As the economy continues to recover from COVID-19 and employers deal with record-setting job openings in the face of the Great Resignation, we are experiencing a very competitive job market in which many businesses are looking for ways to retain valued employees. Employee turnover is not just a temporary disruption for businesses; it is also a very costly one.
The Work Institute reports that replacing an employee can cost around a third of their yearly salary. High turnover also has a noticeable effect on staff that remain and, by extension, the service customers receive. When a colleague leaves, the workload of the remaining employees often rises, leading to further departures and an atmosphere of frustration and stress. Therefore, keeping employees happy and stopping them from seeking greener pastures has never been more important.
Here is a look at seven effective employee retention strategies:
- 1 1. Show Your Employees That You Value Them
- 2 2. Offer Remote and Hybrid Work Options
- 3 3. Invest in Employees’ Career Development
- 4 4. Help Employees Improve Their Work-Life Balance
- 5 5. Make Improvements on the Management Side
- 6 6. Support the Well-Being of your Employees
- 7 7. Reassess Compensation and Benefits
- 8 Schedule a Consultation with the Premiere Benefits Consultants
1. Show Your Employees That You Value Them
Most human resources professionals agree that recognizing employees’ contributions is very important for retention. Unfortunately, many organizations do not have formal recognition programs in place that demonstrate to their employees how much they value them.
Businesses should encourage management to recognize the work of those who report directly to them. Company-wide recognition of outstanding employees who go above and beyond can also increase employee satisfaction.
2. Offer Remote and Hybrid Work Options
As a result of the pandemic, it is now easier than ever for employees to work remotely. Lockdowns led to significant growth in the quality and efficacy of remote working tools and have made it possible for more roles than ever to be performed outside of the office. A survey carried out by Robert Half in 2021 found that one third of employees would seek a different job if they were required to go back to their office on a full-time basis.
Although there are some positions that simply cannot be performed remotely, businesses should take the opportunity to offer hybrid or remote options whenever possible. Keep in mind that you can still require employees to attend core in-office days or recurring in-office meetings in order to continue to enjoy the collaborative benefits of shared workplaces without the rigidity of requiring a full-time presence.
3. Invest in Employees’ Career Development
A LinkedIn report found that 94% of employees would be willing to stay longer with their current employer if they invested in their career development. Employees in the modern workforce understand the importance of keeping their skills sharp and their knowledge current to help them advance in their careers.
Satisfy your employees’ desire for career development by offering mentorship programs that can help them grow professionally. Also consider investing in offering additional education. Some businesses may offer tuition reimbursement to employees who take career-related courses at higher education institutions, while others offer access to professional education courses that help upskill employees, which also grows the business’s talent base.
4. Help Employees Improve Their Work-Life Balance
In the era of quiet quitting, many employees are fed up with the constant stress of the traditional work culture. Even with offerings such as remote work and flexible scheduling that give employees more control over how they spend their time, saddling employees with more work than they are reasonably able to handle, or expecting them to check work emails long after business hours does not foster a good work-life balance.
Therefore, managers should check with their employees from time to time to make sure they are not overwhelmed. Employees should be able to feel comfortable talking to management about their workload. During crunch times, consider cutting back on unnecessary administrative duties and meetings that drain employees’ time without creating considerable value. If workloads are constantly unsustainable, it may be time to consider adding a new staff member; in some cases, this can be more affordable than the cost of higher turnover.
5. Make Improvements on the Management Side
While much of the focus on employee retention is rightfully placed on the employees themselves, it is also important to make sure that managers are creating an environment in which their employees want to stay. Many people quit their jobs because of a poor relationship with managers. Therefore, it is important to carry out periodic performance reviews to ensure that managers are effective and have the right leadership skills. Consider offering mentorship and training to managers to ensure they are fostering positive relationships with everybody on the team.
6. Support the Well-Being of your Employees
Lingering worries about the pandemic, combined with economic and political uncertainties, have left much of the world on edge, and pressures at work are only adding to the emotional turmoil of employees.
A positive corporate culture and appropriate workloads can go a long way toward preventing burnout, but it may also be useful to take additional measures that can support your employees’ well-being. For example, you might consider offering perks such as access to meditation and digital wellness platforms, gym memberships or massages to help keep your employees balanced and healthy.
7. Reassess Compensation and Benefits
It should come as no surprise that compensation continues to play a central role in employee retention. Even if you take all of the right steps to ensure your employees feel valued, they may still head to another company if they are not being fairly compensated for their efforts. Be sure to regularly reassess compensation standards in your industry and develop strategies to offer top performers financial rewards such as bonuses.
You should also consider your benefits package. Some specific benefits, such as increased parental leave or reduced employee healthcare premiums, could make the difference between employees staying with your company or searching for a new job.
Flexible workplaces are another driver of retention. If you can accommodate your employees’ needs by offering them flexible working hours or work weeks, they are likely to reward you with their loyalty.
Schedule a Consultation with the Premiere Benefits Consultants
Save your business the time, expense and lost productivity associated with employee turnover by working with the benefits consultants at Business Benefits Group (BBG). Our professionals will help you implement a custom strategy aimed at inspiring your employees to stay on board.