5 Ways Employee Retention Software Can Help Keep Your Turnover Costs Down

As a small business owner, you know all too well how difficult it is to find and keep a good team together.

The U.S Bureau of Labor Statistics reports that 3 million people quit their jobs every month. 30% leave within the first 3 months of employment. To small business owners, these stats are terrifying.

When you’re running a lean team to start with, every single person is crucial and any turnover is a huge setback.

Luckily, many have walked this path before you and have found ways to keep teams engaged, loyal, and happy. Employee retention software can enhance employee engagement by utilizing platforms and tools that include pulse surveys, feedback collection, recognition, rewards, and wellness programs.

The right employee retention tools make all the difference in your business operations. If you’re fighting high turnover or lack of motivation and morale in your team, some technological support can really help you.

Below we explore some employee retention solutions to keep your team happy and sticking around.


What is employee retention software?

It sounds fancy, but employee retention software (or HR retention software) is just a toolkit that helps you keep a pulse on the overall happiness of your team.

Put simply, HR retention software gives you a digital hub to track things like employee feedback, performance, and job satisfaction. It can also help manage the employee lifecycle by streamlining HR processes, managing hiring, compensation, data analysis, and offering personalized upskilling and career paths to enhance job satisfaction and retention.

It can also help you build a retention program for employees and monitor the results. Find where employee happiness is excelling and where it can be worked on. Identify your star players and build a career track for them to thrive in.

When it all boils down, employee retention software is all about creating a happy, productive work environment where your team feels appreciated and engaged, reducing the chances of them leaving for greener pastures.

Why do you need employee retention software?

High employee turnover is expensive.

A study by Gallup found that collectively, U.S. businesses lose a trillion dollars a year on employee turnover.

Yes, a trillion.

Beyond that, the same study found that replacing an employee can cost half of their salary in the best case scenario, and two times their salary in the worst case.

To illustrate this point, Gallup points out that a 100-person organization with an average employee salary of $50,000 could spend up to $2.6 million on replacing their team.

Big yikes.

As a small business owner, high employee turnover is simply something you cannot afford.

So what’s to be done?

How to Make an Employee Schedule (Six Easy Steps)

5 ways employee retention tools reduce turnover

An employee retention tool is your friend when it comes to reducing your turnover.

Having a solid employee retention strategy is crucial for improving the organization’s retention of employees. Gathering feedback through exit interviews and addressing underlying issues can enhance this strategy. Additionally, team building activities can contribute to the employee retention strategy by promoting team bonding, motivation, and engagement.

The right software can help you in these 5 pivotal ways.

1. Boost employee engagement

Good employee retention software will allow you to foster team engagement with a nifty set of tools designed to get candid feedback from those with boots on the ground. Employee recognition platforms can significantly boost engagement and retention by creating a culture of appreciation and teamwork through continuous recognition efforts.

Retention software helps you do this with:

Pulse surveys: a pulse survey is a short set of questions sent out frequently to get the “pulse” of how people are feeling about your business. During less turbulent times, pulse surveys reveal trends in overall morale and job satisfaction. During harder times, like a down-size or managerial transition, they can be lifesavers to stave off problems before they arise

Feedback management: once you start getting feedback from your team, you need to keep it organized and manageable. HR retention software is designed for this very thing. Your team can be assured of their anonymity when giving feedback through the software and you can design structured questions for them to answer, gathering opinions on targeted areas of interest.

Engagement Analytics: analytics are powerful for understanding who is most engaged in your team. This helps you see areas where engagement is lacking and develop strategies to address those issues.

2. Improve recognition and rewards

No one wants to feel like the work they do is thankless. Working relationships, like any relationship, require the ability to frequently show appreciation for everything the other half of the relationship is contributing to keep the ship afloat.

In the flurry of doing business, it’s all too easy to inadvertently take your star players for granted. You may verbally express your appreciation now and then, but you must take care to nurture the trust you have built with your team, which includes recognizing them in tangible ways. Developing an effective employee retention program is crucial, as it aligns with the company’s goals and values while addressing the needs and concerns of employees.

