What is employee retention.?
Employee Retention refers to the techniques employed by the management to help the employees stay with the organization for a longer period of time. Employee retention strategies go a long way in motivating the employees so that they stick to the organization for the maximum time and contribute effectively.
An organization that focuses on improving employee retention gets to keep highly talented and motivated employees who truly enjoy being part of it and are determined to help it achieve its mission and goals. Clearly, keeping your top performers around is a must. That is why we recommend you bring your attention to the importance of employee retention as you lead your team through big changes.
So, as a manager, what are the best ways to support your team through your company’s internal growing pains—and improve employee retention in the process.
Need & Importance of Employee Retention:
Employees who leave abruptly definitely can hurt the company’s growth, especially during the early stages. Finding a replacement, training them can cost a lot more than time and money. It might affect other employees and trigger negativity at work.
In fact, replacing an employee can cost from one-half to two times the employee’s annual salary. On the other hand, companies who keep their employees longer, see benefits beyond hiring and training costs. Your employees are the heart of your business and in order for that heart to keep beating and moving your business forward—you need to do everything you can to keep your employees around for the long term.
Employee retention leads to:
- Better customer experiences
- Consistency and momentum across teams and the organization
- Stronger company culture (which supports employee engagement)
And when turnover is low and engagement is high, companies can more easily attract the right talent for the job. In other words, it’s in your company’s best interest to take care of your employees and find ways to boost retention and engagement at every opportunity.
Here Are Some Strategies To Improve Employee retention :
Provide Opportunities for Growth: To keep employees over the long haul, companies have to provide opportunities for them to grow. Your organization is growing and changing and that presents an opportunity for your employees to grow and change right along with it. Assigning strategic projects that support employee’s career plans, training managers to develop employee’s careers.
Most employees want to improve their job skills and push their careers forward. When employees feel stagnant in a job, like their career is not going anywhere any time soon, they start to look for another job with more promise of advancement.
Showing employees a realistic, project career path is so important for improving employee retention because it gives them a sense of direction and purpose.
Have clear communication: What we mean by opening channels of communication goes above and beyond. It’s about ensuring you have employee surveys and anonymous feedback forms. Establishing open communication within a business will help promote a sense of community and will allow employees to feel valued. By sharing company goals and allowing employees to have their input heard should help staff to feel respected.
Transparency is one of the most effective ways to improve employee retention even though many organization leaders are afraid of it. Be open with your employees about how well your company is performing compared to its goals and be clear with them about what needs to be improved.
Offer competitive pay and benefits: Don’t forget the primary reason why people come to work: to make money. People have bills to pay and dreams to chase. If you don’t pay your employees well, best believe they will find another company will. It should be obvious, but many companies still fail the compensation test when it comes to addressing employee concerns.
Research what similar companies are paying their employees and make sure you are competing in the same range. It may be time to update your pay scale or look into improving your benefits. However, healthy paycheques are not enough – employees want great benefits, too. Once again, market research is important for determining what competitive benefits you should give your employees.
Enhance Teamwork: Employees will only work as a team if they develop personal bonds. When members of a team keep leaving, it will take a long time before the team regroups and works together. To enhance teamwork, consider awarding your employees to improve and motivate team performance. You should encourage all your staff members, not just star players, to contribute ideas and solutions. Promote teamwork opportunities for collaboration, accommodating individuals’ work styles, and giving employees the latitude to make decisions and course corrections, if needed.
Perks: Career development creates the best opportunity to increase wages. A promoted employee expects to be well compensated. There are various options that you can embrace to increase employee perks. You might consider improved allowances and commissions. Beyond regular benefits (such as health insurance, sick leave, retirement packages, vacation time, health savings plans, and so on), offer other benefits that cater to the needs of your employees specifically. Working parents might find flexible work schedules and childcare options attractive; some might like sabbaticals; others might like gym memberships, profit sharing, or other financial incentives. Ask for your employees’ input and listen to their suggestions.
Feedback: Provide your employees with the training they need to develop themselves within the organization. Providing proper feedback is also crucial to retaining your top performers. Any human, especially employees need feedback to upgrade or improve their work. This includes both positive and critical, or constructive advice. It’s also good to allow employees to give feedback to the company as well. Gathering employee opinions and then making changes based on their feedback lets them know that their input is valuable and useful. Your employees may have powerful ideas for your company on improvements or innovations that can really help you. When employees know that the company cares about their ideas, they will be more invested in the suggestions that they give.
Increasing your employees’ retention rate will result in a better-performing organization. In the long run, lower turnover rates mean less money spent on hiring, training, and development. It will also mean keeping your high-quality employees who have already proven to be great performers within your organization. Not all of the above may be relevant to every business, but building a place where employees are respected and feel as though they operate in a transparent environment, are some basic ways of achieving long-term commitment. It’s inevitable that some team members will leave your organization sooner than you’d like. But you can at least make their decision a little tougher. And if those employees leave your firm knowing they were valued and supported, they’ll likely say good things about your business and, perhaps, even come back to work for you one day.