What is Employee Retention?
Imagine being a human resources manager at a company. You hire a very competent candidate for a crucial project. But due to non-flexible schedules hands in his resignation mid-way. Would that not be an awful situation to be in?
Employee turnover is one of the biggest pain points for hr leaders. This is because a high turnover rate can be costly and disruptive to your company.
There are many factors that contribute to retention of staff, but there are a few key things you can do to keep your staff happy and engaged. By keeping your current employees satisfies, you can improve productivity and reduce turnover rates.
So, come with us to learn more about employee satisfaction and retention.
What is employee retention?
Employee retention is the ability of an organization to keep its employees for a given period of time. It is usually measured by the percentage of an average employee who remains with the organization for a certain amount of time
Employees who retain little to zero directly affect their overall performance. Retention becomes essential for managing and avoiding turnover.
It also makes sense to implement a retention strategy with data-based processes. It is best practice to monitor employee retention rates periodically. Usually quarterly or half-yearly.
Why is it essential to retain employees?
The retention of staff is crucial to preventing loss of business. It costs money to replace employees who leave. When employees resign, they take with them knowledge and experience that can be difficult to replace.
Turnovers can adversely affect morale. It can create a situation where the best employees are the ones leaving, which can further damage morale and lead to a downward spiral in the quality of the workforce.
High-retention work environments usually employ top talent who are more engaged employees. Such skilled individuals bring in the innovation which distinguishes the organization from its competitors.
Engagement with employees can enhance customer relations, as team members who have the time for coalescing are likely more productive.
Employee retention strategies
In order to avoid these turnover costs, companies need to focus on strategies to improve employee retention.
The best way to do this is by creating a positive work atmosphere and offering competitive salaries and benefits to all your employees.
When employees feel like they are valued and appreciated, they are much less likely to look for other opportunities in the job market.
Retaining employees and retaining talent requires long-term commitment in order to formulate good employee retention strategies. It is also essential for a firm to refine its recruitment process or onboarding process so that only the suitable candidates are selected for the available positions.
The following strategies can prove to be fruitful not only in increasing retention rate but also in improving the employee experience.
There are a few ways that job satisfaction can help with employee retention.
If employees are satisfied with their new job, they are less likely to look for other opportunities. This helps in talent retention which is extremely crucial for business development.
Additionally, job satisfaction can lead to greater productivity and motivation, which can also lead to higher rates of staff retention. This is because when a staff member is happy they enjoy working. This is beneficial because it keeps the work environment extremely positive.
Job satisfaction can help create a positive work culture, which can make employees more likely to stay with their company.
Professional development opportunities
Valuable employees and skilled staff are always in search of professional and personal development opportunities. A company’s performance greatly depends on employee development.
Therefore, senior management must come up with seminars and workshops that help them learn new skills.Such opportunities would aid the company’s success, thereby making sure that most employees are satisfied. Hence, reducing the number of departing employee.
Company culture of appreciation
According to a survey conducted on employee recognition, 66% say they would leave their jobs if they felt unappreciative. 65% of people feel unappreciated at work.
Some managers lack gratitude for the work they do for themselves and leave staff members feeling less appreciated. In order to avoid this, the managers must treat their staff as family members. This creates a feeling of belonging which reduces the chances of turnover.
Therefore, an employee retention program must be a part of the company’s mission. This is essential for both new hires and existing employees.
Avoid overworking and overwhelming staff
Given the demand for talented workers and the increased culture emphasizing wellness, only a few workers will tolerate harsh conditions. Therefore, new employees require special attention from their leadership in order to adjust to the office conditions.
The workers must be given deliverable goals which can be completed within working hours so that they can maintain a work-life balance. This would help them come to the office with fresh minds which induces creativity and innovation.
They must be provided with flexible work arrangements such as remote work or competitive compensation for overtime. This is an excellent way of boosting morale and engagement of the staff.
Ensure protective HR policies and practices
Management affects employee engagement and thus their likelihood of staying with the company because they are the ones directly dealing with them.
When it comes to managing people, hr professionals make the biggest decisions. Therefore, whether or not staff leaves greatly depends on the hr teams.
The leadership must come up with employee-friendly policies, that favor and retain the top performers. Such policies must support and empower the team members so as to make them comfortable in the office environments.
The managers must be trained in their dealings with the staff. Good managers are the ones that induce friendly competition among co-workers and encourage employees toward a promising career path.
In light of the discussion above, it is apparent that staff retention is extremely crucial for proper functioning of the business. When a team member resigns, it effects the over all morale of the remaining members making it difficult to maintain stability.
Therefore, the organization management must take measures and re evaluate their company values to ensure none of the employees leave. There are quite a few ways of doing so, such as imparting new skills, showcasing success stories of other members, remote work opportunities and creating satisfaction in current job.
Such measures are beneficial not only in retaining more employees but also are fruitful in attracting new employee into the business. Hence, the managers must work on strategies that help in retaining staff for much successful outcomes.
Let us know in the comments as to what actually causes staff turnover.