Top Employee Retention Strategies for Your Company
Creating a highly engaged workplace starts with having efficient employee retention strategies. Read further to understand the top employee retention strategies.
Nearly 70% of companies report that employee turnover has a negative financial impact due to their cost of recruiting, hiring, and training a replacement employee and the overtime work of current employees that are required until the organization can fill the vacant position (BLR). It’s been estimated that a lost employee can cost between 7 to 9 months of the employee’s salary on average that’s why there’s a clear need for employee retention strategies.
Employee turnover and staff retention is a major issue that needs to be addressed, and there are many factors at work, including generational factors, the economy, sweeping changes in the workplaces, and more.
Top Employee Retention Strategies
A successful employee retention strategy requires you to thin the team’s point of view. No two employees are exactly alike, of course; each has their own desires and goals.
1. Give More Positive Feedback
Positive feedback should be given frequently to motivate employees which gives them the determination they need to do their best work. But constructive and corrective feedback is also important when there’s an urgent issue that needs to be nipped in the bud.
Moving forward, become more aware of how many negative comments you’re saying to your employees in ratio to positive comments. Move the ratio towards 6 positive comments for every negative comment.
2. Communication and feedback
Similarly, Keeping open lines of communication is a formal way of describing a practice that’s essential for employee retention. Your direct reports should feel they can come to you with ideas, questions, and concerns, and they expect you to be honest and open with them about improvements they need to make in their performance. Make sure you associate with each employee on a regular basis and don’t let performance issues build up.
3. Mentorship programs
Pairing a new employee with a mentor is a great element to add to your continuing onboarding process. Mentors can offer guidance to the 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. Employees’ work supervisors shouldn’t double as mentors, however.
4. Importance In The Workplace
Now more than ever, people are looking for respect and value at their jobs. They don’t want to feel devalued or unimportant within a company, which can result from a lack of respect. A culture of respect can be promoted by implementing many of the strategies including feedback, recognition, encouraging creativity, collaboration, and so on.
It is also essential to permit your team members with the tools and resources they need, and demonstrating kindness and thoughtfulness can also go a long way.
5. Employee compensation and perks
It’s absolutely essential in this competitive labor market for companies to offer attractive compensation packages rather than taking advantage of it. That includes salaries, but also bonuses, paid time off, health benefits, and retirement plans. Every employee should be fully aware of the benefits they receive from your organization from the beginning.
6. Earn The Trust Of Your Employees
Employees perform better when they trust management and the people assigning them tasks i.e. their managers. They are more likely to achieve the goals that are set for them when they believe in the person that’s getting them to do the work.
46% of employees stated that a lack of clear managerial communication is driving them to seek new employment.
As you’re looking to create more trust and trying to connect with your employees, it is necessary to emphasize honesty and transparency, motivate your team members, give credit and shoulder blame, avoid favoritism, and demonstrate competence in your work.
7. Recognition and rewards systems
Every person wants to feel appreciated for the work they do. Make it a habit to thank your employee when they go the extra mile, whether it’s with a kind email, a gift card, or an extra day off.
When you show your sincere appreciation to employees, explain how their hard work helps the organization. Some companies set up formal rewards systems that motivate great ideas and innovation, but you can institute recognition programs even on a small team with a small budget.
8. Encourage A Healthy Work-Life Balance
Many organizations have high expectations for their employees. But for workers, this can mean less time is devoted to their personal care, leisure activities, and family. OECD found that roughly 12% of employees work very long hours in the United States.
Expecting staff to regularly work long hours and be at your beck and call is not advantageous to employee retention in the long run. A healthy work-life balance is essential for job satisfaction, and people need to acknowledge that their managers understand they have lives outside of work.
9. Promoting teamwork and collaboration
People working in teams are always more productive than working alone. Also, collaboration leads to the sharing of ideas and innovation. This also creates camaraderie amongst the team members and they feel more connected to work, and the workplace.
Promoting a work culture where teams with diverse composition drive projects are not only beneficial for the professional and personal growth of the individual but also has a positive impact on the business bottom line.
10. Avoid Sudden Changes In The Workplace
Every workplace has to deal with change and in some cases it is inevitable, and staff will look to leadership for reassurance. If your organization is going through a merger, a layoff, or another big shift, keeping your staff as informed as you can help you manage the rumor mill.
Make big announcements face to face, either individually or in a group meeting, and make sure you allow time for questions. Change may be inevitable, but it can also be very stressful. But forcing too many changes too soon can affect employee retention and lead to trust issues with your organization.
11. 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 important. An exit interview is asking a departing employee about his experience at the company and his reasons for leaving. This process can help throw light into things like toxic management practices, departmental conflicts, etc if they exist, and can come up with solutions to solve these issues.
12. Providing Leadership Opportunities
Many employees feel they are capable of contributing a lot more than their assigned job roles. Allocating them with the right tasks, opportunities and responsibilities can increase employee satisfaction. Consequently, you will see an increase in the level of employee retention.
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