Creating a highly engaged workplace begins with having effective employee retention strategies.
Employee retention is the company’s goal to keep talented and skilled employees. For lower employee retention, you need to nurture and engage your talent to stop them from leaving.
Employee retention is essential to a company’s success. It doesn’t matter how good the pay is or how well the employees are treated if they leave after only a few months on the job.
What is employee retention?
Employees who feel valued and respected by their employer are more likely to remain with the company. Additionally, employees who have a good work-life balance and feel like they have a good work/life fit are also more likely to stay with their company.
Employers who provide opportunities for professional development and growth are also more likely to retain their employees. Finally, companies with strong cultures and values that align with the employees’ personal values tend to have higher retention rates.
In this article, we’ll talk about the importance of employee retention and some employee retention techniques.
Why Does Employee Retention Matter?
Let’s put it simple: A productive employee who leaves a company hurts the business.
A CAP study found that it costs up to 9 months of an employee’s salary to replace them. Also, consider the time and resources it takes to interview and hire a replacement.
Approx 70% of organizations report that staff turnover has a negative financial impact due to the cost of recruiting, hiring, and training a replacement employee.
Employee departures can also have a negative impact on the culture of teammates who are in the company.
Whenever a coworker walks out the door, people notice. Some might even start wondering if they should look for a new job.
This may lead you to ask yourself: How can I retain employees and reduce employee turnover?
Here are 17 successful employee retention strategies:
Employee Retention Strategies
It’s no secret that employee retention is a hot topic in the business world. And in the years to come, its significance will only increase.
Companies are seeking for strategies to prevent their top employees from leaving as the competition for talent heats up. According to a study by The Work Institute, replacing a worker who quits can cost 150% of that person’s annual salary.
It is no secret that keeping employees on board is a major challenge for companies. In fact, 60% of workers intend to leave their current jobs within the next year, according to a recent Work Institute report.
While many factors contribute to employee turnover, there are some things businesses can do to improve retention. Here are 17 employee retention strategies for 2023.
1. Build a Great Onboarding Process
New employees want to become valued members of the team. That’s where the onboarding process comes in!
The onboarding process is an excellent opportunity to build trust with new hires and prove to them that the company culture you’ve promised them is real.
2. Hiring the Right People
CB insights surveyed the companies and found that hiring the wrong team is the third most common reason startups fail.
You need to assess people on their behavior, mentality, and match your startup’s values. Never hire people with a bad attitude. It only takes one jerk to poison an otherwise stellar team.
Go for candidates with an opinion, people who can honestly explain what they like and dislike and believe in missions, values, and visions.
Recommended Read: How to Successfully Hire Right Talent for a Startup
3. Conduct Career Development Meetings
One of the most crucial employee retention strategies is helping employees in their career development and achieving their goals.
Managers should schedule one-on-one career-focused meetings with their team members. Discuss their goals and needs, ensure that expectations are clear, and check that progress is being made.
Regular check-ins demonstrate that managers care, and allow the employee to bring up any potential issues before they can grow into serious problems
4. Give More Positive Feedback
HBR’s study shows that the ideal ratio between positive and negative suggestions is 5.6 (positive) to 1 (corrective).
You should give positive and constructive feedback to motivate your employees. Some great ways are through handwritten thank you notes, shouting on social media or company groups, etc. These things motivate and encourage an employee to contribute and excel.
Apple’s CEO, Tim Cook, regularly calls out exemplary work done by the company’s global team.
5. Start a Mentorship Program
Mentors can offer guidance and be a sounding board for newcomers, welcoming them into the company. And it’s a win-win: New team members learn the ropes from experienced employees, and, in return, new hires offer a fresh viewpoint to your mentors.
People stay when they have a good manager.
6. Work-Life Balance
It’s difficult to find the right balance between work and personal life to feel good that both areas are receiving enough attention. Provide a work from home scenario and flexible hours where employees with children or adults with hobbies can enjoy life to the fullest, but still get their work done.
7. Respect Employees Ideas and Thoughts
Asking your employees’ thoughts on work-related matters shows that you respect and value their input. Plus, you could end up with some really great ideas that improve your business.
Why not have a suggestion box in a common area where anyone can propose ideas? Or an anon survey where people can submit their suggestions.
8. Build an Employee Recognition and Reward Program
Building a recognition and reward program is about telling them you notice and appreciate their efforts and work. It could be a simple high five or a thank you note or a simple message on social media. Or It could be a company-sponsored outing, a thoughtful email, or a gift card to their favorite store.
When employees feel valued and appreciated, they have a positive perception of their workplace. But keep in mind that recognition has to be done well in order to be effective.
9. Wellness Program
Mentally and physically healthy employees bring an array of benefits to the businesses they work for. Keeping employees mentally, physically, and financially fit is just good business. The employer can offer compulsory employee training, fitness program, staff seminars, or even work with a third-party provider offering a variety of wellness programs.
10. Have an Attractive Leave Policy
Your company’s leave policy has to be compelling for both prospective and long-term employees. It’s also important that you structure it to reward tenure. Many studies show that when employees take time off, they’re more productive because they’ve had time to recharge.
11. Offer A Competitive Base Salary
Your employees want to feel like the effort they put into work is worth their time. When it comes to employee retention, money isn’t everything, but offering a competitive salary can help your people feel like their work and time are valued. One of the primary reasons that make employees quit is the lack of compensation.
