Employee retention is one of the key ingredients in order to have a successful business in today's world. It can be defined as when a company can keep employees that are motivated and engaged for a long period of time.
There are a number of reasons why employee retention is beneficial for companies. Some of these reasons include lower recruitment costs, reduced training expenses and a more experienced and productive team.
Employee retention is directly linked to employee engagement and job satisfaction. Employees who are happy in their role or with the company are much more likely to remain there. Employee satisfaction can be boosted by encouraging professional development, having great business leaders and implementing detailed employee retention programs within HR.
Below we will discuss a more in-depth insight into employee retention strategies that will help your business grow and thrive.
What are the reasons employees leave?
There are many reasons an employee will leave a company. Some are personal and have nothing to do with management or the actual job itself. But, the top percentage of reasons why a team member would leave a company are factors that can be fixed in house by implementing a plan to boost employee retention.
The top reasons an employee will leave your company.
Low employee engagement
Lack of encouragement
Negative company culture
Signs your staff aren't happy at work
Every business should lookout for signs that their employees aren't happy in their workplace or role.
Some signs will be obvious, while at other times it can be less clear that the employee's engagement is low. Here are a few things to look out for that may indicate that an employee is unhappy.
Watching the clock
Not cooperating while with others
Lack of communication
Keeping to themself
Only doing the bare minimum in their role
Not taking initiative
How to retain employees Effectively
Retaining employees is an essential part of any successful business. After all, a business is only as successful as the team that does the job. Here are some ideas that reduce employee turnover.
Offer Competitive Salaries and Bonuses
Salaries are one of the main driving forces for an employee. Having a competitive salary will not only motivate your staff to want to keep their current job but it will also help the employee to feel appreciated for the work they are doing.
Bonuses can take this one step further and help drive your team to reach and exceed goals. By directly awarding employees for their hard work, through means like bonuses or awards, it will help them to feel encouraged and give them a reason to want to work harder.
Good salaries, bonuses and rewards can help to create engaged employees. This can directly affect the team in a positive way because happy employees create a more positive work environment for everyone.
Listen, Ask Questions and Find Pain Points
When dealing with employees it is important to remember that you are dealing with human beings and not robots. Therefore it is crucial to listen carefully to what you are hearing and to not be focused on what you want to hear.
Try to stay away from questions that have a simple yes or no answer. Instead, ask open-ended questions that encourage staff members to explain why they feel the way that they do. This will make it easier to recognise pain points for an employee. And, once these are recognised, they can be addressed and rectified.
Provide Employees Feedback and Encouragement
When running a business a vital component to your employee retention strategy is giving feedback and encouraging workers. This rings true for both positive and negative feedback.
By reinforcing or complimenting an employee when they're doing a good job, it can help them to feel more motivated, which is linked to increased productivity. Even if the work an employee has done is small, if it's a benefit to the company or team, then they should be informed.I
Good worth ethic is critical to a thriving workplace. So, if you notice an employee with a positive attitude who works hard, then you should vocalize that you appreciate that type of behaviour.
Effective leaders and management teams should always try to find something that that employee is good at and let them know. Positive reinforcement also comes in the form of encouragement. When you see a team member doing something that you would like other team members to do, communicate this to the employee.
It's extremely important for management positions to be able to provide constructive feedback even if it's negative. Furthermore, if an employee is acting in a way that affects other team embers of the company culture, like bullying, then a leader should act quickly to combat and address this behaviour.
Develop Workplace Culture and Organise Social Events
Most employees spend the majority of their waking hours on the job. Therefore it is very important for employees to feel comfortable and confident in the work place. This can be done by implementing a positive workplace culture and organising social events.
When developing a company culture you should implement a set of standards or guidelines that every employee follows. This will help employees to know what is expected when management is not around. It also gives your company its own identity that could make your business excel against competition. Furthermore, a positive work environment will encourage communication, resulting in a more enjoyable place for employees to spend their time.
A great initiative to bring your team together and develop this positive workplace culture is by implementing social events. These events can bring your team's morel up and encourage employees to network with each other, resulting in a more enjoyable work environment.
Allow For Flexible Work Arrangements
In today's world allowing for flexible work arrangements is very important. Since the pandemic employers have had to become more creative than the typical 9 to 5 job hours that most people are used to.
The benefits of doing this allow employees more freedom which can make them feel happier. By encouraging a healthy work-life balance, the employee should become more engaged and productive.
Everyone is different,t some people prefer the structure of set hours, while others prefer flexibility. If you allow your workers to make this choice, then you are likely to see a boost in morale. This will overall make your team member a happy healthier person which will want them to keep their role for longer.
Cost of Retaining vs Hiring New Staff
If a business is consistently losing staff members through resignation, it can be hugely determinantal to the company. Of course, new staff members may have a positive attitude. however, the cost of hiring new staff rather than retaining old staff is considerably high.
In order to hire new staff, you must replace someone who has been with the company. When you are replacing a staff member, extra stress will be added to the current team. This can be in the form of overworking employees while you are waiting for a new hire or the stress and human error that's caused why the new hire is getting up to speed and learning how to do the job. When a team is consistently changing, the current employees may feel overworked and decide to leave their role as a direct result.
Aside from the added stress to existing staff, there is also the financial loss. hiring a new employee involves recruitment and training costs. Plus, new hires are more likely to make errors, which can have a negative financial impact.
What are further incentives to retain staff?
When it comes to retaining staff the benefits to a business are undebatable. Not only is it more expensive for the business to recruit and train new employees, but other staff members may experience more stress as collateral.
By implementing the above methods it will help to keep employees happier and healthier. More content employees are generally more engaged, which directly results in higher productivity. This will directly impact your business in a positive way.
Identifying and implementing an employee retention strategy for your staff is possible, but can be complex. If you aren't sure where to start, we have a team of skilled HR professionals who specialise in improving staff retention in all different fields of work.
Our team can help you devise a plan to improve your staff retention, give specific tips to improve employee engagement, and/or make suggestions for software programs that can help. If you're interested in finding out more, you can contact us here.