and less switching costs.
In addition to excellent onboarding practices, a company must focus on its employees if it wants to improve retention. Ineffective or poorly trained employees negatively impact the performance and quality of the company’s products and services. Effective employees, however, contribute to the company’s growth and profitability. Therefore, companies must focus on improving the retention of its employees to ensure that the best employees stay while the best employees are hired to fulfill the company’s needs.
Finally, companies must also create successful employee retention programs to foster retention. These programs include creating an environment where employees feel valued, supported, and able to advance within their organization. This will foster a sense of involvement and empowerment within the employees and they will be more likely to go out of their way to provide the customer service that customers expect. In addition, these successful employee retention programs will provide employees with the tools and information they need to help retain customers.
Increasing retention rates is important for a company to achieve its short and long-term business goals. Although turnover rates tend to be high during economic downturns, companies can still increase their retention rates by creating an environment where employees are engaged, supported, and able to advance within their company. Ineffective or poorly trained employees can have a significant negative impact on the quality and profitability of the company’s products and services. Therefore, companies must focus on improving their human capital management practices to improve retention and their overall business performance.