A study by Microsoft found that 41% of the global workforce would consider leaving their current employer within the next year.
Is your company set up to retain employees?
Most employees leave managers, not the company itself. Are your managers empowered and qualified to grow teams?
Cost of losing employees can be paralyzing to a company:
- HR/Recruiting Team: 5k
- Management Team Interviewing Time & Effort: 5k
- Downtime on project – huge
- Current employees taking on more stress and responsibilities – extra hours, etc. – huge – long term negative effects.
Are you hiring the right employee for your team? Lots of companies are so stressed to find talent that they are rushing their process to hire. This has long term potential implications. Projects not completed up to standard, low company morale and replacement cost/time.
And don’t forget benefits – does your company have competitive benefits? Of note, millennials account for 50% of the national workforce and prioritize extrinsic benefits such as perks and bonuses.
Here are 10 Employee retention tips:
1. Hire “Cultural Fit” Employees
Although experts have been saying this repeatedly, we often tend to overlook that retention begins with the right hiring processes. When you vet candidates, finding culturally fit candidates should be your top priority. Candidates should have the right skills and work well with the managers, co-workers, and company as a whole.
For this, you can optimize the interview process by asking a few uncommon questions or asking them to fill a personality test. Try to focus more on the soft skills that fit the role. Outline the company core values and be as straightforward as possible on what you want from your future employees.
2. Revamp the Workplace
Another effective way to retain employees is by offering them a great place to work in. The immediate work environment has a significant impact on our mood on a day-to-day basis. When the vibe isn’t right, everything else fails. Colorful and eye-catchy office designs are becoming more and more common lately because of this very reason.
Modern workplace design must have a blend of comfort and style. You should put special care on the colors you choose for the interior and the lighting facilities in every nook and corner of the office. The workplace design, when done correctly, can also speak volumes about the company values and working style.
3. Go a Little Crazy with Benefits
Giving a pay hike is a proven way to boost employee morale. However, the effect tends to diminish after some time. Raising salary is more like a quick-fix to a much larger problem at hand.
Employee Benefits, on the other hand, aids in long-lasting employee happiness. When your employees receive something above and beyond their salary, it reflects the company’s goodwill. Well-planned and meaningful employee benefits significantly help in attracting and retaining millennial employees. Company-sponsored yoga classes, gym memberships, free food, Pet-friendly office spaces are some out-of-the-box benefits ideas.
4. Foster and Promote Wellness
The working style can make and break the health and wellness of your employees. “Workplace wellness” has been creating the buzz in the HR space for quite some time now. But, minimal effort has been taken by employers to promote wellness in the true sense.
A healthy and balanced lifestyle results in improved sleep cycles, reducing anxiety, and improving mood. All of these factors collectively improve employee motivation and lead to employee retention. Additionally, healthy employees are more productive, and absenteeism is much less among them.
You can start by offering free healthy snacks, an onsite gym or membership to a local gym, employee health, and a fitness mobile application.
5. Reverse Performance Reviews
The reasons for employee turnover vary from one organization to the other. Hence, one of the proven ways to tackle the problem is to understand how an employee feels in the office. You must give your employees a chance to communicate how they are feeling and what they face in the workplace.
Reverse performance reviews give employees the voice to share their experience on what is working and what isn’t in the workplace. Similarly, conducting formal exit interviews is another excellent way to gauge employee experience.
6. Identify Workplace Stressors
Workplace stress factors are the primary causes of high employee turnover. Prolonged workplace stressors also lead to physical and psychological disorders such as cardiovascular diseases, obesity, stress, burnout, etc.
Some everyday workplace stressors include workload, unrealistic expectations, lack of recognition, conflicts, poor communication, and harassment.
95% of human resource leaders admit employee burnout is sabotaging workforce retention.
As conscious managers, you must keep an eye out for these common workplace stressors. Having a sound action plan and guidelines in place is crucial to prevent such cases. Creating an emotionally and physically secure workplace should be a prime agenda in every organization.
7. Become Socially and Environmentally Aware
Businesses can no longer separate themselves from what is happening in and around them.
The newer generations, the millennials and GenZers, love to part of an organization that has an eco-friendly and charitable approach. It gives employees a feeling of making a difference, and companies naturally earn better employer branding. Consequently, it boosts employee retention.
Companies, therefore, need to find sustainable ways to grow while protecting the planet and acting responsibly to social causes.
8. Encourage Collaboration and Teamwork
Gone are the days when workplaces were a hotbed for conflicts and cut-throat competition. People now wish to be part of a collaborative workplace driven by strong teamwork—a place where people uplift one another and are focused on one greater goal.
This is a win-win for both the employees and the employer. The result of this is a pool of ideas, resources, and perspectives.
When you promote team-building, you’re bound to have many motivated people who give their best, and overall performance shoots up. To keep your employee retention strategy on track, you must invest in such long-term initiatives and mold your company culture.
9. Embrace Employee Growth with Open Arms
Employees dread to be part of a company where their growth is stagnant. 70% of high-retention-risk employees say they’ll be forced to leave their organization to advance their careers.
LinkedIn’s 2018 Workforce Learning Report states that 93% of employees would stay at a company longer if it invested in their careers.
Offering ample opportunities for employees’ personal and professional development must be part of your broader employee retention plan.
Large and small businesses must invest more in learning and development programs. They must be offered workshops and e-learning courses from time to time.
10. Digitize the Workplace
Employees today are digital natives, they’ve grown in an era of fast-paced technological advancement. Naturally, they are fast adopters of tools and technology in the workplace.
A digital workplace will comprise all the tools, programs, and tech you feel will help your employees do their job more efficiently.
With a focus on improving employee experiences, businesses must choose and leverage the right tools for their digital workplace. A digital workplace also makes it easier to manage virtual and remote teams.
Effective employee retention strategies, although it might seem very costly at first, the cost will be must lower than replacing your biggest assets. I hope these employee retention ideas will help you boost employee engagement among your workforce and give them a fulfilling experience.
- Saving lots of money. Healthy retention rates save companies oodles in turnover costs, which could add up to as much as 400% of an employee’s salary and demolish your bottom line.
- Using time instead of wasting it. When you have to spend at least a month filling open positions, other long-term strategic work may suffer.
- Keeping friendly faces around. You’ll have a team full of people who trust, respect, and deeply know one another—the foundation for strong company culture.
- Benefitting from long-term employee knowledge and training. Your employees know what they’re doing, and they know what they’re doing specifically in the context of your company and its missions. By keeping them around, you benefit from that growing store of individual and company-based expertise.
- Enjoying the benefits of motivated employees. Employees who stick around, a.k.a. engaged employees, show commitment and motivation toward helping companies they love achieve key goals.
If you have any other strategies in mind or anything that worked for your organization, do let us know in the comment section below.
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