And let’s face it — as much as your team may like you and enjoy their work, they are ultimately doing their job to finance their life. Giving them regular raises, bonuses, and levels of rewards to shoot for is one of the primary ways your team will feel appreciated.

Many small businesses want to be able to pay their teams more but struggle with the ability to do so at their current revenue level.

If you can’t give a big fat raise to your team, you can still give them rewards they will appreciate, such as additional time off, a larger employee discount, and similar.

Retention software can help you set up and manage a variety of reward programs tailored to your business culture and preferences without having to manually track who is entitled to what and on what timeline.

3. Career Development tools

56% of job seekers are seeking career growth opportunities, including learning and career development.

Talent management can help with career development and retention by leveraging AI and HR analytics to provide insights into employees’ skills, strengths, and areas for improvement.

Employee retention software fosters career development with:

Goal setting: communicate with your team members about where they want their career to go. Are they interested in learning different roles in your business than the one they’re currently filling? How can you help them get there? What skills do they need to learn? Craft a skill development plan with actionable milestones right in your software.

Performance reviews: regular performance reviews help you keep in close communication with every individual member of your team. They help you see their individual strengths and areas to work on and help you remember when it’s time for a raise or performance-based reward.

Learning platform integrations: many employee retention programs allow you to integrate with other learning platforms. This means your team can upskill with the software you already have instead of going out and getting more subscriptions and learning new interfaces.

4. Stronger communication business-wide

As we’ve mentioned, good communication is the backbone of any healthy relationship. When managing a team, though, the wires can get crossed very fast and miscommunications can abound.

It’s essential to have a central hub for communication where everyone is heard and every issue is addressed. 

Retention platforms include built-in communication tools like chats, forums, and news feeds. These features facilitate open communication, keeping employees informed and connected.

5. Powerful data-driven insights

Data is power. It gives you insights that go beyond gut feelings and lets you know what’s going on in measurable, tangible ways that can be addressed.

The cost of employee retention software can vary greatly depending on several factors, including the feature sets offered. It’s important to choose the right software based on both features and costs.

With clean, clear data in hand, you can confidently make decisions for your business to help reduce turnover.

Some analytics features you can expect from employee retention tools are:

Customizable reports and dashboards: see the pivotal information at a glance. Build your reports and dashboards to reflect only what you need to see from day to day. You can keep a comprehensive view of how everyone’s doing and monitor key metrics in real time to help you manage your day.

Predictive modeling: an advanced use of AI, predictive modeling examines factors like the level of team feedback and engagement, the average tenure of current and past teammates, and team performance to predict turnover risk.

Employee retention software tools and solutions

If you’re ready to stop (or prevent) high turnover and retain the talent you already have, here are some of the best employee retention software tools to consider:

Homebase

Homebase is a workforce management app designed for small service-based businesses. It’s an all-in-one solution that streamlines employee scheduling and time tracking with an extensive list of features including team calendars, time clocks, automatic notifications, and budget forecasting.

Because it’s designed specifically for small businesses, Homebase offers industry-specific integrations like Restaurant365 and Tiphaus that greatly simplify your admin hours and let you do what you do best — running your business. 

Acuity scheduling 

Acuity Scheduling is the best tool for appointment-based shift scheduling or small businesses that rely on recurring appointments. 

Their automated booking feature allows clients to easily make, cancel, and reschedule their own appointments, eliminating a lot of administrative hassle for you.

Better client management means operations are running smoothly, your team is not stressed or frazzled, and your working environment stays peaceful and flowing.

Connecteam

Connecteam is the best free scheduling tool with customizable templates and unlimited checklists.

Employee scheduling is a breeze with an easy drag-and-drop interface that can be seamlessly shared across teams, even on mobile.

It’s comprehensive and easy to access for any team member, regardless of where they are. Connecteams is a tool that keeps everything in one place and avoids miscommunication and scheduling conflicts by keeping things simple.

End the chaos, start growing

Small business management doesn’t have to be overwhelming. Homebase offers a free plan that includes essential features for small businesses with up to 20 employees at a single location. 

One app. One place. No headaches. 

Get started for free.

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