Employee engagement levels in the U.S. are on the rise. In 2018, Gallup reported that the percentage of workers who are enthusiastic about work was 34%, tying its highest level since 2000. Since engagement is tied to positive business outcomes, this progress is great news for organisations. But with 66% of the workforce still not fully engaged, there’s plenty of room for improvement. That’s why many companies are taking a closer look at why employees leave and which employee retention strategies are most effective. Learn eight retention strategies you can put to work today to improve the employer-employee relationship from the moment of hire.
Why employee retention matters
According to Employee Benefit News, the average cost of losing an employee is about 33% of annual salary. When added to lost talent, time, and the negative impact on team morale, turnover can take a big toll on your business. Gallup found highly engaged teams are 21% more profitable, absent 41% less often, and have 59% less turnover than disengaged peers. Successful companies focus on engagement in their strategy for how to retain employees.
Practical ways to improve your retention programme
In order to develop an effective employee retention programme, your business must consider the needs of its workforce. For example, your retention strategies should include the basics such as compensation and recognition, as well as other factors that boost satisfaction like work-life balance and employee well-being. Robert Half International recommends that your retention efforts start from your new hire’s first day on the job and get reviewed annually. Stay current with compensation rates, benefits and new ways to strengthen workplace culture.
Eight ways to encourage employee retention
Competitive organisations are learning how to retain employees with strategies that focus on an improved employee experience. If your business is looking for new ways to win the war for talent, here are eight ways to encourage employee retention:
1. Provide an accurate job description during the recruitment process.
Your company’s recruitment methods can strongly affect turnover—make sure you paint a realistic picture of the job to ensure retention of new hires.
2. Set your new hires up for success.
Create a smooth, comprehensive onboarding process for new hires to educate them about both job details and company culture. Be sure to offer ongoing opportunities to ask questions; try pairing new employees with a mentor to acclimate them to the office environment.
3. Offer fair compensation and tangible benefits.
To earn employee trust and loyalty, your organisation must maintain a fair and equitable workplace. Be sure that compensation and benefits packages are clearly understood and keep pace with market value.
4. Recognise and reward employees for outstanding performance.
Employees want to be recognised for a job well done. Employee recognition programmes help drive job satisfaction, engagement, and retention.
5. Provide ongoing training and development opportunities.
Modern professionals want advancement opportunities; offer employees personalised learning programmes to help them achieve their short and long-term goals, acquire new skills, and develop leadership potential.
6. Support work-life balance and encourage well-being.
A comprehensive wellness programme helps employees make positive changes to lifestyle, resulting in higher productivity and job satisfaction. To attract and retain talent, it’s essential to provide flexibility. Offer remote working options and other programmes that help keep employee happiness up and stress levels down.
7. Ensure clear communication and ongoing feedback.
Another key to building trust and loyalty with employees is clear, open, ongoing communication. This should be present at all levels of the organisation. Offer more than just an annual review; when feedback is provided frequently, the conversation can be more fluid and empowering.
8. Foster a collaborative work environment.
Your organisation should support team unity and encourage good manager/employee relationships. A supportive culture not only leads to increased productivity, but also higher levels of job satisfaction and retention.
Drive success with employee-centric strategies
Support your modern workforce with a comprehensive retention programme that builds trust, increases satisfaction, and encourages open communication. Employee retention is a crucial part of any successful human capital management (HCM) strategy. Asure Software provides talent management solutions that can help your business boost employee retention and win the war for talent.