5 ways to improve Employee Retention in Your Organisation
About 25% of employees leave the organisation within the initial six months of their job. It is a huge loss for the organisation if a competent employee leaves the job and the employer has no idea what the reason was. It is a missed opportunity to know what led them to quitting, so that you can identify main problems at the workplace and protect other employees from experiencing it.
So, What are Employee retention strategies? It simply refers to holding talented and competent employees well in the organisation by devising plans to do so. If your wish is to improve employee retention rate, you should create a positive work culture, take care of employee motivation and engage with your employees, so they stick with the organisation. Employee retention strategies are cost-effective as it costs an employer half the amount to keep the employee than to replace him. It should be a high priority for an organisation to know what motivates their employees and by following proper employee retention practices to gain a competitive edge in the market.
Why is employee retention important for an organisation?
Employee retention is a trending topic in the market as many companies compete in the hunt for getting more and more talent into their organisation. If a company fails to emphasise on employee retention then it suffers from Low employee retention rate, higher cost of hiring ,decline in productivity and engagement levels.
While the inputs are high, the outputs are higher where companies investing in employee retention policies have found enhanced performance levels, boosted morale, better work quality and increased productive capacity.
The main takeaway is that employee retention policies are an important element that should be emphasised by organizations. It encourages talent and motivates staff to be a contributor to the company’s overall success.
Every employee would want to work at a harmonious work atmosphere where they feel secure and happy. Which brings us to the question ‘what employee retention strategies are effective’? So, here are 5 employee retention strategies that will make employees fulfilled with their job and reduce chances of job-hopping.
1) Start with recruiting the right people
Your retention plan will start right from recruiting the right person for the job, failing which most of the companies experience high employee turnover. The key to lowering employee turnover rate is by making proper hiring decisions. Beginning with, hire the fitting candidate, checking if the job requirements and candidate match and aligning company objectives with their objectives.
A good suggestion for hiring the right candidate is by taking a real-like approach in interviews such as creating a hypothetical scenario for them, to know how they will handle the situation. It is more effective than the traditional interviewing approach.
A study shows that 40% of hiring managers claim that newly hired would have stayed for a little more time if they were clearly informed about the company during the hiring process itself. It starts with familiarizing candidates about the work culture & objectives and then seeking their response towards it.
2) Building an employee development program
Employees have their own long term goals that they want to achieve in their minds, but they may not be able to clearly identify what the goals are. So, you can help them recognize their goals by designing employee retention programs, for skill upgradation and overall development. Provide them with an opportunity to handle their peers’ work by cross-functional training . Generally, promotions play a vital role in employee development, as it makes them feel valued in the organisation.
The employee retention programs could consist of seminars, webinars, mentoring, guiding etc for imparting new skills and new technologies required for doing the job.
3) Establish proper communication and feedback structure
It is amongst healthy employee retention practices for any company. By setting a proper line through which communication and feedback are facilitated is the key to improve employee retention rate. Your conducted employee surveys and feedback loops should keep track of what is going well, what needs to be changed, all the ideas & questions and finally bring the employee’s main concerns. Additionally, feedback surveys are the best way for an employer to understand the goals of employees, keep track of their goal, measuring improvements in the performance and overall gain the confidence of the employees. Your employees should know that their voice will be heard.
4) Benefits and rewards should be duly given
Majority of people leave one job for another just to get better benefits. The standard benefits like paid holiday, sick leaves and all are not sufficient. A company needs to show appreciation to employees by explaining how their persistent work helps the organisation to grow. By setting up a reward system that rewards new and practical ideas. Also studies show that 40% of employees quit because of salary, which means monetary benefits should not be ignored. Every employee seeks for long term monetary benefits with the company like overtime bonuses, incentives and loyalty rewards.
This means that monetary as well as non-monetary benefits are essential for retaining employees in the long run. These rewards will play a part in having better employee retention policies.
5) Recognise and award your talented employees
Employees are the driving force of an organisation. So, show appreciation to your hard-working employees by recognising and celebrating their work in front of others. Give them an appreciation award for thanking them and make them feel valued in the organisation.
By organising an employee appreciation program to encourage those deserving employees who gave their best efforts in the workplace. It can include awards, certificates, or any other equivalent rewards. These are a good way of showing your gratitude and motivating them to do better. It is a key point in retaining employees in the long run.
By now you must have understood what employee retention strategies are effective to sustain an employee for a longer time.
Just know that employees are not machines who will take the pay and leave, they are real people who have aspirations about where they want to work, how they want to work, and with whom they want to work.
As an employer it’s your responsibility to ensure the safety and well being of employees. Question yourself -If you have designed a work space where employees can be creative as well as comfortable? Do you focus on designing employee satisfaction surveys and making decisions accordingly? Have you done your best to motivate employees to their full potential?
If you are unable to answer any one of the above questions then, unfortunately the reason for employee quitting could be you. So, use our tips on how to retain employees and make effective employee retention policies of your own.
The bottom line is that you have to decide for yourself what employee retention strategies work for your organisation and what is the best way to implement retention strategies