Withdrawal and employee retention remains one of the biggest challenges facing entrepreneurs today. A recent Megaphone of Main Street report by SCORE on employee engagement found that 60.7% of small business owners rank hiring the right talent as their main challenge, and 45.8% say that retaining existing staff is difficult. Another 33% of small business owners say employee retention and motivation is an “issue of concern.”

Of course, there are important reasons to retain staff. Long-time employees have a lot of institutional memory of your customers' likes and dislikes, which helps create a better customer experience. Employee retention also helps cement staff loyalty, improves morale and increases productivity.

Replacing an employee usually has a high cost. Society for Human Resource Management (SHRM) Assessments. replacing a member of staff it costs about $4,700. Others estimate that the cost of replacement is three to four times the salary of the position – so keeping your current team will most likely save you money.

Connected: How small businesses can master a complex labor market

The power of active listening

One way to combat “rampant job switching” is to “be a good listener,” according to Boris Groysberg, a professor of business administration at Harvard Business School, and Robin Abrahams, a research associate there. Writing in the Harvard Business Review, they say, “Employers who they fail to hear and thought to respond to the concerns of their people will see greater turnover. And given that the highest turnover rates among top performers can take customers and projects with them and the front-line employees responsible for the customer experience, the risk is clear.”

So what exactly is it? active listening? Typical listening involves understanding what the other person is saying. Active listening involves conveying “interest, engagement and care” to the person(s) you are talking to.

Groysberg and Abrahams say there are three aspects to active listening:

1. connoisseur: Paying attention and understanding everything that is said.
2. Emotions: You should remain calm and compassionate during the conversation and manage any emotional reactions, such as annoyance or upset, that you may feel.
3. of behavior: Show interest verbally and non-verbally in what is being said.

Active listening is especially important in hybrid and virtual workplaces, where most conversations don't happen face-to-face, but over the phone or via videoconference. At the beginning of the Covid-19 pandemic, when we had to send our rapidly expanding workforce home, I realized it was more difficult to communicate expectations, share our updated mission and purpose, and get honest feedback from our staff. Sometimes, it felt like we were talking to each other.

Connected: Why active listening is a critical skill for founders and entrepreneurs

How I learned to be an active listener

I have always been proud to be one good listener — comes with the territory of being a mother of four. But my listening skills seemed off. Then I remembered that I learned about active listening in law school.

• Participating in class discussions, courtroom exercises, and legal clinics taught me the importance of focusing on what people are saying, understanding their message, and responding appropriately.
• Effective listening helps us think critically and analyze complex issues from multiple perspectives.
• Law School taught me the importance of listening SENSITIVE and acknowledging the emotions and concerns of others. Empathetic listening helps build trust and rapport, which can be key to retaining good employees.

Going to law school was a valuable training ground for me. It made me a better listener and gave me the foundation to build several successful businesses. I understand that most business owners don't have a background in law, but that doesn't mean you can't apply these essential lessons.

How to become an active listener

Being an active listener requires conscious effort and consistent practice. Groysberg and Abrahams say that one of the most important things you can do as an active listener is to “repeat people's last words back to them.” They say it “makes the other person feel heard, keeps you on track during the conversation, and provides a pause for both of you to collect your thoughts or recover from an emotional reaction.”

They also say that one of the ways people get off track in a conversation is by offering nonverbal cues when you're uncomfortable with them. If you're so focused on trying to look people in the eye, then you're likely not listening to them. But it's important to pay attention to nonverbal cues, such as tone of voice, facial expression, and body languagegiven by the person you are talking to.

Another key to being an active listener is to borrow a trick from journalists and ask more questions than you think you should. Groysberg and Abrahams say this makes the person(s) you're talking to “feel heard, makes sure you fully understand their message, and makes sure details aren't overlooked.”

Finally, don't formulate your response while the other person is still speaking. This will take you away from really listening to what they are telling you.

Connected: The art of active listening requires leaving your ego behind

Increasing employee engagement

A recent Gallup poll on employee engagement finds that, compared to 2020, today's employees feel more disconnected from their work, have less clear expectations, experience lower levels of satisfaction and are disconnected from their company's purpose. And most don't feel like anyone at work cares about them as people.

This mirrors SCORE survey results showing that 62% of business owners say it's a struggle to keep employees engaged and productive.

One of the benefits of active listening is that, by boosting morale, it can directly contribute to creating a more cohesive team in your small business. When your team feels heard and understood, they become more loyal, engaged, motivated and productive, helping to drive your small business to long-term success.