Review current wages, and determine if you need to make any adjustments to be competitive.
12. Parental Leave
Companies are expanding and improving their parental leave policies in different ways. Increasing parental benefits for mothers and fathers has been shown to have positive outcomes for employees, their families, and their employers.
13. Conducting Exit interviews
Sometimes letting go of an employee is inevitable. Hence, conducting exit interviews just before an employee is about to leave is very crucial. The key to conducting an effective exit interview is to create an environment in which the exiting employee is comfortable providing honest feedback.
You will want to listen carefully to what you are told in an exit interview and make sure you ask many questions. You want to know what caused the employee to start looking for a new job in the first place.
14. Prioritize DE&I
Nobody wants to feel excluded from the group they are a part of. New hires want to believe that their hiring was intentional and that they play a significant part in realising the company’s objectives.
Josh Bersin, founder and principal of Deloitte Bersin found that companies that consciously work on inclusion, diversity, development planning, and leadership development in their culture are more likely to train people to improve performance. They will be able to deal with staff performance issues and will be able to identify and build leaders.
This is just one of the amazing findings about companies prioritizing diversity and inclusion.
There are no short cuts to achieving an inclusive culture; you must adopt a top-down strategy from hiring and management assessment to professional development and performance management.
15. Encourage two-way feedback
Regular feedback and suggestions help you stay in touch with your employees. The impact of Covid-19 was different for everyone. Some struggled to keep their work and personal lives separate. And some experienced workplace loneliness, anxiety, and stress.
You must empathize with your employees during these difficult times and watch over them. This will help you get the pulse of your workforce.
Communicate as often as possible. Ask them what challenges they face with virtual work. Let them know what’s on your mind, so they know they’re not alone.
16. Make sure your employees don’t feel overworked and overwhelmed
Dealing with IT issues or an uncomfortable workspace is never good for morale. And for employees who already feel overwhelmed, taking time off to deal with a broken computer or outdated software can be a major source of frustration.
Employers should work with employees to ensure they have the necessary equipment and tools to work as productively as possible. It is important to ensure that remote workers have the tools to work effectively.
17. Use the latest tools and technology
Don’t make an employee’s job harder than it has to be by keeping outdated tools or sticking with inefficient processes simply because time and money have already been invested in them – this is a cost fallacy and can turn employees away.
“In an ever-evolving industry, employees appreciate organizations that keep pace with technological advances and provide opportunities to further their education,” Kantata Chief Human Resources Officer Gina Hartigan said via email.
The use of modern software and remote tools, especially in technology, can play an important role in how an employee feels about their work and, ultimately, whether or not they stay on the job for a long time.
Here are some real-life examples:
At Springworks, we firmly believe that our team is our greatest asset. Without them, we wouldn’t be where we are today. And we want our team to be happy and feel fulfilled in their jobs.
Employees can earn Zollars or “Zappos dollars” for participating in training by answering questions or volunteering to help out. This play money can be used to redeem Zappos branded schwag, such as a gym bag, desk fan, or water bottle, which is only sold through the company’s internal Zollar Store. Zollars can also be used to redeem movie tickets, or they can be donated to one of the charities that Zappos partners with on behalf of the employee.
Onboarding at Percolate includes a “Buddy system.” It means that each new employee is assigned to a so-called Percolater. A Percolater is an experienced colleague who has volunteered to be the new hire’s buddy.
Lululemon gives employees $25 twice per week to go to different workout classes. The company also offers employees access to local gyms and even reimbursements if certain gyms aren’t covered in their wellness program.
How EngageWith Can Help You In Retaining Employees?
EngageWith can serve as your valuable business partner in your retention strategy. Look for these features to find out how:
Employee pulse surveys help you hear your workforce’s voice. Our pulse surveys help you understand what’s helping—or hurting—employee engagement and take action accordingly, and retain your employees.
Our platform can elevate your company’s recognition, so employees feel appreciated, aligned, and satisfied in their day-to-day job. Make recognition to part of your daily culture.
Company values help keep employees on a clear path to success. EngageWith helps in outlining, documenting, and aligning individual recognitions with company values. It helps your people feel a better connection with the organization.
Anonymous feedback helps both employees and leaders address possible areas of improvement. With EngageWith, you can continue the conversation until the desired needs of the employees are attained.
Know what employees feel about your company by sending a quick eNPS pulse. Gather feedback and take required action to improve your employee experience.
Your retention rate is a key metric moving forward in 2023. Don’t hesitate to take the weight off of your shoulders and let EngageWith do the heavy lifting. Request a demo to see EngageWith in action.
Here are some ways of employee retention without breaking your bank:
– Offer personalized and sincere praise.
– Play fun games or team-building activities.
– Offer flexible working hours.
– Communicate and provide regular feedback.
Here are some benefits:
– Reduced Turnover Hassle
– Reduced acquisition and training Time
– Increased employee productivity
– Better customer experience
– Reduced costs
– Increased profits.
In this guide (above mentioned), you’ll find employee retention strategies and some real-life examples.
Do you have any employee retention ideas that we’ve missed? Let us know in the comment section below.
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Originally published on May 28, 2020 1:17 PM, updated Nov 04 2022