As much as possible, companies should prevent employee layoff or exodus. For one, it shows unresolved issues in the organization. Second, it is costly to hire new employees since the company has to spend more funds for training. Third, it does not make any organization stable.

But how do you exactly retain employees? Does it have to involve money all the time? The answer is actually no. Here are the 7 most effective ways to retain employees.

1. Develop expectations.
Even before you hire employees into the company, make sure that both parties are aware of each other’s expectations. This way, you know what makes the employee happy within the organization and at the same time he or she has an idea how to get the rewards he or she deserves.

2. Come up with something more.
Be extra generous when it comes to fringe benefits and compensation packages. For example, you can extend health insurance plan to the employee’s family. You may also help them set up their retirement or pension plan, as well as get them to stock options. When they know a lot are at stake, it will take so much effort at their end to leave the job and give it to somebody else.

3. Conduct a 360-degree feedback.
Any company performs employee appraisal. You use the information for promotion, demotion, and transfer. However, do not leave the task to managers and supervisors alone. Give everyone a chance to speak up and share opinion. Through the 360-degree feedback, the employees can also rate their department heads.

4. Increase your workers’ knowledge and skills.
As mentioned, money is not the sole reason for working and staying in a company. Many employees want to feel a sense of growth. It allows them to look forward to something new and makes them feel useful to the organization.

Make it a point to develop training and development programs according to their level of learning and skill. These plans should be in direct relation to the career path they want to take.

5. Hire a human resource manager.
You can do this once you have 100 employees or more. By this time, you can no longer keep tabs of your employees’ performance or even take time to evaluate the applicants properly.

6. Reduce workplace conflict.
Conflict among employees leads to stress, absenteeism, poor performance, and ultimately, resignation. You can reduce this problem by maintaining open communication, designing teambuilding activities, and establishing fairness to all.

7. Allow your workers to shine.
Give them a chance to take on a role that is new and huge. This way, they will feel challenged and forced to test their limits and appreciate their efforts. For example, you may ask an IT staff to develop a new database for employee profiles.