Wondering why it’s YOUR business that fails to keep the best workers? Well, employees come and go, but the right employee retention strategies will keep them in place.
Because of the COVID-19 pandemic, a so-called “Great Resignation” emerged, which turned the job market upside down.
By dipping into the alarming statistics of the labor market, we spotted Reuter’s report saying that around 186,000 people left the labor force this year, keeping the unemployment rate at 3.7%. Moreover, in 2022 average employment growth has been 392,000 per month, compared with 562,000 in the previous year.
This may have a negative impact on any business’s profitability. High employee turnover can drain a company’s resources and negatively impact the staff’s productivity and growth.
It becomes crystal clear that retention rates are a top concern for CEOs and HR professionals. Many businesses like yours are in pressing demand of practical employee retention strategies to resolve this crisis.
To save you from the rush of running around the web and trying to pick tips that still need testing, we compiled a helpful guide that will assist you in the long run.
Together, let’s find out what works and what doesn’t.
What Exactly Employee Retention Strategies Are
Retention plays a significant role in the employee life cycle.
HR is responsible for ensuring employees have everything they need during each of these stages.
Francesca Gino and her colleagues found that employee-centric onboarding programs, which are focused less on the company and more on the employee, result in greater retention.
Employee retention strategies are well-thought-out strategic steps businesses create within a single procedure that they plan to execute.
These strategic steps are aimed at preventing employee turnover and thus, cutting all the additional costs that come with it.
But how well-thought-out should they be? Those strategies must be tailored to the needs and preferences of the employees in order to be effective.
Keeping employees happy is possible by fostering a culture of fairness and transparency.
Why Employees Usually Leave
It’s simple to assume people leave for greater money, and they do. Salary expectations play a role in an employee’s choice to quit a business, but the problem is more complicated. Let’s examine several aspects.
1. Marketplace tendencies swap.
Industry growth is an underrated turnover rate element. When a market is “hot” (growing quickly), skilled workers are in need. This makes it harder for recruiters to hire and retain outstanding staff.
2. There are management problems.
Poor management may cause angry employees. Employees may feel undervalued and stifled when their manager constantly questions their contributions and refuses to provide them with additional flexibility and assistance. Today’s workers would rather be guided than controlled.
3. Workforce changes, and requirements too.
Employees of previous generations had fewer inclinations to quit their jobs, but today’s workplace has changed, and employers must adapt by recognizing employee needs. This is where innovative employee retention strategies come in. Focusing on employees’ priorities is the key to re-engaging them.
4. Employees don’t develop new skills
When it comes to choosing a company, workers place nearly twice as much importance on a positive culture and opportunities for professional growth as they do on “salary and benefits.” Nowadays, workers anticipate independence in their educational pursuits.
Why are Strategies for Employee Retention Vital for Your Business?
An effective retention plan may boost morale and productivity by keeping workers invested in the company’s future.
Have you thought about what the cost of losing your top talent is? It can range anywhere from half to double the employee’s yearly income, depending on the circumstances.
Besides, new employees may take one or two years to catch up to their predecessors. Thus, turnover is a major barrier to building a high-performing, engaging workplace.
The chief reasons to prioritize employee retention strategies are:
- to restore your exemplary brand reputation,
- to create a workforce that cares about self-growth,
- to cut down on the tedious recruiting and training process,
- to establish a workforce that’s self-motivated to perform better,
- to maintain your best talent!
Strategies for Employee Retention That You Can Use in 2023
1. Assess your turnover
Something many professionals skip doing is examining why employees left in the latest years. It’s crucial to focus on high-performing employees whose departures were particularly costly.
“Remember that departing employees may not tell you the genuine reasons they’re leaving,” says the BDC Consultant Irene Lis. Hence, she believes it’s vital to examine the reasons for the departure.
Think about what you could’ve done that would help your employees stay. Exit interviews with leaving employees can reveal improvement opportunities. Besides, flexible work hours or greater training can make a big impact.
2. Reduce BURNOUT in the team
We all know how it feels, right? It’s important to let your employees know about it. Your workers may be in a burnout not even knowing about it, especially those who are new on the job. It’s your responsibility to let them know that it’s part of the process.
In the 2020 Gallup report, Employee Burnout: Causes and Cures, 76% of employees reported feeling burnout, and 28% said they felt burnout “often” or “always.”
