Small Businesses Employee Retention Problems Surge With Low Unemployment Rates

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small businesses employee retention problems surge

Hiring is on the rise in many parts of the country, and Nevada is no exception. According to the Nevada Department of Employment, Training, and Rehabilitation’s May 2018 labor report, Nevada’s job growth is holding at 2.8% and unemployment has gone down to 4.8%, the lowest it has been since 2007. In fact, Nevada has added 37,600 jobs over the year and reclaimed the title of the fastest growing private sector in the U.S.!

What does this mean for Nevada employers? For most, it will mean more hiring and more competition to get the best new hires as job seekers have more options to choose from.

Approximately 213,000 jobs were created nationally in June 2018, and the national unemployment rate slightly rose from 3.8 percent to 4.0 percent, according to the Bureau of Labor Statistics. The low unemployment rate comes with additional challenges for small businesses. The applicant pool isn’t as large to choose from, and it has been my experience that 50% of potential applicants no-call-no-show for their interviews. Out of the 50% that do show up, most are not qualified. Spending time and money on new hires can be daunting. From checking backgrounds to employment verifications, we are over $100.00 invested in a new hire before they start work. In 2014, I began doing personality tests on potential new hires I feel has saved us in hiring the wrong candidate.

According to a report by Harvard Business, Millennials are the “job hoppers”. Millennials were 21 times more likely to leave their employment over other generations in the workplace. This can create a major headache for employers now dealing with the challenges of finding a pool of quality talent to interview and hire, and when they do find a new hire, the next obstacle you’re faced with is employee retention problems.

So how can an employer stand out in a sea of job opportunities? Here are four ways to attract and retain the best talent.

Four Ways to Make a Great First Impression

According to the Nevada Department of Employment, Training and Rehabilitation (NDETR), roughly 26% of Nevada’s economy is based in the hospitality and leisure sectors, with healthcare and other key industries growing rapidly. Many large employers, including casinos, resorts, and healthcare providers, are challenged with costly high employee turnover rates.

Potential hires have the freedom to choose the employer they feel will be the best fit for them, and as the saying goes, you only get one chance to make a good first impression. With this in mind, here are four things you can do as an employer to make a lasting positive impression.

  1. Choose Employee Screening & Background Check Companies Wisely

Many Nevada jobs require background checks and fingerprinting in order to ensure the safety of the public, especially our most vulnerable populations, which include seniors, children, and the disabled. A number of local employers we have spoken with say that applicants have complained that the fingerprint company they are sending them to is “sketchy” or “unprofessional.” My banker recently mentioned she was fingerprinted at a store that also sold knockoff purses and accessories. While she did not trust the company performing this background check, she wanted the job and had to choose between her new job or potential identity theft. This left her uneasy with the new job and questioning the new bank she accepted the position.

This is negative feedback for a couple of reasons. First, the fingerprint and background check vendor you choose is a direct reflection on your company. If that vendor seems less than professional, it can make new hires question your business practices and the value you place on employees. Secondly, new hires can feel uneasy about providing such personal information to a fingerprint vendor that they don’t trust, even to the point of the employee deciding against having their background check or fingerprints done to complete the hiring process.

  1. Implement a Well-Thought-Out Orientation

One major complaint from new employees revolves around the new employee orientation. More specifically, many employees feel overwhelmed, anxious, and underequipped to be as productive as they could be when the employer rushes through the orientation process and sends the new employee out into the work environment without the proper tools to be successful.

Rather than overloading new hires with paperwork and training videos and then sending them off, consider stretching out the orientation to boost retention. Tips for a successful orientation include:

  • fostering an environment where new employees feel comfortable asking questions at any point during training.
  • mixing the mundane (like W-2s, procedures, and policies) with positive experiences like icebreakers that the employee will go home feeling good about.
  • providing special items to help new hires to feel comfortable and welcomed, even if it is just a branded tote or other small item.
  • assigning a mentor to help employees feel comfortable, supported, and important as they begin their new positions. This mentor should be comfortable showing them the ropes, introducing them to others, and providing ongoing support for at least a couple of months until the new employee has become acclimated to their position.
  • making it clear to your employees that you value them and want them to come back following the orientation.

Check out this article by The Balance Careers for some great tips on successfully orienting employees for maximum retention.

  1. Create a Great Company Culture and Work Environment

Employees, whether new or not, appreciate a culture of caring and respect. Transparency ranks high on employee surveys. What do applicants and new hires encounter when they walk through your doors? Are they warmly greeted? Does your staff take the time to engage them in conversation to make them feel welcome? Is the work environment aesthetically pleasing and well-lit or dank and uncomfortable? During the hiring process, do the interviewers take the time to get to know and connect with the individual, or does that person leave the interview feeling like just a number? All of these factors contribute to whether or not a potential or new employee wants to return or feels that they may be happier in a better work environment.

  1. Offer Perks to Sweeten the Pot

As employers, there are many things you can do to make employment with your company attractive enough to recruit and retain good employees. Perks can include benefits packages with any number of options. Some examples of attractive benefits can include the following:

  • Health insurance
  • Life insurance
  • Retirement savings plan
  • Telecommuting
  • Flextime
  • Paid vacations
  • Paid sick time
  • Paid training/continuing education for advancement
  • Aligning goals of staff with the company

In addition to the more traditional benefits listed above, you can offer less formal perks that will make employees happy and incentivize them to stay. Some examples of this could be employee discounts on your products or services, monetary incentives for employees who recruit a new hire, and rewards for positive customer feedback. The sky is the limit here, and you can tailor incentives based on your company size, budget, and goals. The important thing is to let employees know that you value them, even if it is something as basic as sending them a thank you card for a job well done.

Fingerprinting Express – Nevada’s Trusted Background Check Provider

Are you a Nevada employer in need of a reputable company to provide fingerprint background checks? We can make the hiring process easier for you by treating applicants with respect, helping to answer any questions, and processing fingerprint background checks safely and securely. We also have the lowest rejection rates, saving you and your employees time and hassle. Check out our online reviews to see what customers are saying or contact us to learn how we can help!

 


At Fingerprinting Express we strive to provide the most professional and timely service in the industry. Our staff, our store and our process are all set up to make you feel comfortable and safe knowing your personal information is being protected and handled appropriately. If you are an employer or an individual seeking fast, clean, professional fingerprint services and background checks in Nevada, call us at1-800-919-0227 or schedule an appointment online today.

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