How To Retain Talent As An Entrepreneur Scaling Your Business

Being an entrepreneur means wearing multiple hats to manage crucial business operations, including HR, marketing, sales, training, R&D and accounting. As you begin to scale your business, there is one thing that may take you by surprise. (It certainly took me by surprise.) That is, the difficulty of retaining talent.

Retaining talent is not always something you can control.

Who would have known employee retention was something you had to worry about? I hired my first employee in August 2017. It’s been over a year and I am happy to say he is still a part of the team. I wish I could say the same for my second, third and fourth hires, who all quit within three months of their start dates.

My second hire started in January and was gone by March. Her father passed away and she was unable to focus on work. My third hire started in March and was gone by June. She had never worked remotely and realized quickly that she missed working in an office with people. My fourth hire started in July and was gone by August. She had a terrible car accident, had surgery on her spine and was unable to continue working.

While I still have a great relationship with these people, and even helped some of them find new jobs, hiring and training employees who do not stick around long-term can be expensive and time-consuming.

Focus on what you can control.

While there will inevitably be events out of your control that cause employees to leave, there are many things you can do to maximize your chances of retaining talent. Believe it or not, most of these strategies do not involve paying your employees a higher salary. The acronym to remember for the best employee retention is FARMS.

1. Freedom

I give my employees the freedom to choose when they work (within reason). If someone has a doctor’s appointment at noon, they are free to go. Of course, I expect they will make up their work either before or after. Very rarely is it absolutely mandatory to be at their desks from 9-5 without exception. Companies that strictly adhere to this standard will have lower employee retention.

2. Activities

Team activities not only provide you the opportunity to become closer with your team, but are also much appreciated by your employees. Of course, having an on-site team makes this easier. You can schedule company picnics, retreats, seminars, etc.

In my case, my team is 100% remote. This forces us to get creative. We have team video conferences every morning. Rather than jumping into business activities, we share something personal about ourselves. For example, I have shared that I used to wrestle in high school and that I recently purchased my first home and became engaged. These activities are not only a nice break from work, but they allow us to grow closer to one another and create lasting friendships.

3. Recognition

It’s easy to get so caught up in your day to day that you forget to acknowledge and recognize your team members. I found myself spending more time pointing out the things my employees were doing wrong, rather than complimenting and congratulating them on their wins. Positive reinforcement and recognition can go a long way and does not cost you anything, aside from a couple minutes of your time. Trust me, this is something you want to start doing if you’d like to retain talent for as long as possible.

4. Money

While this is definitely not the most important factor in retaining talent, it is still important. If you pay your employees a great salary but don’t offer any of the other incentives (freedom, activities, recognition and stuff), they probably won’t stick around long. More and more people are valuing culture and work-life balance over money. As a startup founder, money can be very tight. Rather than offering huge salaries, work on the other four ways to retain talent and save your budget for one of the many other expenses of growing your business.

5. Stuff

Money is one of the least memorable things you can give a team member. The second it is spent, it out of your employee’s mind. Rather than giving cash bonuses, offer incentives that are long-lasting and will constantly remind your team members of you and your generosity. I have ordered pizzas to my team members’ houses, sent personalized travel mugs and branded T-shirts, etc. Everyone likes surprise gifts or incentives. Consider swapping out your cash incentives with something a little more memorable.

When it comes to employee retention, there is a lot that you as an entrepreneur and founder can control. Don’t worry if you can’t pay your employees massive salaries. You can still build an awesome team by offering a healthy combination of freedom, activities, recognition, money and stuff. Good luck!

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