Employee Retention Strategies for Your MSP Business
The largest investment of your MSP business is likely going to be personnel. A tech professional will cost you around $50k a year— that’s a million bucks in 20 years. You’re more likely to have professionals at around $80k annually. Hopefully, expertise facilitates value in excess of cost, but if you must fire (or they leave), you’re going to absorb a loss. In an applicant’s market, retention strategies are key. Consider these tactics:
Your MSP business needs to be careful to avoid being vague. If the duties of your workers aren’t clearly defined, and their work comes under scrutiny, this may cause a reaction which leads to them leaving your business. In a concept, defining expectations “keeps you both honest”. If they’re trying to shirk, you point out the baseline in expectations. If management pushes them unfairly, they likewise deign to expectations and negotiate.
Quality in Management
Management needs to be qualitative. It’s got to take into account where your employees are coming from, and it needs to operate with strategic fairness. You need to address employee concerns, and you need to be realistic. Don’t push employees harder than is reasonable or allow too high a level of inactivity.
Allow Employees to Contribute
If you have someone trying to contribute, let them. Provided their idea doesn’t undermine operations, allow them to take on the additional work of implementing a contribution. If it is truly good, it will last. If not, the employee will realize it’s unsustainable and abandon it. Either way, the outcome is better than the consequences of abrupt dismissal.
It’s not often the job that makes people quit— it’s the issues with management. Giving a clearly defined job to someone where they can rely on their superiors to be fair, and even contribute from their own skill sets, allows employees to truly put themselves in the work. An MSP business that defines expectations, manages qualitatively, and allows contributions will give employees good reason to stick around.