10 Employee Retention Strategies That WorkReading Time: 4 minutes
We live in a complex world and the job market is no different. It takes longer to hire an employee nowadays. 31 days on average. 18 months after, the employee leaves. This is especially true for an employee from a younger generation who tends not to stay for long. These come from research conducted by Glassdoor. Yes, this paints a grim picture. Employee turnover is a big problem. It is costly and harmful to any business. On the other hand, it is worth focusing on employee retention as it saves time and money, and among the side benefits, it creates more inclusion and diversity. To address these difficult challenges, and assuming that employees are the employer’s most important asset, here are 10 effective and affordable employee retention strategies to consider.
But first, let’s look at this issue from the perspective of job seekers and employees. Why do employees leave? 3 main reasons. As Glassdoor shows, they leave for a better position; better culture; and better pay. What do job seekers look for? The top 5 things are: fair and competitive pay and benefits; career opportunities to grow; opportunities to be promoted from within; positive sentiments from employees; and a good business outlook.
Ensuring that the hire is a good fit from the get-go is cost-effective for both the employee and the employer in the long-run. Candidates who know more about the employer they apply for, once hired, tend to stay longer. To help make this happen, it is important that job seekers have easy access to the following information about the organization: employer’s ‘about us’, mission and objectives, core values and culture.
Establishing a structured onboarding process with new employees can help them stay longer in a company. It shows that the employer cares about how they get properly set up into their respective roles with clear indications of what is expected from them in order to succeed. For a new employee on the first day, it feels good to feel welcome. Starting a new job in a new environment can get overwhelming, so it is good practice from the employer to plan an onboarding process. Planning their first days is a way to facilitate the transition.
For example, you should introduce new employees to their coworkers and managers. You can plan for them to receive formal training. They should be provided with reading materials to make sure they are brought up to speed and understand their duties and priorities, or shadow a co-worker to show how their team internally operates and learn about the culture of the company.
Make sure they have the proper tools to best do their work. Do employees have everything they need, like the right work station, software and applications? Do they know where things they might need are, like the manager’s office, who to ask for help, office supplies, the photocopy room, the closet, the kitchen, their parking spot, etc.
Competitive Salaries And Benefits
Salaries and benefits are understandably one of the most important reasons why people work. Employees tend to look elsewhere and leave when they are unsatisfied with their salaries and benefits. Decent compensation is a powerful incentive to retain employees.
Giving praise for a job well done is another effective strategy to help keep employees. Showing appreciation doesn’t cost anything and goes a long way. For one, employee recognition is a great way to cultivate a positive culture in the organization. To many employees, support through encouraging words can motivate them to keep doing a good job and do better. Whenever an employee takes part in a meeting, asks good questions, spots an error, suggests a solution, delivers a project on time, steps up, puts in the effort, pays attention, reacts promptly, holds the elevator door… there are so many opportunities to thank them, reward them or highlight a specific and positive action they did. When constructive feedback or negative comments are needed to avoid the same mistake in the future, make sure to clearly explain why it is wrong. Employee recognition can be celebrated in small or big ways and should be frequent.
As a matter of fact, one of the main reasons employees quit include lack of communication between employees and management.
Employees appreciate being respected and heard. Providing a space for open communication, like an open-door policy, is another effective way to build a positive culture and creates a work environment in which they feel safe to voice their concerns, ask for help or make suggestions to do a better job.
Feedback From Employees
Asking employees for feedback can play an important role in the success of the company and on individual performance. Include your employees’ input in business strategies and encourage them to be part of the decision-making process as the success of the company they work for can be a source of pride as well as a strong incentive for staying.
Progression In Sight
Sometimes, daily tasks can be repetitive and boring. The monotony can take a toll to a point where employees will consider leaving. As mentioned in the beginning, employees jump ship when they can’t see clearly how they can progress from their current position within the company. Glassdoor found that role stagnation is among the top reasons why employees leave. Allowing for career path progression and career mobility within the organization in which they can feel comfortable changing positions will greatly help with employee retention.
Employees have good reasons to stay when their employer offers learning opportunities. Giving opportunities to grow in their field of expertise, develop and acquire new skills is important to them. These can be done through workshops, online books and courses, seminars, etc.
Team Building Activities
Activities related to work or just for fun help strengthen bonds between team members and employees to their employer, on top of maintaining the company’s culture. Team building activities can be designed specifically to improve one or various areas like communication, team work, decision-making, leadership skills, adaptability, and problem-solving skills.