Keeping employees happy is the most obvious way to retain staff. This can keep performance at a high level and even attract new, valuable candidates to the business. There is a huge money-saving implication for your business in retaining staff; for example, consider that training and recruiting a permanent customer service advisor in a call centre can cost anywhere between £10,000 and £20,000, so the money you can save by maintaining a good workforce could be vital to your business.

Salary and location of work are the two most common motivators named by workers. However, these two alone will not ensure flourishing productivity and high staff retention. There is no universal recipe for a happy workplace, but there are some guidelines to keep in mind. Read this set of top tips produced by SmallBusiness.co.uk and training and development company Dale Carnegie:

Know your people – Everybody is different and everybody responds to different incentives. For some, a company night out seems like a perfect idea, it can help build a team who recognise each other’s strengths and develops a high level of trust. For others, a night out may mean precious time away from family and presents a situation where they risk alienating themselves from the team if they don’t attend.

Know your people’s personal circumstances and, as far as you can, their personality. Listen to what they say and they will tell you exactly what it is that motivates them - what makes them get up in the morning and give their best.

Give praise – It doesn’t cost anything, but praise makes a huge difference. A simple ‘well done’ from a manager can work wonders. We tend not to express praise often enough, but praise can do no harm. Make a conscious effort to use it at every worthy opportunity. However, it is critical that as a manager you make sure you don’t only praise your favourite members of staff, as this can have a negative impact on the rest of the team.

Offer Rewards – Don’t leave reward down to the personal satisfaction of the employee, but reinforce it with perks. This helps make the focus on achieving targets stronger. Again, it is important to remember that people’s needs differ. Tailor your rewards to the person or even let them choose, within reason. Show your staff how valued they are in the organisation. You may decide to reward people individually or give out a team award. We all like to be reminded of how important we are, as long as it’s sincere, and remember, rewards don’t need to be hugely expensive. How about giving someone a half-day off on a Friday?

Create opportunities for development – No matter how exciting; everything loses a bit of colour if it’s done often enough. Create opportunities for embracing new tasks and responsibilities, and give people occasion to stretch themselves and create space for further development. Delegate managerial tasks to subordinates and allow people to shine. The level of skill and knowledge in the company will increase and your staff will feel challenged and more excited and enthusiastic about their part in the organisation’s success.

Communicate – Bad communication is one of the most common reasons for misunderstandings or even arguments in the workplace. Lack of clarity leads to frustration and bad time management. Make sure feedback is welcome and that there is time for questions after a briefing. If your staff feel at liberty to discuss a task in hand, they are less likely to feel left out in the cold.

Small things make a big difference – A simple ‘how was you weekend?’ changes the atmosphere in the office; be interested in other people, put the date of their birthday in your diary, try to remember the names of their children, even their hobbies. Make the environment a friendly one, so that people want to come to work.