Proven Strategies to Retain Employees
Last Updated on July 19, 2023 by VantagePoint
The Harvard Business Review – which has more than 9 million records of employees at 4,000 global companies – points out that mid-career employees have the highest resignation rate, and those that suffer most are the technology and healthcare industries.
At the start of the pandemic, the job market was full of uncertainty and massive layoffs: millions lost their jobs, and those lucky enough to remain employed stayed in their roles to survive. However, now that we are heading towards recovery in several countries, workers in privileged positions, especially the most qualified, experienced, and talented, who do not live paycheck to paycheck, are finally moving forward.
If you have already gone through that process, you know the stress of hiring is long and expensive for your company, especially when it involves training new employees. So, get a notepad and a pen, open your to-do list on your phone or computer and write or highlight these employee retention strategies.
Why are employees leaving your company?
For an employer, having a very high employee turnover has some negative consequences. Knowing the reasons employees leave your company helps alleviate these withdrawals.
Some of the main reasons that lead workers to this crucial employment decision are:
- Lack of job progress
- Insufficient remuneration
- Bad/toxic work environment
- External job offers
- Continuous excess of work
- The expectations promised to them when entering the company have not been met.
- A mismatch between capacities and functions
The recession is changing the workplace while employees are reconsidering their career opportunities and flexible work options during the shifts in the economic landscape. Fast Company details some of the challenges that employers can anticipate and manage in order to come out on the other side of the recession with a stronger team.
Employee Retention Strategies
Now that we have briefly listed some common reasons employees leave, here are some ways to retain employees.
Work-life balance and Employee wellbeing
The increased time we have spent at home in recent weeks due to the Coronavirus pandemic has made many people reflect on the importance of spending more time with the family, eating better, or exercising. For this reason, if you show concern on this issue, there will be a factor of loyalty from them to you.
An example would be offering a flexible schedule for those employees who have to take care of dependent people, such as children or incapacitated seniors, but also an updated workspace for those still at the office, with free snacks, green spaces, and other such perks.
Professional development opportunities
The most committed and ambitious employees are characterized by their desire to learn new things constantly. And if your business doesn’t give them that chance, they will pay for that training with their own money. In the meantime, they will look for a new job in another company that could appreciate their updated skills with better pay. Offer them training and professional development opportunities. That way, they will feel secure in their current position in your company.
Employer actionable steps
The image that your company projects will make talented workers want to work for it or not. Take actionable steps to push your vision, and show that you are invested in your vision.
Company culture
The culture your company emulates will contribute to employee retention. Healthy company culture is more than bonuses and rewards; it is one where your employees are appreciated, and they feel encouraged to come to work every day and put in their best. The company culture has changed a lot due to the pandemic and employees working from home therefore it’s best if you update your objectives if you want to retain talent.
Onboarding
Try implementing a more flexible teleworking system and digital integration protocols that adapt to your employee’s needs, as they will be expecting this, both Millennials and Gen Z.
Employee compensation
There are different ways to motivate your employees. Try adding bonuses for productivity. You can offer extra vacation days, memberships to gyms or sports clubs, or discounts on purchases of products and services from partner companies.
Employee perks and benefits
Let your employees’ perks and benefits be consistent with the capabilities and value that said employee has for the company.
Reward systems & retention bonuses
Don’t just pat your staff on the back when you want to appreciate them. Reward the value of their talent with development and recognition.
Communication and feedback
Another important tip is to listen to your team at all times, allowing you to detect their wishes, problems, or ideas. There must be different communication channels in which employees can feel heard and valued as an essential part of your company.
Also, ensure you properly communicate your company’s mission and vision, what is expected of each position, the achievements conceived so far, and the contribution of each sector to the organization, among other things. All this will begin to form a corporate identity.
This excellent strategy will benefit your company and keep all your employees satisfied and educated.
Flexible work
When your employees have the flexibility to attend to their personal life, they will be more productive. They will be able to concentrate during the day and be less stressed thanks to the fact that they can organize themselves to attend to all their tasks.
Focus on achievements
Many studies show that employees who feel valued are more productive and loyal. And also, in moments of crisis, they are the ones who encourage the rest of the team to move forward and seek solutions to the new problems that arise.
Show them options to grow in the company
Some people aspire to climb positions within an organization and will always be on the lookout for a signal that indicates this possibility exists. If it’s not possible now due to the current economic situation, show your valued employees that they go up the ladder once everything settles.
How to calculate the employee retention rate
The calculation of employee retention rate generally considers employees who left the company for voluntary and involuntary reasons.
You can calculate your company’s employee retention rate for a given period if you know the basic statistical information about employment during the period in question.
Find the total number of staff employed at the end of a particular time. For example, suppose the total number of employees at the end of 2020 was 12,000.
Find the total number of employees who left or were laid off. For example, the total number of employees who left or were laid off during 2020 was 1,000.
Subtract the total number of employees who left or were laid off during the period from the total number of staff employed at the end.
According to the example, 12,000 – 1,000 = 11,000.
Divide the number you calculated in Step 3 by the total number of staff employed at the end of that time. According to the example, 11,000 / 12,000 = 0.9167
Multiply the figure from Step 4 by 100 to get a percentage. Based on the example, 0.9167 x 100 = 91.67 percent. This figure represents your staff retention rate.
Employees Retention Statistics
Based on research by the U.S. Bureau of Labor Statistics (BLS), about 4.25 million people re-signed their jobs in January 2022, which is higher than the 3,3 million people in 2021.
Some of the industries that had the most turnover in the U.S are retail trade, transportation, manufacturing, construction, healthcare, and accommodation. While the industries with less employee turnover rate are information, real estate, arts, entertainment, recreation, and educational services.
Conclusion
The famous “great resignation” is only a means for an essential initiative to start being implemented. When you know how to keep the top talents in your company will make significant changes in your company that will prevent your staff from resigning.
The emphasis is now on satisfying your employees and ensuring they have a sense of professional fulfillment instead of throwing cash and incentives at them for their loyalty. Money will not always make your employees genuinely devoted and happy.
If you want to keep manual and administrative employee management tasks to a minimum, say goodbye to paperwork, and hello to HR time-saving efficiency and compliance, VantagePoint Benefit is here to help you and your employees from hire to retiree. Get in touch with our team!