Saving money isn’t a good priority in your business.
I know, a shocking statement by any means, but especially in our current inflationary reality. But, here’s what I mean…
If we’re speaking strictly in terms of getting your costs down, it’s understandable why you’d prioritize anything that gets you savings. When prices go up, you have to adjust for that.
Another area that has become even more tempting for “saving money” is in your tax filing. The lure of Turbo Tax’s cheap rates and “built-in” support are tempting, as are the promises that AI is supposed to take care of those tax tasks in your business.
But, as many have learned, DIY and AI tax software doesn’t always mean cost savings… and I’m not just talking about the price tag.
I’m also talking about positioning you rightly in your tax situation… or cleaning up tax moves you messed up and are now paying for (ERC claims, incorrect payroll reporting, etc.).
My calendar is open for appointments: woodlands-cpa.com/information-gathering/
Now, because cost savings are in fact important, let me talk about an area in your Montgomery County business that could be costing you more in the long term and how you can combat it…
Reduce Employee Turnover Rate in Your The Woodlands Small Business
“It’s the little things you do that make the big things happen.” – Mike Dooley
The bad news: 57 percent of employees want a new job in 2025. (And don’t just hear abstract, far-from-home numbers here. This is your team I’m talking about.)
And the other bad news: This high turnover rate will hit your business’s finances right where it hurts. The full process of losing and replacing an employee could end up costing you anywhere from 50 to 150 percent of that employee’s annual salary (depending on their position).
But the good news? You don’t have to let this happen to YOUR business. This trend is actually within your power to change.
So, to help reduce employee turnover rate in your The Woodlands business, you need to tackle the root of the problem. Employees say burnout, feeling undervalued, and limited growth opportunities are some of their reasons for wanting to leave. Let’s start there.
1. Wage war on burnout
We’ve all been there – operating in survival mode, running off the waning mental and emotional energy left in the tank (and a concerning amount of coffee).
44 percent of employees resonated with that feeling in 2024. No wonder they want to leave.
To change that, start by rewriting (or reinforcing) your team’s core values. Instill a sturdy foundational belief in workplace well-being, and build up from there. Communicate this as one of the main values of your company, and check in regularly on how your employees are doing.
Then, do what you can to fight burnout. Of course, your business probably has busier seasons where more will be expected of your employees, and they’re bound to have (sparing) moments of exhaustion.
But this should not become their norm.
You can help them manage their workload well by…
– Giving them a reasonable amount of tasks/work. Be aware of how much they have on their plate and assess how realistic your expectations are of them.
– Facilitating work-life balance, especially by setting clear boundaries for after-hours work and encouraging breaks throughout the day.
– Making your expectations clear. One of the most freeing gifts you can give to your team is clarity. Make it clear what’s expected of them (and what isn’t) so they can excel within those lines.
– Delegating carefully. If you’re about to start a new project, calculate how much more weight the tasks involved will put on each employee’s shoulders and if they have the capacity for it. Because if your quest for profits ends up pushing your employees over the edge, you’ll end up eating through those profits when you have to replace them.
2. Show how much you care
To reduce employee turnover rate, your employees need consistent, intentional appreciation (and I don’t mean a box of donuts at your staff meeting).
This has to start with a mindset shift in YOU. To be able to call out the good in others, you have to build a habit of seeing it. So train your mind to see the good your employees are doing instead of how they’re falling short. Then, call it out in specific terms (either metrics-based results or praise-worthy behaviors).
And if you don’t see much to celebrate? Still recognize effort. Show that, more than objectives accomplished, you see the sweat.
Make it known that you value what your employees have to say as well. Ask for their professional insight about growth potential in their departments, and their feedback on what could have been done better after a project is completed. And it doesn’t hurt to check in on a personal level as well, to get a general gauge of how they’re feeling in their role.
3. Help them grow
Now, I get that your business probably isn’t structured in a way that allows for a lot of career growth opportunities (at least, not in a way that competes with a larger company). But meaningful growth opportunities do exist, and you can foster them in a few ways:
- Offer training, mentorship, and cross-training opportunities for building valuable skills.
- Give your employees more challenging tasks or leadership roles in projects.
- Take advantage of the flexibility a small business offers and encourage your employees to explore different roles within the company. Wearing multiple hats will help them grow in unexpected ways and gain a wider range of skills.
- Support your employees in launching their own ventures. If they have a big idea for a business of their own, offer guidance, connections, or even partnership opportunities.
And of course, probably the most effective way to reduce employee turnover rate is with raises. Aim to give yearly raises of around 3-5 percent. This is the kind of reward that really matters to them, because it offers support where they need it most.
The numbers don’t lie here – if you’re going to pay your employees more, that money will have to come from somewhere else in your budget. Which will require some assessing and adjusting on your part.
And if that sounds stressful to you, let’s talk. I’m here to help you analyze your current budget and find places where a little push-and-pull can happen (without making your overall goals suffer). Just grab a spot on my calendar:
woodlands-cpa.com/information-gathering/
To protecting your business this year,
Aurelia Weems