Applying effective retention strategies within your company is key to ensuring your success. Good businesses understand the importance of maintaining employee engagement and satisfaction over a long period of time, rather than band-aid fixes. Not only does this increase company performance overall, but you’re also more likely to gain loyal and motivated employees, who feel secure within their place in your company.
Using these timeless employee retention strategies that can be related to any industry, you’re guaranteed to keep employee satisfaction at a high and increase your company performance.
What Is an Employee Retention Strategy?
Staff retention strategies refer to solutions that provide your team with the tools to succeed and be satisfied with their role in the business. Your strategies can encompass many things and cover many aspects of your business, including recruitment procedures, training and development, and managing company culture. They aim to not only increase employee satisfaction but productivity and performance as a company overall.
Why Are Employee Retention Strategies Important?
Building a successful company is near impossible if employees are coming and going consistently. When your work environment is not stable, it becomes harder to gain momentum and progress as a business. This is because instead of focusing on the larger goals at hand, managers, team leaders, and HR are always working on onboarding new staff.
i) Higher Return of Investment
Retention is excellent for the return of investment. Strengthening your business at its base level, your staff will ensure you get the results you are looking for. According to research, it costs roughly 20% of an employee’s salary when you are looking to replace them. This means the more employees that leave in search of greener pastures, you’re going to have to spend roughly 2 months’ worth of their pay just to replace them. In comparison, when an employer supports effective retention strategies, they are more likely to sustain higher profits overall, according to this study.
ii) Maintain Employee Connections
How are employees supposed to form strong bonds if team members are constantly leaving the company? Retention strategies open the door for connections to form between staff, which will, in turn, boost your positive company culture even more. This means you are more likely to form the foundation of a tight-knit community, who work and collaborate effectively together. Not only is this important for employee happiness, but it will improve your company’s productivity levels.
iii) You Won’t Waste Resources
If there is a steady flow of new staff members, your managers are most likely spending a lot of their time training and supervising, rather than doing the other aspects of their job. Whilst it is fine for managers to be in training positions when it is happening all the time, they won’t have time to focus on your company’s bigger picture. Therefore, not only will their time be wasted, but there is a threat of losing profits as a result of a lack of productivity.
iv) Increased Company Performance
A study completed by Gallup shows a direct link between employee retention and engagement, and productivity. The report finds the most successful organizations make retention a cornerstone of their business strategy and see clear results. Those who dedicated investments to their engagement and retention strategies see a 20% rise in productivity, and a 41% reduction in absenteeism, with 59% less turnover. These numbers show that employees who feel engaged and supported, show up to work motivated.
5 Employee Retention Strategy Ideas for Your Company
1) Have Competitive Employee Benefits
Having great benefits is an easy, and often inexpensive way to keep staff happy and feeling satisfied. Make sure when deciding on what benefits to offer your staff, you think about what will be appropriate for your company and what will truly impact your staff positively. Don’t just pick and choose ones that won’t actually benefit your staff.
Employee Benefits That Work
- Provide food for staff: there are plenty of benefits of providing food for the workplace. Whether this is keeping the office kitchen stocked with tea, coffee, and healthy snacks, or putting on a staff lunch once a month for your employees, providing food will keep staff feeling happy and healthy.
- Allow for flexibility with hours: allowing staff to have flexible hours or the ability to work from home when needed, gives your staff more control over their work-life balance. This then results in higher morale and less absenteeism.
- Work-life balance boosters: whether it’s a gym membership, complimentary classes in skills separate from work (cooking or language classes), or even starting a book club within the office, these benefits will help staff with their mental and physical wellbeing. Employee wellness should be a part of any retention strategy.
2) Hire the Right Person from the Beginning
A good retention strategy starts from the very beginning when hiring a staff member. Make sure when you list the job, you are specific about the role requirements and expectations. Don’t try to sugarcoat the position just to get bites. Be transparent about the job and the company. Let the prospective employee know of the company values and what will be expected of them if they are to join your team. This will ensure you are both on the same page about the position and your new employee won’t be disappointed with the outcome.
Following up with your new staff members is just as important as the initial hiring process. This is where you can gain an understanding of whether they are feeling happy within their role, or if there are some adjustments that may need to take place. If you have a staff member who has decided to leave, make sure you ask them the reasons for them deciding to leave. This is your opportunity to find what areas you can improve on and what else you can do to make the process more effective for the next time.
3) Offer Opportunities for Growth
A focus on staff education is the key to higher retention rates. Whether it’s a mentorship program, upskill support or extra training for professional development, offering opportunities for growth will suspend any feelings of stagnancy within your company. In any industry, the staff wants to see there is the ability for them to grow as a person and as a professional. If you’re unsure what training or development opportunities to offer, the best thing you can do is to ask. Ask your employees about areas they want to improve in and find compromises on what you can offer.
Not only will upskilling your employees help with their satisfaction levels, but it will also give you a highly skilled workforce who are able to grow alongside your company.
4) Recognition and Rewards
Alongside any other benefits you offer, every staff member wants to feel appreciated for what they do. Make it a habit to reward staff for good work, or when they go the extra mile.
Whether it’s a sincere email, a gift card, an extra day off or showing them how their hard work has paid off, show your employees that you appreciate them. You can also use company milestones as an opportunity to recognize company achievements and what role staff members played in achieving your goals. Whatever recognition and reward system you put in place, make sure it directly reflects your company values. If there is something that managers are labeling as important behavior, reward that behavior when it comes up.
5) Be Transparent and Communicate
Create open channels of communication between employees and management. Not only does this help employees feel secure with their position in the company, but it fosters a positive community between staff and seniors. Allow employees the space to ask questions about the company and what direction it’s headed in, as well as the opportunity to speak frankly and openly with their managers.
Creating platforms online, whether that be through a messenger app or alternative channels of communication, is an effective way to reach everyone quickly. It’s more personable than a company-wide email, and also provides the chance for instant replies and feedback from everyone. But, make sure to connect with staff members individually too, even if it just means taking a walk around the office and having a chat with people.
6) Alleviate Pain Points
An effective way to keep staff feeling happy and in balance is to find and alleviate their pain points. By sending out a survey, asking for direct feedback or keeping an eye on industry trends, you will be able to locate the points of frustration for your staff members. It’s especially important to keep your communication open with staff about their grievances during high-stress times, or times of transition within your company. These points in your company timeline can often cause points of tension, so it’s best to nip them in the bud.
A business that invests in good retention strategies and takes the time to build incentives that will positively benefit their employees will have a greater sense of stability.
Not only will good retention efforts to reduce hiring and training costs, but it can be a great opportunity to build employee knowledge and develop more innovative and well-optimized business processes.
By investing a little in your staff, you will receive a lot in return.