You may believe that your most impressive employee loves your company as much as you love them, but according to 65% of the workforce, most employees believe they’d be better off elsewhere.
This is why focusing on your employee retention strategy is so important: for diligent and well-trained employees, there is usually another bigger and better opportunity they can move on to. And, while you can never guarantee that your employees stay in their roles at your company, there are measures you can take to drastically improve your odds.
In this article, we’ll discuss five reliable ways to improve your employee retention rate, from providing a clear path for career growth to fostering strong company culture. Keep reading for some solid advice on how to keep your employees, your employees!
Why is employee retention so important?
Employee retention is important for a number of reasons, the first of which is how costly it can be to replace an employee.
Think about all the hours you have spent training someone, not to mention the fact that you’re losing productivity from the time it takes to find and train a new employee. The money and hours really begin to stack up when you have to replace an employee who was making a high salary.
Second, turnover can be disruptive and demoralizing for the rest of your team. When someone quits, it can create a domino effect as other employees start to worry about their own jobs. This kind of disruption can lead to decreased productivity and even increased turnover.
Finally, a high turnover rate can be a sign that something is wrong with your company. If employees are constantly leaving, it likely means that they don’t feel appreciated or supported in their roles. This can be a major red flag for managers and HR professionals who are trying to assess the health of their company.
Needless to say, employee retention is a major priority for any organization; not just because it’s costly to replace employees, but also because it can have a negative impact on team morale and company culture.
So, how can you improve your employee retention? Let’s go through some tips:
1. Improve Your Onboarding Experience
Employees aren’t the only ones who need to make a good first impression — companies need to make a great first impression too. The onboarding process is one of the most important opportunities you have to set the tone for your new employee’s experience with your company.
Make sure that your onboarding process is thorough and well-organized, and provides employees with all the information they need to get up to speed. Include things like an overview of your company’s history, culture, and values, as well as the expectations you have for your new employees.
Be sure to also provide plenty of opportunities for employees to ask questions and get feedback. The more comfortable they feel in their new role, the more likely they are to stick around.
Onboarding for Retention
Here are some tips for making your onboarding experience as thorough and welcoming as possible:
- Make sure your process is well-organized and easy to follow. You are guaranteed to leave a sour taste in your employees’ mouths if they have to spend their first few days hunting down information or trying to figure out what they’re supposed to do.
- Be sure to provide a comprehensive overview of your company, including its history, culture, and values. This will help employees get a better understanding of where your company came from and where it’s headed.
- Give employees plenty of opportunities to ask questions and get feedback. They will likely have a lot of questions in the early days, and it’s important to make them feel comfortable asking them.
- Make sure your onboarding process is tailored to your employees’ needs. Not everyone learns in the same way, so be sure to provide a variety of learning opportunities.
- Make the process fun and engaging. Employees are more likely to remember information if it’s presented in an interesting and enjoyable way.
2. Recognize and Reward Achievements
Employees want to feel appreciated for their hard work. A great way to show your employees that you value them is by recognizing and rewarding their achievements. This could be something as simple as a handwritten note or plaque, a monetary bonus, or extra time off.
Whatever you decide to do, make sure it’s something your employees will appreciate and that you can afford.
If you’re wondering how best to show your appreciation, you might like some of these ideas:
- Say thank you, and mean it. Acknowledge all the little things your employees do to help the company, even if they don’t seem important. Sometimes a little acknowledgment can make a big difference.
- Publicly recognize employees for a job well done. This could be done in a company-wide email, at a team meeting, or in front of other colleagues.
- Give employees the opportunity to take on new challenges. Employees who feel like they’re constantly learning and growing are more likely to stay with the company for the long haul.
- Allow employees to work from home occasionally. Employees who get to work from home sometimes feel more appreciated and valued, which can lead to better retention rates.
- Offer flexible hours. This is another way of showing employees that you value their personal lives.
Recognizing and rewarding employees’ achievements is a great way to improve employee retention rates. Employees who feel appreciated are more likely to stay with the company, which saves you time and money on recruitment costs.
3. Foster a Positive Company Culture
Creating a positive company culture is one of the most important things you can do to improve employee retention. This means creating a workplace where employees feel valued, appreciated, and supported. It also means having clear policies and standards that are enforced consistently.
A positive company culture looks like this:
- Employees feel valued and appreciated
- There is a clear mission and vision that employees believe in
- Employees are given the opportunity to grow and develop their skills
- There is a sense of team spirit and cooperation
- Employees are held accountable to high standards
- The company celebrates success
When employees feel like they’re a part of something special, they’re more likely to want to stay with the company. Fostering a positive company culture takes time and effort, but it’s well worth it in the end.
4. Encourage Development
One way to encourage employees to stick around is to offer opportunities for growth and development. Promote from within whenever possible, and provide learning and development opportunities that help employees grow their skills.
Encouraging development means more than just providing opportunities for employees to learn new skills. It also includes fostering a culture of creativity and innovation. Allow and encourage employees to experiment with new ideas, and provide the resources they need to be successful.
This type of environment can help employees feel excited and engaged in their work, which can lead to improved retention.
Some opportunities for development you may want to consider include:
- Providing learning and development opportunities, such as online courses, workshops, or conferences.
- Offering mentorship programs.
- Encouraging employees to take on new challenges and responsibilities.
- Fostering a culture of creativity and innovation.
Encouraging employees to take on new challenges helps them feel valued and appreciated, which can make them more likely to stay with your company.
5. Allow for Flexibility
One of the main reasons employees leave their jobs is because they feel like they are not able to balance their work and personal lives. In fact, according to a study by the Society for Human Resource Management, 43 percent of employees say that flexible working arrangements are important to them.
Employers can improve employee retention by offering flexible working arrangements, such as flextime, telecommuting, and job sharing.
- Flextime: You can organize a flextime arrangement by allowing employees to work a set number of hours each day but within a range of days that works for them. For example, an employee could work 8 am to 4 pm on Monday, Tuesday, and Wednesday and 10 am to 6 pm on Thursday and Friday.
- Telecommuting: Telecommuting is a work arrangement where employees work from home. This can be a great option for employees who have children or elderly parents to care for or those who live far from their place of employment.
- Job Sharing: Job sharing is when two employees split the responsibilities of one job. This can be a great option for employees who want to work part-time or those who are looking for a career change.
Offering flexible working arrangements can help employees feel like they have more control over their lives, which can lead to a more positive attitude towards work. A positive attitude towards work can lead to a reduction in employee turnover.
Employee Retention: Final Thoughts
Improving retention can have a number of benefits for your business, including lower turnover costs, increased productivity, and improved customer satisfaction. Employee retention is a challenge for all businesses, but thankfully, there are many ways to improve it.
By using the tips in this article, you can create a workplace that employees want to stick around for!