Gallup’s study found that how employees feel about their workload has a bigger effect on burnout than the number of hours they work.
People are happier when they have greater control over their work lives, such as through reduced hours, remote work, or flexible scheduling, and when they are recognized and rewarded for their efforts.
Employee burnout can be reduced by enhancing the company’s culture, improving employee engagement, and developing clear communication and transparency.
3. Find the right talent
Each organization hires differently, but there’s a way for you to be alert and considerate. When you hire individuals with the right talents and culture, you could be more successful.
If you want to learn more about a candidate’s personality, one practical technique is to use behavioral interview questions. Their responses might tell you a lot about who they are as a person.
4. Talk about retention
Genuine and direct conversations always lead to healthier work atmospheres. Don’t assume you know how to keep your finest players. Work has altered post-2020. Today’s retention drivers are typically different; this is your chance to talk about them.
Your leadership team must dedicate time to these one-on-one sessions.
Maintain your presence, be fully ready to listen, and pay attention to the queries raised by your teams. While there are many uncertainties still in place, this is the most important work you can do right now.
5. Create a career path for your employees
To be more precise, make a plan outlining each worker’s next steps in their career and the milestones they must reach to be considered for a salary raise or promotion.
Instilling a sense of direction and purpose in employees by showing them a projected career path is beneficial.
You may boost employee morale and retention by implementing a promotion system that is transparent and fair.
6. Review your work environment and establish a culture of recognition
As part of your employee retention strategy, make sure employees know they are valued. To make it happen, consider implementing peer-to-peer recognition practices.
It is one of the most innovative strategies for employee retention: a technique that gives workers the opportunity to publicly recognize and compliment one another for their contributions to the company.
A culture of recognition can:
- increases your business’s profit and employee performance,
- build loyal teams,
- align your teams and boost your company values.
At Lucky Carrot, we know that each employee matters. We vouch for the culture of recognition that helps every employee to feel like they belong in the team.
7. Alter employees’ responsibilities
Collaboration between departments can help employees understand what every team member does and can bring the team together.
Cross-functional teams allow for the generation of fresh and potentially game-changing ideas. Those kinds of instant ideas can impact the product, the service, and the outcomes of the business.
8. Create programs for learning and development
A corporate training program can contribute to the professional development of employees. You can also motivate them to attend conferences, industry events, and other events to level up your employee retention efforts.
Companies can build learning and development processes and let people explore their interests.
However, if you want these programs to be successful, you need to ensure that the criteria are transparent, objective, and easily comprehended by all of the workers.
9. Help them maintain their work-life balance by offering flexibility
Many work environments have high expectations and strict standards set for their workers. This can mean less family time and less time dedicated to necessary physical or mental restoration.
And although flexibility may not be applied to every business, it’s good to think about any kind of flexibility that is possible to offer, such as flexible lunch hours.
Work-from-home programs, regular work hours, or weekend policies can give your team members the flexibility they need to operate at their peak performance.
A study was conducted by the United States Chamber of Commerce with unemployed workers who had lost their employment as a result of the pandemic to find out what is preventing them from going back to work. Two-thirds of respondents felt that returning to work was difficult or impossible due to the need to be home and care for children. More than a quarter (28%) said their health came before looking for a job.
Offer async communication practices in case of remote work, which can foster deep work hours and better results.
Try to identify overworked employees, give them a break time or offer them to go for a walk. Assess how your schedule fosters work-life balance. Think about how your project plan helps your employees maintain a good work-life equilibrium.
10. Offer decent compensation
Every employee wants to feel appreciated for their labor, and proper financial support can never be underrated by your employees. It’s not all about money, but financial stability is one of the leading motivation drivers for workers.
According to Chron.com, regardless of the field, any employee desires competitive pay. If you pay modest salaries, then high performers will go, and individuals who aren’t as good will replace them.
Analyze the current compensation system to see whether any alterations are needed to keep up with the market.
Organizations can’t survive and grow in a dynamic market without generating profits and achieving success.
For you to retain top talent, you need to create an optimistic work environment based on an employee-centric culture and solid employee retention strategies.
Ultimately, your best approach will be the above tactics paired with a contemporary resource management tool that may help you retain valuable employees.
Employee retention doesn’t happen overnight. It requires consistent initiatives and daily efforts.
Get started today for free with Lucky Carrot!