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Does your business lose people at a faster than average pace? Do new employees tend to leave after just a month or two? If so, it's time to figure out why.

The Importance of Improving Your Retention Rate

Finding, hiring and training new employees is a complex process. Each person you hire represents an investment, and not just monetarily. Your existing staff must spend time learning about the individuals who applied, interviewing those who seem to be qualified and training people once they are hired.

Losing employees soon after they start creates a difficult and frustrating experience for everyone involved. When this happens, it necessitates another hiring cycle that requires more time, money and resources. Every business should develop plans to improve their retention rate. Here are a few ideas to help.

Don't Skip the Verifications

Background checks provide essential information about prospective employees. These reports are commonly used to see if someone has a serious criminal conviction, but they can also include useful details about an applicant's education and employment history.

Rely on verification services to confirm that your candidates have the experience and education they need to succeed. People sometimes exaggerate on their resumes. While this may be done with the best of intentions, some jobs require specific training and knowledge. Candidates who don't have the right background might not be able to handle the responsibilities of a position, which could cause them to exit quickly.

Some positions also require licenses or credentials. Background checks can confirm that candidates are properly credentialed for any job. Add verifications to help pinpoint applicants who are qualified and likely to flourish with your company.

Find People Who Are a Good Fit

Someone who has the right experience and training for a position still might not be an ideal fit. Part of the hiring process includes attempting to identify people who will excel in your work environment.

It's equally important to make sure candidates understand your company's culture, goals and expectations. Much of this can be done during the interview process, but it's also helpful to write about these concepts in every job description. Providing such information upfront helps job seekers determine whether or not they should apply.

Review Your Onboarding Process

Once you hire someone, what happens next? Do they get the tools, training and resources they need? Will someone spend time with them to ensure they understand what is expected? Is anyone available to answer their questions and provide guidance, especially during the first week or so?

Onboarding can be critical to the success, or failure, of a new hire. If an employee doesn't feel they are receiving proper training or knowledge, they may opt to look elsewhere. Challenging people can be a fulfilling and rewarding experience. But 'tossing someone in the deep end' without preparing them can be a discouraging and scary situation.

In the long term, establishing a thorough onboarding program is more beneficial and cost effective than going through the hiring process again and again.

Develop Your Company Culture

If you continuously have a heavier-than-average turnover rate, it's time to look internally. People leave new jobs for many reasons and are often willing to explain why during the exit interview. Listen to what they say; especially if you keep hearing similar stories.

While reviewing your onboarding techniques and company culture, consider the following:

• Do new hires understand what is expected of them?
• Are people receiving the support and education they need to prosper?
• Does your company offer challenges, room for growth and a clear career path?
• Do competitors provide better salaries and benefits?
• Is your staff working together to accomplish business goals?

Determining what might be wrong with company culture, and how to fix it, is no easy task. But identifying issues that lead to a rapid turnover rate is a positive first step towards creating a better environment for everyone.

Best of luck with all of your hiring and onboarding efforts!