Small businesses face many challenges, from visibility to funding and everything in between. However, there are certain things that companies of all sizes must be concerned with, such as employee turnover and retention rates.

Employee turnover can hit a business hard – especially if that business is small. According to the Center for American Progress, turnover can cost a small business anywhere from sixteen to over two hundred percent of an employee’s salary. In other words, the company may pay more for losing that employee than they would for their salary.

The good news is that employee turnover doesn’t have to be a death knell for the company. It simply requires a business to be proactive and work hard to retain talent whenever possible. Here are a few tips on how to do so.

Start at the Beginning

Overhauling a company’s retention rate requires a closer look at the beginning of the process – the hiring stages. Start by creating accurate job descriptions (nobody likes feeling tricked into a job) and focus on finding the right fit for the company.

In other words, while it may be tempting to fill shoes right away, it is better to take a bit more time searching for the perfect employee. This will save the company time and headaches in the long run.

Tackle the Team

Next, it is time to look at the team. A strong team that works well together is more likely to have a higher retention rate. A team should be balanced, with everyone sharing similar desires and goals. Likewise, they should have complementary skills and talents.

According to one study, one-third of employees have seriously considered leaving their jobs due to their team. This means that teamwork should be taken into consideration. Take the time to build the right team, and avoid putting clashing personalities together.

Leave Room for Growth

Another common reason employees leave a company is the lack of upward momentum and personal growth. People who feel they have no chance of earning promotions or achieving professional development will quickly tire of the work. 

In other words, employees will leave if their job satisfaction drops too low. The best way to counteract this concern is by providing opportunities to grow and learn. Consider providing additional training or even offering tuition assistance for continuing education.