How does staff retention work?
The goal of employee retention is to keep the organization’s top personnel on board for as long as feasible. Long-term employees have a significant impact on a number of variables, including productivity, uninterrupted business operations, reduced hiring and training costs, and so forth.
Because of this, the majority of HR directors and leaders place employee retention at the top of their list of priorities. But developing an effective staff retention plan is not always simple. A lot of elements, including employee appreciation, organizational culture, chances for growth, learning, and development, and more, are necessary for a successful employee retention plan.
Best practices for employee retention
We have compiled the top 12 employee retention tactics that have been tried, tested, and are guaranteed to work to assist you in creating a successful retention program.
1. Examine the reasons why workers quit
- You can’t create a successful plan to keep people if you don’t understand why they are leaving your organization.
- Check your industry’s typical turnover rate first to see if it’s higher than your company’s.
- You can gain insight into the true reasons why employees are leaving by putting in place an exit interview procedure for departing employees.
2. Examine your hiring approach
- Hiring is where it all begins. The folks you once hired are the ones that leave. So give your hiring process a closer look, paying attention to the qualifications for the position, the job description, the interview procedure, the pay and perks, and the duties and responsibilities.
- When new hires are taken aback by the fundamentals of the work, it’s clear that something has to be changed in the hiring process to ensure that you’re selecting the proper candidates early on and setting realistic expectations.
- Your job descriptions should provide a thorough and accurate overview of the job obligations as well as an open look into your business culture.
3. Improve new hire onboarding
- The anxiety, excitement, and anticipation of meeting new people and learning new things on the first day at a new job are frequently very similar to those we used to feel on our first day of school.
- It might be difficult for new employees to get accustomed to the new environment, people, procedures, job responsibilities, etc., but it can also be difficult for managers.
- It is now the manager’s duty to ensure the new recruit succeeds by fostering a sense of belonging among them from the very beginning.
- A thoughtful, well-considered onboarding plan for each new employee can go a long way. Make sure the staff is informed about the corporate culture and how they can succeed every day in addition to the jobs and duties.
- Make sure everyone is aware of the expectations by setting plans and targets for the first week, first month, first quarter, and so on.
- Introducing new hires, posting an announcement on the intranet portal, and assigning them to a buddy or mentor to help them get through the first few days can all make a big difference.
4. Support staff development
- Offering good career growth chances is one of the simplest strategies to lower employee churn. The primary reason workers leave an organization is because they don’t believe they have a fruitful, long-term career ahead of them.
- Employees will become dissatisfied and begin seeking work elsewhere if you don’t offer frequent professional development opportunities and a fair promotion system.
- This does not imply that you must annually promote every employee; your staff is aware that this is unreasonable.
- However, they do want to know what their potential career path entails, often discuss career advancement with their supervisors, and be confident that prospects for promotion are disclosed and dispersed fairly.
- One of the worst ways to lose your talent is to lose employees due to a lack of learning chances. These are the interested individuals who are eager to learn about novel technologies, approaches, procedures, etc. interested individuals frequently excel in the workplace
5. Choose the best managers and mentor them.
- The well-known adage “Employees leave managers, not companies” is widely known. Teams and employees are greatly impacted by managers.
- They have a direct impact on how motivated and engaged people are, which in turn affects how long they will likely stay employed by a company. But what is it about managers that employees find objectionable?
- Playing favorites, making inappropriate advances, inadequate communication, micromanagement, showing appreciation, delaying making decisions, not giving employees enough opportunities to learn, etc., can all be extremely demotivating and cause workers to consider leaving the company.
- Giving managers enough discretionary money to recognize team members and build relationships with the team over meals or lunches will also help break the ice. Building high-performing teams can also benefit greatly from the use of tech platforms for efficient one-on-one feedback and from the use of social intranet platforms to interact and engage with the team.
- Choosing your managers wisely and giving them adequate training in management techniques will help your supervisors succeed and your employees stay happy.
6. Encourage socialization at work
- Workplace interaction goes much beyond a Friday night drink with a coworker or a random team-building day.
