Is your company concerned about employee retention? If not, it’s time for your company to focus on this issue.
In addition, employees make a significant contribution to your company’s operations. They assist you in reaching the company’s objectives.
However, based on SHRM research, 47% of HR professionals said that employee retention was the top talent management challenge, closely followed by recruitment at 36%.
Both retaining employees and recruiting are key points in the business process. It is crucial to hire fresh candidates regularly.
Nonetheless, it is also equally essential to maintain valuable talent who already know your business process.
If we look at the 2022 market situation, the competition among businesses is getting tighter. Leaders should retain their valuable employees to combat turnover due to great resignation and the rise of new business during the Covid-19 period.
Here are some of the most effective employee retention strategies you should implement in 2022.
In today’s competitive market, compensation is an essential piece of any retention strategy.
It is not new for companies to pay their employees competitive salaries. However, employers still neglect the importance of fair wages for their employees.
Based on the recent Glassdoor survey, 45% of respondents mentioned that the main reason for employee resignation is salary.
If employees feel inadequately compensated for their work, they will look for a new company that provides them with better wages.
Having a regular reassessment of industry compensation standards is essential. It sets you apart from the competition. It’s also great to show your commitment to taking care of employees.
Furthermore, you can also give them bonuses and gradual salary increases to appreciate their work to the company.
Employee Benefits Package
Besides salary, nearly 6 out of 10 employees also consider the company’s benefits package based on a Forbes report. This concern can occur because an incentives or benefits package is a concrete way to increase employee retention.
The company has many options for benefit offers. For instance, Healthcare is an essential benefit that interests many potential talents.
Based on the talent’s perspective, this benefit means that the company cares about the employee’s health. However, the company can consider other incentives, such as:
- Gym membership.
- Corporate discounts.
- Tuition reimbursement.
- Employee referral, etc.
Provide Opportunities For Growth
Providing employees with training developments for career advancement is one of the efforts to reduce turnover.
In today’s fast-growing era, every employee wants to move their ladder to the next level. Therefore, they see training as an investment to keep their skills sharp and competitive.
For some reason, many employees quit their job because they don’t have a clear career path. According to a LinkedIn report, 94% of employees would stay longer if the company could invest in staff career development.
Therefore, companies that offer training and development tend to have higher employee retention rates.
Investing in training and development programs does not only benefit employees. The company will also gain advantages from it.
It also boosts employee engagement, encourages creative thinking, and gives your company a competitive edge.
Show Appreciation And Recognition
Employees want to feel valued for their work. When an employee feels this point, it goes a long way towards their morale and loyalty to the company.
According to The Brandon Hall Group, companies that recognize employees more than once a month increase employee retention by 41% and 34% higher engagement.
Appreciation from management for their efforts can motivate employees to work harder and stay with the company.
To show appreciation doesn’t have to be expensive and lavish. Some companies set up formal rewards systems to encourage great ideas and innovation.
Even if you have a small staff or a limited budget, you can still implement a recognition program. Other small ways to appreciate or recognize employees are:
- Organizing a simple office lunch or award ceremony works well.
- Recognize an employee’s accomplishments by speaking up.
- Having a plan to celebrate work anniversaries and other milestones.
- Send out special wishes to employees on their years of service, an employee of the month, birthdays, work anniversaries, etc.
Build Employee Engagement
Improving employee engagement is essential for employee retention. Gallup’s report defines the employees who engage with the company.
It means the staff is highly involved and enthusiastic about their job and the office’s environment. Therefore, engaged employees tend to feel more connected with the company mission.
Employee engagement begins with leadership that values a people-first culture. The leader can begin this initiative by listening to the staff’s feedback.
Then, the company shall take action on that input. It helps employees feel valued and appreciated.
In addition, employee outings and events are another way to foster a sense of community among coworkers.
Offer Flexible, Hybrid Work Schedules
Due to pandemics, some employees are looking for flexible or hybrid work schedules.
Having a flexible work schedule is always a good idea if it doesn’t interfere with your job. Employees can avoid any office distractions, have better work-life balance, motivation, and morale.
Most importantly, it will boost job satisfaction among employees.
Even though flexibility and hybrid working sound convincing, not all companies can use these strategies. In this case, the companies can do another way.
The management can offer several options for the compressed workweek, flextime, or even partial telecommuting.
All of these options can still increase employee retention. It is your time to look for the right strategies and talk with your employees.
Do The Exit Interviews
You can’t develop a retention strategy unless you understand why employees leave. This thing is critical to reduce employee turnover.
Before the employee leaves the company, the leader can use this opportunity to conduct exit interviews. An exit interview can provide an analysis of why employees leave.
The company shall encourage open communication and listening to their experiences, feelings, and judgments. Usually, employees will express their feelings honestly in this exit process.
You can ask about the improvement recommendation.
Last but not least, the leader shall ensure that the feedback will not result in any negative consequences either to the person or company image.
The leader shall filter every conversation during this interview. So, we can see what exactly happened from both sides and not blame one party.
Regardless of the industry you are in. It is important to look after your employees.
Today’s employees are looking for aspects of work that are far beyond monetary benefits—for instance, taking proactive steps to retain top employees and avoid costly employee replacement.
The company can make several efforts like engaging with employees, creating recognition programs, investing in employee development programs, and learning more about them than what you expect.
With these six strategies, the company can motivate their employees and retain them for a long term. This thing happens because they already gain satisfaction with their job.
Good luck in keeping your top players!
If you’re looking for ways to recruit and start your retention strategy for your top talents in today’s competitive labor market, Elabram System is here to help.
With our 20+ years of experience, we provide advice and facilitate you to transform how the workplace operates, engage employees, improve performance, and draw up compensation and benefit plans.
Schedule a consultation call with us now!