According to a survey by Achievers, only 33% of employees plan to remain in their current employment, while 52% will seek opportunities elsewhere after compensation. These figures are a worrying trend as high turnover rates are very costly for your business. Also, the shortage of top talent in most industries further compounds the problem as replacing is also a big headache for HR.
Companies with low turnover are more likely to meet their set goals. A lot of work needs to be done to improve retention rates and safeguard the success of your business.
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Employee retention strategies
While you may not prevent those who have already decided from leaving, you can take measures to ensure your current and new employees stay longer. The following are options that your business can adopt to improve retention rates.
1. Better recruiting and onboarding
The recruitment process is the first step to high employee retention rates. Identifying what you need in a preferred candidate will help you find suitable matches. Also, look for candidates who are more likely to stay. Such candidates show longevity in previous positions, are part of team sports, and volunteer for various causes.
The onboarding process is crucial in improving retention rates. Creating a positive first impression on new hires is vital. Communicate your expectations clearly to avoid role or responsibilities mismatch. You can connect new hires to teams to help orient them as building relationships with coworkers.
2. Training and professional development
Learning new skills and the opportunity for career advancement are great incentives to make your employees stay longer. But if you keep on bringing in people from outside the company when career development opportunities arise, your retention rate will dip. Employees will not stay in an organization where they do not see a future.
Human resources should develop an in-house training and mentorship program according to the needs of the business or leverage outside training like workshops, seminars, online courses, etc. Such initiatives are enough to make them stay.
3. Better communication
At all levels of your business, there should be clear communication on what is expected. Internal communication is a critical element in employee retention rates. Keeping communication lines open ensures all employees can ask questions when needed.
Top-level management needs to communicate to the employees about the company’s state. Managers can do this with help from digital signage. Place most updates on the screens as everyone can see them, even those without desks.
4. Work-life balance
Many people exit a company after a short time because of a terrible work-life balance. Most will give up even part of their salary to move to a job with a better balance. While finishing your share of the work is important, avoid burnout. Employees will move to the next company where the work environment is conducive.
Ensure the scheduling is balanced for all employees. Give time off to those who have been working the longest hours.
5. Competitive salary or wage
You need to review your salary and wages to ensure you are not underpaying your workers. If you do, you will keep losing your best employees. Ensure you align with the industry standards as people want to know they are reimbursed the same as their peers in the same roles.
The salary should be enough to cover their cost of living while also giving them employee satisfaction.
6. Create a culture of feedback and recognition
Giving positive feedback to employees is a great way to make them feel valued, while corrective feedback is also encouraged to improve their performance. But you should also ensure you get feedback from the employees on issues such as company culture. By implementing the suggestion, you demonstrate that their ideas are valuable. This validation will keep them in the company for the long haul.
Recognition of hard work motivates and makes workers feel valued. Peer-to-peer recognition, company awards, or private or public employee recognition are some of the ways you can build this culture.
7. Flexible working
Giving employees a choice between working full-time in-person at the office, fully remote work, or a hybrid, working part-time and at home, may be the tipping point between retaining and losing your best talent. Caregivers may want the option of working remotely or hybrid, especially after the pandemic.
In fact, 23% of remote workers will willingly give up to 10% of their salary, so they don’t go back to the office. Offering the flexibility of schedules or lack thereof may improve or lower your retention rates.
Do you want to improve retention rates? Start by hiring the right people for the job. Give them the best employee experience possible. Ensure they feel valued and appreciated, and they will stay with you for a long time if you are lucky up to retirement. Implementing the measures above will help you increase your retention rates. Which one will you start with?