While offering remote work is attractive to employees, it carries its own unique challenges as well. With in-person workers, you can easily demonstrate employee recognition, provide training, support career development, and increase engagement. To boost remote retention rates, you need to be more deliberate about the type of programs, culture, and support you develop at your company.

How Does Remote Work Affect Employee Retention? 

In one research study from Stanford University, hybrid work clearly improved job satisfaction and retention rates. At the same time, it had no negative impact on the employee’s performance reviews. A different study from China found similar results, with remote work improving retention rates and job satisfaction by a third. 

Many employees want to work remotely because of the lower commute time, easier childcare experience, and overall convenience. Unsurprisingly, this leads to better retention rates for companies. In turn, the improved retention rates help companies spend less on talent acquisition and onboarding.

Although remote work can naturally lead to better retention rates, there are still ways you can improve retention even more. Traditional methods, like providing raises or giving employee recognition, are equally effective in a remote environment, but you must be thoughtful and deliberate about how you put these techniques into practice.

What Are the Challenges of Remote Work for Employee Retention? 

Employers and employees often experience a few common challenges when they work remotely.

• Employee Burnout: When you are working from home, it’s much easier to work late. Many employees struggle to separate their workday from the rest of their life. As a result, overwork and employee burnout can become an issue among remote workers.
• Communication Problems: Because of the nature of remote work, it’s impossible to simply stop by your boss’s office for a chat. Depending on the project and the employee involved, this setup can lead to communication issues. For a remote team to perform at its best, it needs high-quality tools that are deliberately designed for remote work.
• Social Isolation: Some remote workers will go an entire workday without talking to their colleagues. Even when communication does happen, it may consist of emails or Slack messages. As a result, remote work can be incredibly lonely and isolating.
• Concerns About Career Advancement: Another major challenge for employee retention is advancement concerns. Top performers want to know that their work will be rewarded with a higher position, so they may leave if they are worried about getting overlooked for advancement opportunities because of their remote status.

How To Improve Retention Rates Among Remote Workers

While there are challenges involved in offering remote and hybrid positions, this type of flexibility provides a number of benefits as well. Many employees want remote work, so remote positions can provide you with a wider talent pool. It also gives your employees an important perk while also reducing some of your office overhead.

Many workers seek out remote positions, which is why this type of job naturally has a higher retention rate. However, the following are additional tips you can use to boost your retention rate even more.

Create Career Paths and Advancement Opportunities

In one research study, 63% of participants who left a job reported that it was due to a lack of career opportunities. Because remote workers are less able to network with colleagues and interact one-on-one with managers, they may naturally be afraid of losing career advancement opportunities. 

You can boost your retention rate by being deliberate about how you discuss career paths. During performance reviews, onboarding, and mentoring sessions, review common career paths for the employee’s job and what it takes to advance. This demonstrates to the employee that they have a future at your company, and it can allay any of their fears about lost promotions. 

Improve Communication and Transparency 

When you don’t have solid communication, it can leave remote workers feeling disconnected. While there are many different tools, like Slack or ClickUp, that can help workers communicate about projects, the important thing is how those tools are used. You need to communicate expectations and encourage open dialogue. With clearer communication, you can avoid misunderstandings and disgruntled employees.

Provide Employee Recognition and Rewards 

In a Gallup poll, only one out of three employees reported being praised or recognized for their work during the preceding week. With employee recognition, workplaces can boost employee satisfaction, improve retention, and recognize star performers. 

Recognition can be for many different activities.

• Doing something that upholds your company’s values
• Going above and beyond the minimum requirements of a project
• Performing actions that other workers mentioned needing to be done
• Doing thankless but necessary tasks
• Handling activities that are important for your company’s bottom line

Employee recognition doesn’t have to be major. It can be as simple as a thank you or a gift card. You can also try implementing an employee of the month award for star employees. 

The best recognition is authentic and comes from a leader in your organization. Additionally, Gallup has found that recognition and feedback should take place on a weekly basis to be effective.

Update Your Onboarding Program

Organizations that have good onboarding programs experience a 62% jump in new hire productivity and a 50% improvement in retention rates. Employees are most vulnerable to quitting during their first year of employment, which is why extended onboarding programs are so important. Onboarding helps to remove the uncertainty that comes with a new job and assists workers in learning the skills they need to succeed.

Encourage Work-Life Balance

Through better work-life balance, you can reduce employee burnout and improve job satisfaction. Because burnout has such a strong effect on employee retention, a better work-life balance can significantly impact your overall retention rate. Additionally, it can make employee recruitment and acquisition easier.

Implement a Mentoring Program

Employees who participate in a mentoring program are 49% less likely to leave their place of employment. Many workers leave an employer because there aren’t career advancement opportunities. With mentoring, employees get immediate feedback and career support. Besides demonstrating that there is upward potential at the company, this type of support helps remote workers adjust to the new company culture and feel like they are a part of the team.

Consider Improving Your Salary and Benefits

If you’re trying to increase your employee retention rate, think about adjusting your salary and benefits. No matter how amazing an employer is, employees need income to survive. Unsurprisingly, pay is a major reason why workers leave their jobs. In most cases, the pay increase at the new employer is only around 10% to 20%. This is significantly less than the thousands to tens of thousands of dollars it will take to hire and train a new employee for the available position.

Get Feedback From Your Remote Workers

From onboarding to mentoring, there are many potential pitfalls that can harm your turnover rate. Instead of trying to guess what your employees want, one of the best things you can do is receive and listen to their feedback. This can be done through a periodic survey, or you can schedule one-on-one meetings with each worker. Once you have actionable feedback, you can modify your HR practices to ensure a positive experience for all of your employees.

Boost the Remote Retention Rate at Your Small Business

When it comes to improving your retention rate, adopting a remote or hybrid work policy is an incredibly effective option. In addition to this highly desirable perk, there are a few other things you can do to encourage employees to remain at your company. With a comprehensive approach to retention, you can save your company money and improve employee morale.  

To learn more about the best practices for managing a hybrid workforce, reach out to our team of small business payroll and HR experts today.