- Making “meaningful” and “compassionate” connections with coworkers can greatly contribute to a productive, content workforce.
- Give your staff a variety of opportunities to mingle and engage, whether it is through frequent corporate gatherings and activities or effective communication tools.
- Socialization at work is very important for keeping employees.
7. Create trust by using open communication
- There are no longer any formal channels for employees to express their ideas, as there used to be when management would simply send out memos or post statements on notice boards.
- Employees want to be kept informed about every company’s progress in today’s fast-paced world and want to share their ideas and comments about it.
- The most creative and prosperous businesses don’t wait until they have unproductive, disengaged workers. Nevertheless, they make an investment in a technological platform that connects employees, regardless of where they are located, where they are in the world, or what device they are using to connect.
8. Express gratitude and appreciation
- Implementing a formal recognition program will help you achieve this. But it’s equally important to pay attention to the little things. Employee turnover rates are significantly impacted by the fact that underappreciated employees are twice as likely to leave their jobs within a year.
- There is a lot of space for improvement at virtually every organization because 65% of workers report that they haven’t gotten any kind of recognition for their hard work in the previous year.
- Nobody objects when someone compliments them on a job well done. Everyone enjoys receiving appreciation!
- Because of this, incentives and recognitions have a significant impact on employees’ levels of motivation and engagement, which in turn affects how long they stay with the organization. They foster the idea among staff members that their job is regarded and valued by the company.
- The power of recognition increases when it is made “social.” Announcing events on social intranet platforms, such as employee of the month, team recognition, birthdays, or work anniversaries, unites the company in joy and boosts staff morale.
- Numerous prosperous businesses also support and value the suggestions and creativity of their staff members. Investing in a formal platform might also make it easier to wish staff members happy birthdays, work anniversaries, and other significant occasions.
9. Request employee feedback and act on it.
- When employees are encouraged to express their opinions about the numerous events taking place within the team or organization, they feel more powerful.
- It can be quite helpful to periodically conduct surveys to gauge the organization’s pulse or gather feedback on particular operational areas.
- Additionally, lifecycle surveys can be used to quantify the “Moments that Matter” at various periods, such as at onboarding, position changes, work anniversary celebrations, etc. Employee experiences can be recorded and analyzed to better understand the problems and take faster action.
- While gathering feedback addresses a portion of the issue, you won’t notice much of a difference unless you act on the comments you’ve gotten.
10. Be mindful of workers’ health and happiness
- Recognizing the crucial role that employee health and well-being—physical, emotional, mental, or financial—plays in retaining workers and building a positive workplace culture can help to a great extent in lowering turnover.
- Employees value the companies that support their well-being, whether it be as simple as encouraging staff to take occasional paid time off and break to unwind and relax, increasing headcount where necessary, providing them with expert advice on making wise financial decisions, holding regular counseling sessions to ensure sound mental health, holding yoga and meditation classes, or covering their gym costs.
- Employees frequently quit their jobs because they feel burned out – their hours are too long, their vacations are too few and far between, and they don’t have enough time to be productive employees and whole people.
11. Maintain compensation
- While maintaining enough pay and perks for their employees may seem crucial, too many employers do not think so.
- Let’s say you don’t regularly check to see if your total compensation and perks are comparable to those of other businesses in your sector. In that situation, you provide your employees a reason to hunt for employment elsewhere.
- After all, employees labor in order to sustain themselves, which is made possible by a fair income and attractive perks. Additionally, it costs money to replace an employee. If you can limit turnover, you may be able to improve your bottom line by raising compensation or including a few benefits.
12. Let go as necessary
- A single underperformer can undermine an entire team and drive away your best workers.
- One toxic employee who consistently behaves badly causes problems, or makes others feel uneasy can have a significant negative impact on your entire workplace culture.
- It’s acceptable that not every person you hire will prove to be a good long-term fit. To avoid making the same error again, you should definitely investigate why the wrong person was hired.
- However, it would be beneficial if you made the necessary adjustments as quickly as possible to avoid losing the staff members who do fit and contribute.