5 Great Employee Retention Practices
Nov 07, 2022 · 8 mins read ·Employee Retention
When the pandemic was at its worst, employers and employees were all seemingly lost.
Uncertainty reigned during corporate closures, industry-wide downturns, and widespread layoffs or reductions in pay and benefits. Many employees then were grateful to have jobs still—that’s how insecure jobs were.
Those fortunate enough to keep their jobs believed it would be too risky to switch to a new position with a different company.
Others found that the pandemic posed personal difficulties that made it inappropriate to seek significant changes in their careers, such as caring for sick family members, dealing with their own illness, or taking on more childcare duties while working from home.
However, we’re now past the worst of the pandemic. What has changed?
A glimpse into the “Great Resignation”
There is undoubtedly a pent-up yearning among employees for good change after several years of remaining put and waiting to see what would happen next while frequently living in survival mode and under great stress.
These workers may have been dissatisfied with some aspects of their work. They might have been disappointed with how their employers handled the pandemic's effects on their workplace. So, they chose to switch.
Employees who decided to leave their previous jobs cited that higher compensation, better benefits, and a healthier work-life balance helped them choose to jump ship.
Burnout is also a common reason employees leave or take a break.
Many people report feeling less engaged and connected to their workplaces. Many companies have disregarded their workplace cultures or allowed frequent interpersonal connections and employee appreciation to decline due to the rise in remote operations.
As a result, loyalty among the workforce might have suffered.
The cost of employee turnover has already surpassed the staggering 13-digit mark, making it clear that staff retention is not simply a human resources issue but also a business one.
According to a Gallup study, U.S. companies now have a $1 trillion problem. Risk-taking employees are abandoning their jobs in droves, encouraged by a robust economy and historically low unemployment rates.
With a skyrocketing turnover rate, should a business owner look for ways to succeed in motivating disengaged employees? Or should they forge ahead and hire new candidates?
Why is it important to boost employee retention?
It might be easier to start with a clean slate, but high attrition rates are usually a red flag waved by the employer and not the employee.
Why? It’s mainly because employee retention is directly related to the company’s culture.
At its core, employee retention is about maintaining talented and productive individuals and reducing turnover by building a favorable work environment to boost engagement, expressing gratitude to workers, offering competitive compensation and benefits, and promoting a healthy work-life balance.
Maintaining high-quality employees is essential for encouraging organizational growth.
Finding, hiring, and onboarding new staff is time-consuming and costly. Additionally, high turnover rates have a detrimental impact on the output and morale of your team.
The mass exodus of employees became a severe headache for business owners. Moreover, it proved difficult to cope with the turnovers—adopting efficient retention tactics is now more critical than ever.
5 Ways to boost employee retention
Candidates with in-demand talents will likely find new employment quickly, even though the labor market favors employers in some industries and places. Many businesses continued to hire throughout the pandemic, and many more have accelerated hiring in recent months.
To keep up, you must act quickly to strengthen your employee retention strategies.
Any employee retention plan must take employee engagement into account. To get started, we rounded up five of the best employee retention practices:
- Have a competitive salary and benefits package
When your employees have access to benefits and perks, they are less concerned about the cost of living and can purchase more of the items they enjoy. Combined with competitive compensation, this can help your business stand out from the crowd and recruit top talent.
Employers must continuously review and revise salaries to provide their staff competitive compensation, which is vital for business success.
Even if your company cannot raise salaries now, consider whether you can offer additional compensation, including incentives. Also, remember to enhance retirement and health benefits, which can increase employee job satisfaction.
Offering others perks can also help your company stand out to potential new workers, re-engage your present workforce, and raise morale among staff members. Flexible schedules, paid leave, and remote work options are benefits many professionals value most
2. Recognize and reward top performers
Everyone desires to feel valued for their efforts. An employer's appreciation can have a particularly significant impact on today's flexible workforce.
Rewards and recognition are fantastic ways to show your team members that you appreciate what they do and how much you value their contributions. They also serve to reinforce excellent behaviors. In addition to making an employee feel good, praising their work strengthens the cohesiveness of the workplace.
3. Upskill your employees
Training your staff boosts engagement, motivation, and employee satisfaction. As a result, they'll get more invested in your company, so they will likely stay longer.
As institutional knowledge stays within your organization, upskilling your workers lengthens the employee lifecycle and keeps you ahead of the curve. For your learning programs to best benefit your employees' development, gather feedback on the kinds of training they will find most useful.
4. Offer flexible work arrangements
Even though they have reopened their offices, many businesses know that some of their workers still choose to work remotely, at least part-time. Lack of that choice might even lead to resignations from staff.
Employees who work flexible hours or locations can better manage their personal and professional lives. For some businesses, this might take the form of a worker working from home a few days each week or spreading their hours across several days.
5. Foster collaboration and teamwork
Your staff should be encouraged to offer suggestions and solutions, not just the top performers. Encourage cooperation by providing opportunities for collaboration, taking into account each person's preferred method of working, and giving everyone the freedom to decide and change course as necessary.
A widespread misperception is that a retention plan is only necessary for companies during substantial voluntary employee turnover. Nevertheless, despite having a low turnover rate, many prosperous businesses go to tremendous lengths to retain their workforce.
Strategies for keeping employees happy have a ripple effect. They not only encourage employees to stay with your business but also raise productivity and encourage greater engagement, both of which lead to more income.