The Employee Retention Credit (ERTC) is a payroll tax credit available for businesses that kept paying employees during the COVID-19 lockdown. The IRS has provided robust unofficial guidance in FAQs that fleshes out how the credit works for employers. The ERTC can help your business keep its best employees. However, you can also take other steps to improve retention rates.
Invest in Your Employees
Employee retention is a key metric for business success. Employees who stay with a company are more likely to positively affect a company, from driving growth to contributing to a better work experience. In turn, this benefits the company as a whole. To help increase employee retention, consider investing in your employees in line with ERTC changes. You can invest in your employees in several ways, including monetary compensation, mentoring and training opportunities, and company trips. Investing in your employees can also mean offering flexible working arrangements, such as the option to work remotely. This allows employees to balance their personal and professional lives, which can greatly benefit many people. It can also help improve morale and productivity.
In addition, offering employee incentives such as salary increases or perks like paid sick days or free lunches can be beneficial. This can be a great way to show employees you value their hard work. It can also be helpful to provide regular employee performance reviews so that employees know how their progress is being assessed and can address any issues promptly. Finally, creating a culture of open communication with employees is important, especially during times of change. Employees are more likely to embrace change if they understand why it’s happening and how it will affect them.
Make Your Company a Great Place to Work
Great companies try to meet their employees’ physical, mental, and emotional needs. They also offer competitive compensation and a variety of perks, like profit sharing, free meals, or gym memberships. These extras attract top talent and encourage employees to stay with the company long-term, improving productivity and morale. Employees of great companies believe their leaders care about them and share a commitment to their individual and business success. They also trust and respect their managers. This level of open communication allows for greater transparency and a strong sense of teamwork. Great companies value employee opinions and encourage constant feedback and recognition of employees’ efforts. Providing a caring work environment also means giving employees flexible schedules or letting them work from home when necessary. This shows your employees you trust them to manage their time and work from anywhere, which can help keep them happy. If you’re a small business forced to close partially or fully during the COVID-19 pandemic, you might be eligible for the Employee Retention Credit (ERTC).
Create a Positive Work Environment
A toxic work environment can cost your company lost productivity and employee morale. Employees who feel miserable are less engaged and more likely to quit. There are several ways to make your workplace more positive and entice your best workers to stay. One way is to focus on the company culture. This involves hiring people who fit your company and ensuring existing employees stay safe. If you have a toxic employee, don’t hesitate to let them go. Taking this action quickly will help keep the rest of your team happy and productive.
Another way to create a positive work environment is to show your employees how much you appreciate them. This can be done in various ways, from encouraging your employees to thank each other daily to providing opportunities to share their feelings about the company in group meetings.
Lastly, creating a positive work environment can also be done by giving employees the tools they need to do their jobs well. This includes ensuring they have access to the technology needed for their work and providing training programs to ensure they are always up-to-date on their skills. Finally, a positive work environment can be created by creating an ethical working environment. This means establishing a zero-tolerance policy for unethical behavior and ensuring that employees have the support they need to be successful in their roles.
Make Your Company a Great Place to Retire
If your best employees are reaching retirement age, you can help them transition smoothly. For example, you could offer flexible retirement options such as job-sharing or allowing them to continue working part-time with colleagues. It’s an idea that some 30 percent of America’s largest employers are already implementing, according to WorldatWork. This may seem small, but it goes a long way toward making retiring employees feel valued and respected by their companies. Employees who feel valued are more likely to stay with their employers. You can also show your employees how much you appreciate them by offering unique perks that your competitors don’t offer. These can include teambuilding events, social gatherings to celebrate company milestones, and individual employees’ birthdays. It’s important to note that perks should be what your employees want, so research before implementing them.
You can also keep your best employees by providing them with clear paths for advancement. This will make them feel like they have a purpose and are making a difference in the lives of others. Employees who need to advance often leave their companies for new opportunities.
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