Employee retention is fast becoming a key competitive differentiator. A company’s ability to hold on to its talent — especially in tight hiring markets — has a profound impact on its ability to operate at a high level, without the disruptions that employee turnover brings.
With the new normal of remote and hybrid work, employees now have a wider range of potential employers to consider working for than ever before. The market right now, and for some time, is mainly candidate driven.
Business leaders need to develop a range of strategies to positively impact employee retention. By building a culture of recognition, open feedback channels, and other key techniques, you can boost your retention efforts this year and beyond.
How to improve Employee Retention?
Retention starts with recruiting
Retention starts right from the beginning, from the application process to screening applicants to choosing who to interview. It starts with identifying what aspects of culture and strategy you want to emphasise, and then seeking those out in your candidates. It’s an increasing returns model; the longer someone is with your company, the more productive they become over time. Employers and managers have to look at the long game and take steps to ensure they’re doing it right by making sure each employee is completely engaged with and part of the company’s ongoing success.
Spot retention issues on the CV
How can you choose candidates that are more likely to stay? There are key indicators right on their CV – look for candidates with longevity at their previous jobs. Job-hoppers are something of a gamble when hiring. While some might just be looking for the right place to land, many will not stay in your business for the long haul.
Onboarding and orientation for success
Every new hire should be set up for success from the start. Current onboarding processes should teach new employees not only about the job but also about the company culture and how they can contribute to and thrive in it. The training and support provided from day one, whether in person or virtually, can set the tone for the employee’s entire journey at the company.
Employee compensation is key
It’s essential for companies to pay their employees competitive compensation, which means employers need to evaluate and adjust salaries regularly. Even if a business can’t increase pay right now, considering whether they could provide other forms of compensation, such as bonuses, is important. Health care packages and retirement plans can also help raise employees’ job satisfaction, too.
Wellness offerings to all
Keeping employees fit — mentally, physically and financially — is massively important to contributing to the company culture overall. The pandemic prompted many employers to expand and improve their wellness offerings to help employees feel supported and prioritise their well-being. Stress management programs, retirement planning services and reimbursement for fitness classes are just some examples of what your business might consider providing to employees.
Balancing work with day-to-day life
A healthy work-life balance is essential to job satisfaction and employee retention. People need to know their managers and leaders understand they have lives outside of work — and recognise that maintaining balance can be even more challenging when working from home. Encourage employees to set boundaries and to take their allocated annual leave.
Flexibility is necessary for retention
As business offices slowly reopen after the pandemic, many companies are preparing for the fact that some of their employees will still want to work remotely, at least some of the time. Companies are having to rethink their working arrangements as candidates are more likely to leave if they are not offered some sort of flexibility in regards to where and how they can work.
The 7 retention strategies outlined above are just some ways to help increase employee job satisfaction. It is crucial to stay up to date on market standards for salary and benefits, and best practices for developing an attractive workplace culture and strong manager-employee relations.