Finding the right candidates is hard enough, but keeping them is even more challenging. It would be devastating to organizations when their employees quit after extensive training and financial resources have been spent on them. Because of this, it is important to consider different ways to retain employees.
According to various studies, as many as 35 per cent of workers are predicted to leave their jobs annually by 2023. With remote work becoming more common, workers now have innumerable options to choose from. Therefore, organizations should place employee retention strategies at the top of their priorities. Effective employee retention strategies are also key to creating a high-performing workplace.
Why is employee retention important?
Employee retention refers to the management’s strategies and tactics to keep employees loyal to the organization for a long period. Well-planned employee retention strategies, enable organizations to motivate their employees to stay with them and contribute to their success.
But why is retaining employees so essential? Below are some thoughts about the benefits of keeping valued employees in a company. Employee retention would entail:
- Reduced effort spent on hiring qualified candidates for your organization
- Greater adaptability to new roles as they are familiar with company standards and regulations
- Increased loyalty to the entire management team and organization.
- Reduced training costs as it takes more time and effort to train new employees
- Improved bonding between colleagues
- Increased revenue for the organization
Employee retention strategies and methods
To foster employee retention, human resource managers need to be creative with a range of strategies. Open feedback channels, appreciation culture, and other strategies can help you improve your retention efforts.
Some of the key factors that can influence employee retention and encourage workers to stay:
- Safe and healthy work environments
- Recognizing and rewarding employees
- Location and schedule flexibility
- Potential for career growth and development
- Good working relationships with the management
- Competitive compensation
If you are concerned that your company will lose important employees or if you want to improve your employee retention strategies, here are some tips that will help improve employee satisfaction and retain top talent.
- Rewarding perks – Building a culture of recognition and acknowledgement of employees’ contributions from time to time is important. Perks can help you stand out to potential new employees, as well as re-engage your current employees. Additionally, they are a great way to increase employee satisfaction.You can send out appreciation words to your employees regardless of whether they are in the office or working remotely.
- Onboarding experience – Your employee’s relationship with your company begins with their onboarding and continues throughout their first year. A good onboarding experience can make employees feel like they’re part of the company. New employees may take at least two years to achieve the same productivity level as a current employee. Hence, it is important to make them feel at ease and competent from the very beginning.
- Performance review and feedback: Regular one-on-one meetings are a great way to discuss your employees’ short and long-term professional goals and help them envision their future. Although you shouldn’t make promises that you can’t keep, it is important to discuss potential professional development opportunities with your team and create a realistic strategy for reaching those goals.
- ESOPs (Employee Stock Ownership Programs) – Giving your employees a bonus or incentive is an effective way to motivate and reward them. Make them a stakeholder of your company and make them feel valued. This encourages them to stay engaged. From the employer’s perspective, it is a great way to preserve liquidity.
- Change of job roles – It can be tiresome and boring to do the same thing repeatedly. Give your employees the chance to work with other departments. This will help generate better ideas, improve the relationships between colleagues, and help them grow professionally.
- Healthy work-life balance – Maintaining a healthy work-life balance is crucial to job satisfaction. It is important to understand that remote employees also have lives outside work. Encourage your employees to set limits and use their paid vacations.
All of the above are fundamental practices that will make your workplace more employee-friendly. It is also important to evaluate your work periodically and stay updated on changes in the market. Employee retention can be improved with knowledge of wages, benefits, and tips on establishing a positive working environment
Factors that impact employee retention
To provide the best employee experience, it is important to have employee retention factors (also known as wellness programs and incentives) in place. Many factors can influence employee satisfaction and engagement at work. Let’s look at the most important aspects of employee retention that modern businesses fail to recognize.
- Flexibility
Employees are increasingly choosing remote working as it allows them to accommodate their family obligations, appointments, and other commitments. A modern employee will not accept the limitations of a 9-5 job and may look elsewhere if you cannot offer them a flexible work schedule. As long as your team performs well and doesn’t require micromanagement, flexibility can be a key factor in employee retention.
- Health and well-being benefits
Promoting health and well-being within your organization reduces stress and allows workers to give their best at work. Companies can show that they care about their employees’ health and well-being by offering benefits such as gym membership reimbursement and health insurance or retirement plans.
- Personal growth and development
The company should have policies that encourage employees to improve in areas they are passionate about. Learning and development should be imbibed into the company culture. It is one of the best ways to keep employees updated and content.
- Robust financials
Financial instability is a major reason for high turnover rates. If you want to reduce turnover you need to ensure that your employees are paid competitive wages. And if you have the resources to do so, you can eliminate uncertainty in retention by paying your employees more than the market rate.
Although employee satisfaction may not be the easiest goal, it is possible to increase your retention strategies without much effort. Even more important, most of the issues discussed here are based on your ability to fulfill the needs of your employees. It may be the key to getting your team closer to the success they desire.
Eight ways to boost your employee retention techniques
A retention strategy is a way to reduce staff turnover and retain the best employees within your company. In addition to reducing recruiting and training costs, these strategies can also increase employee satisfaction. The eight best ways to retain your talented employees are listed below.
1. Provide scope for development
If there is no prospect of advancement, employees will leave an organization. Employers must encourage employees to improve their skills and expand their knowledge at work. Training and development opportunities are a great way to decrease employee turnover.
2. Offer better compensations
Workers often leave because they feel underpaid or don’t get enough perks. Employers should ensure that workers have access to competitive benefits like paydays, flexible work arrangements, health insurance, employee assistance programs, childcare help, and paid time off.
3. Incorporate enjoyable team activities
Organizations can foster meaningful relationships with their employees and give them the attention and belonging they desire. Organizations might consider holding a virtual talent contest or asking employees to share information about their hobbies.
4. Communication Transparency
Open communication is essential for organizations to ensure everyone is on the same page. Open communication channels should be maintained throughout the organization, from top management to workers at the front lines, to ensure everyone is kept informed and encourage participation. Teams and managers should frequently communicate with each other in order to exchange frequent feedback and ensure consistent performance.
5. Use technology resources judiciously
Overuse of technology can lead to burnout. Switch to alternatives like phone conversations or video conference calls instead of sending texts every 30 minutes.
6. Foster generosity and appreciation
Encourage your employees to be socially responsible. If employees are allowed to connect with each other through acts of appreciation and connection, they will be happier, healthier, and more likely to stay at their job.
7. Show respect
According to one study, respect at work is a major factor in involuntary departures. Respect at work will increase employee retention significantly.
8. Develop policies that benefit employees
Allow employees to take one or two leaves of absence per month so they can rest and recharge. Avoid contacting staff on weekends. Human resource departments should lead the effort to celebrate employees’ birthdays and other achievements. All major holidays must be celebrated within the organization to give workers a sense of belonging.
Take Away from Employee Retention
There is always some risk involved in hiring. You might use good recruiting practices, but it doesn’t guarantee the new employee is a good match. Instead of looking for an opportunity to fill a void, you should be looking for the chance to expand your employee’s skills and perspectives. There is nothing more ideal than retaining your existing talents.
Your ability to retain talent will make your employees feel happier and less stressed. In this way, your organization will be able to spend more time and resources on recruiting and engaging new talent in more productive ways.