One of the biggest challenges faced by employers is to maintain the employee retention rate of their organization. Not only does a high employee turnover rate tarnish your reputation, but it can also severely damage your business and can be very costly. It is estimated that when an employee leaves, replacing them can cost you double the salary of that employee.
Unfortunately, because of the increasing competition between organizations within various industries, employee turnover rates are getting pretty high. According to a survey by MRINetwork, 71% of the employees leave their jobs because of other opportunities. In another survey by Gallup, nearly 51% of employees in any organization are currently considering leaving their jobs. Not only that, around 25% new employees do not even reach a half year mark before leaving their job.
So how to make sure that your employees do not fall into any of the above-mentioned categories? Well for starters, employee retention requires the implementation of well-devised strategies. Here are some strategies that can help you gain employee retention.
Employee salary benefits and perks
When it comes to employee retention, the monetary benefits that you provide to your employees play a crucial role. At the end of the day, it is the salary that the employees are after and if they are not getting a hefty amount, there is a high chance that they will stop working for you. The salary along with the benefits and perks that you give to your employees, serve as a huge incentive for them to continue working for you. In fact a survey has revealed that 56% of the employees stayed at their workplace because of the health care and insurance benefits.
Take CarMax for example. In 2008 when the Great Recession was starting, many companies cut off employee benefits, reduced salaries and laid off many employees. CarMax on the other hand did the exact opposite; they invested more heavily on employee benefit and perks. What happened as a result? Not only did the retention rate of the company jump up, the sales also increased rapidly.
The perks and benefits that you give to your employees may vary according to your industry, but the bottom line is the same. Giving your employees a good salary coupled with benefits and perks is important for keeping them retained.
Prioritizing employee engagement and growth
No one wants to work at a dead end job. According to a survey by Gallup, 56% employees at any workplace feel they are disengaged and out of those, 73% are looking for another job.
Employee training and development programs can help your employees grow professionally as well personally. Workshops and training can be made engaging by employing different team building activities. Moreover, professional development training allows employees to explore their capabilities, motivating them to work harder.
Just making routine activities more interesting can greatly improve employee engagement. Workspee tasks and group projects are also a good way to keep your employees engaged. When employees are focused and engaged in their work, they are less likely to get distracted and indulge in non-work related activities.
The point is that your employees should enjoy coming to work every day and should have goals that they look forward to achieving. Having an engaging work environment leads to an increase in employee satisfaction which further leads to a higher employee retention rate.
Empower them with a voice and opening channels of communication
Hyatt Hotels, an American hospitality organization has impeccable employee retention. On an average, their employees stay with them for approximately 12 years. Out of 75000 of Hyatt Hotel employees, 14000 of them have worked there for more than 10 years. Not only does the organization have top notch professional development programs and recruitment strategies, they give their employees the voice that they need. The company uses the training program ‘Change the conversation’ which is based on the concept of empathizing and listening. This means the employees are given a chance to speak their mind and are allowed to find creative solutions for everyday problems. In short, the company puts a complete faith in their employees and provides effective channels for communication.
You can improve the communication between your employees by investing in collaboration software such as Workspee. Not only does it provide a seamless channel for communication between the employees and their managers, but it also provides a platform where employees can share their concerns and ideas with everyone else. When you give your employees a chance to speak and trust their abilities, they feel valued and appreciated.
Fairness and Transparency
Favoritism and inequality is a common problem that occurs in many workplaces. This unfair treatment of employees leads to a toxic work environment that can make employees leave their job. Treating all the employees equally and giving everyone a fair chance is crucial for employee retention.
Buffer, a company that has a 94% employee retention rate has an excellent work environment where everything is open and transparent to the employees. All of the employee salaries are public so that no one feels left out. Apart from that, they make sure that their employees get equal amounts of salaries based on their positions.
Other than being transparent about salaries, the company is also very open about its core values and company goals.
Respect and acknowledgment
Everyone wants to be respected and acknowledged, it is a natural human trait. So it goes without saying that when you appreciate and acknowledge your employees, they will work harder and be happier at their job.
Employing reward programs is an excellent employee motivation strategy. By giving rewards for various achievements, you can greatly improve the individual as well as team performance of your employees. Incentivizing employees by offering them freebies, discounts on shopping brands, and vacations or free holidays are a great reprieve from work pressure. They feel rejuvenated and cared for by the organization that drives their loyalty and consequently performance. Similarly Workspee you can employ a collaboration software that provides such incentives for your teams. Moreover, you can provide feedback and constructive criticism that can lead to employee growth and professional development.
Keeping the balance
‘All work and no play, makes Jack a dull boy’.
Similarly, all work and no relaxation can make your employees stressed, frustrated, and bored. This in turn can lead to a high turnover rate. Your employees need regular breaks and recreational activities to freshen their minds. Many companies use non-work related activities as a way to keep their employees engaged and happy.
Having parties and events is a good way for employees to take some time off. You can also give some days off to your employees as a bonus so that they can relax and get some free time on their hands. It also helps them in balancing their work-life with their personal life.
Patagonia is a clothing company which regularly gives their employees paid sabbaticals and off-days. As a result they have a creative workforce and a high retention rate.
Bonding with your employees- be a leader instead of a boss
Many employers like to keep a distance with their employees and do not appreciate bonding them. This autocratic leadership style can be very detrimental for a company in the long run. The times are changing and the new generation of employees does not like to be bossed around. They want leaders not dictators. By bonding with your employees you can earn their trust and loyalty.
You don’t necessarily have to hang out with them- even dropping by and saying hello every day can make them open up with you. Opening channels of communication with your employees will give them a chance to share their concerns with you and get in touch whenever needed. Instead of giving them orders, give them a chance to find solutions on their own and trust their abilities. You can also use ice breaking activities or gamification to get to know your employees better. Make a monthly schedule that includes some fun activity like sports or employee get-togethers to develop friendship. When you put your employees first and treat them with the respect that they deserve, you inevitably earn their trust and loyalty. And when employees feel that all their needs are being met, they would love to stick to their jobs.