One of the more significant struggles companies face is employee retention. According to an SHRM survey done in 2016, the average cost per hire amounted to more than $4,000. Judging by the financial aspect alone, anybody can infer how disastrous losing top talents can be. Countering this problem is accomplished through various strategies, each one designed to retain the best workers while finding new ones. Before getting into the nitty-gritty details, let’s first define what employee retention is, shall we?
Employee Retention and Its Importance
Employee retention is the company’s ability to keep long term employees. This relates to the efforts of management to sustain and prevent their human resources from jumping ship to other companies. Ther are many reasons why employees resign and leave. The way to go about this is to, first and foremost, meet the needs of the employees. By doing this simple but challenging task, you can begin the process of keeping those whom you want to keep. And yet, that’s just the tip of the iceberg. It’s the masterminding of various HR plans that will help you achieve what you want.
Employee Retention Strategies
You are about to reach the peak of your company’s success! Here is a checklist of the different strategies for retaining your company’s most valuable assets—your employees.
Hire the Right People
Quality over quantity—this is an essential standard in hiring the right workforce. A thorough screening process is necessary to see if applicants are fit for certain jobs. Hiring mediocre people just for the sake of filling the vacant job positions invites all sorts of terrible results. Employees who don’t have the quality of talent you require will feel pressured and may fail in the long run. When push comes to shove, they will quit because of distress. Hire people with the right potential and skill competency. Those are the ones who can handle their roles without too much trouble, which will save your company both time and money.
Offer Training and Development for Employees
Training and development programs are vital for a successful company. By expanding the knowledge of the workforce, they also reach their fullest potential. When employees are confident with their performances, they feel satisfied with their jobs. These programs also have the added benefit of allowing the company to acquire future leaders internally.
Encourage Open Communication
One of the reasons why good employees don’t last is because they don’t feel important. Their issues concerning management or their co-workers are never heard. These employees may have suggestions that will lessen their struggles at work or in facing customers. Unresolved issues result in toxic relationships in the workplace. Acknowledge that their concerns and suggestions are valuable; in doing so, you will gain their trust and respect. They are also more likely to stay longer in the company because they know management cares for them and what they have to contribute.
Give Rewards and Recognition
For outstanding performance management, the employees must receive rewards and recognition from time to time. 90% of employees who receive recognition from their boss give trust in return, as stated by Forbes. Trust in the management drives the workers to keep up the good work or do even better. It motivates healthy competition as well. Rewards, on the other hand, come in the form of bonuses, variable pay, profit-sharing, and stock options. Bonuses are seasonal, but still drive employees to perform better. Variable pay, profit-sharing, and stock options offer long-term motivation. These rewards are based on the performance of the company. Nevertheless, both rewards and recognition inspire and drive employees to commit to the enterprise.
Setting milestones for your company, such as employee anniversaries or outstanding sales, inspire the workforce to work hard and stay longer in the company. Milestones also serve as your employees’ references for future leaders of the enterprise. Employees will recognize and respect your best and loyal talents when you give them more substantial responsibilities. Celebrating milestones also make workers feel valued by the company.
Provide Good Work-Life Balance Opportunities
When employees have a balanced life, they can leave personal problems at home because they have enough time to deal with them. Moreover, they get to enjoy time with friends, family, and themselves despite the hectic days at work. Give employees a regular schedule or at least meet them halfway. Through work-life balance, you get a low rate of stressed workers—and remember: happy employees stay committed. That said, this is an excellent step to increase employee commitment.
Cultivate a Healthy Work Environment
A healthy work environment means a health-conscious and peaceful workplace. Encourage proper hygiene and sanitation for good health. Exercise healthy competition and open communication to maintain good relationships. When you don’t drive away workers from physical illnesses and emotional turmoils, they will drive away from your company instead.
Promote Effective Teamwork
Effective collaboration leads to defined responsibilities, resolved conflicts, and clear communication. To have effective teamwork, support team outings, and activities that will strengthen the bond of employees and managers. Events like these will give workers the confidence to share with managers their professional struggles and suggestions. Also, team bonding inspires positivity and motivation—which lead to professional and personal accomplishments.
Offer Attractive Perks
Unique perks don’t only attract the best applicants. These also give your top talents more reasons to stay in your company. Before offering attractive perks, it is essential to have an idea of what the competitors offer their employees as well. Perks like free classes, gym memberships, discounts, or even dining options will excite the workforce. Providing a life plan and health benefits also show that you care for the future of your workers and their families. Your employees won’t leave your table if you serve better food.
Conduct Stay Interviews
The goal of stay interviews is to pinpoint the strengths and weaknesses of the company’s employee management. In these interviews, ask what keeps your workers working for you. Ask what motivates them and whatnot. Also, these interviews can help you learn if they ever thought about leaving and what made them change their minds. After the survey and evaluation, you will see what you need to keep up or need to improve in the management to retain employees.
Employees leave companies either voluntarily or involuntarily. They embark on their own free will when their needs and wants aren’t met. They also get terminated when they are no longer productive and effective. To ease the employee turnover rate, you have to step up your game. Employee onboarding, continuous training and development programs, unique perks and benefits, and a healthy and happy workplace will let you win the talent war.