In a tight economy, retention rates are important as companies compete for talent. As time has gone by, the cost of employee turnover has also become more costly.
Apart from the financial cost, there are other effects this will have on the company’s productivity rate and culture. A high retention rate is testimony to how well a company runs and its employee engagement and welfare efforts. By focusing on maintaining high retention rates, a company will reap benefits such as retaining talented and motivated employees.
With the recent pandemic having further shaken the job market, retention rates are more important than ever. As such, we have compiled some tips that can help a company keep their retention rates high.
1. Culture is Everything
In order to keep employees for a long haul, it is pertinent to create a culture that attracts these employees. Having an environment that employees can easily adjust to helps employees build a strong bond with not just one another, but with your company as a whole. So what type of company culture should you instil, you ask?
The key is to match your culture to the type of employee you want to attract and keep employed. Workplace cultures range anywhere from a laid-back, casual environment to a more serious, by-the-book type. It all depends on what works for your company and what you wish to see in your employees. Not only will this generally attract the type of employees you desire.
Furthermore, it eases the interviewing and selection process as you will be able to identify suitable candidates that will fit in with your workplace culture. Working to keep up and build a strong company culture and identity is key to helping employees feel a sense of belonging within the company which in turn, increases their likelihood of staying on.
2. Give Employees Growth Opportunities
Career growth opportunities is one of the top driving factors which determines whether or not employees stay in a company for the long-run. Opportunities to grow their skillset and climb the ranks are what motivates employees to strive for improvement. It also gives employees a sense of direction, importance and clarity in where they stand within the company.
Giving employees the chance to discover new strengths while developing their current ones ensures that they will not be looking for such opportunities elsewhere.
3. Make Them Feel Heard
One thing that many companies seemingly lack is an open line of communication with its employees. However, a two-way line of communication is important when it comes to employee satisfaction.
Employees need to know that they are both seen and heard, and that their opinions and feelings matter. They should feel safe to come to you with any questions or concerns they may have. Likewise, management should also be honest with employees about their performance, or if there are any areas of improvement. Connecting with employees on a regular basis should be something that a company takes pride in, and consistently does.
4. Value Your Employees
“A company is only as good as its employees.” is a common saying, and there is of course truth to it. A company would be nothing without its employees, and employees should be treated as such. Showing your employees that they are valued not only boosts morale, it also encourages employees to continuously strive to do their best. Connecting a person’s job with the value they bring to the organisation gives employees a sense of importance and purpose as well.
A company can do this by offering additional benefits, bonuses or organising activities for its employees. However, a free and effective way to show employees they are valued, is to simply tell them so.
5. Work-Life Balance
A company culture that encourages employees to overwork is not at all conducive to employee satisfaction. In turn, this will not be conducive to employee retention. A good work-life balance is essential to employee satisfaction and can even improve productivity levels. Encourage staff to rest as needed and do not make them feel obligated to be available around the clock or on weekends.
If completely necessary for them to work on a weekend or late, offer compensations of some sort, such as late arrivals, early departures or off-in-lieu.
Employee retention strategies should be well-researched and put in place. They should also be looked through and revised frequently or as needed. Employee loyalty is not a given, and must first be earned by caring for employees.
Having a high retention rate promotes stability, productivity and company growth. It also eliminates the hassle of having to perform frequent handovers and having disruptions in tasks. Keep talented professionals happy working at your company, and they will repay you with their loyalty and insights.