Employee turnover is one of the costliest issues for companies. Companies have realized that retaining employees is not only cost-effective but also saves on non-monetary activities, which is why there has been a sharp increase in the use of employee retention strategies.
According to Gallup, companies in the US lose over a trillion dollars annually due to voluntary turnover. The benefits of retaining employees can be seen in companies that have long-term employees working for them, as these companies incur smaller costs on HR processes, are more productive and efficient.
There are many employee retention strategies that you can use, but the following five are some of the most successful ones that work for all kinds of businesses.
Create an Inclusive Culture
Employees need to feel included and comfortable with not only their coworkers but the company itself. According to Deloitte, employee engagement has become one of the most important aspects of a successful workforce. Engaged employees start to feel like they are part of an inclusive culture where they are respected, their ideas have value, and their contributions make a difference.
That is why it’s important to have employee engagement surveys at monthly intervals.
At times, certain groups of people may leave a company more than others, and that is mostly because of a biased culture. If people don’t feel welcome, they won’t like their jobs. Creating an inclusive culture means you take measures to include employees of all backgrounds, levels, designations, characteristics, etc.
You need to make sure that all your employees, despite their differences can relate to one central theme, i.e. the company’s culture. This will foster tolerance and understanding among the employees.
Create a Culture of Onboarding
Onboarding is the process of providing new employees with all the information, training, and help they need to adjust to their jobs and the company’s way of doing things. Successful onboarding ensures that all new employees start strong, familiarize themselves with the company, and become productive from the beginning.
For example, Netflix has an extremely successful leadership and culture-driven onboarding program, which is why they have an extremely low turnover rate. Here are some steps you can take towards introducing a good onboarding culture.
- Make sure the receptionist, team, and manager/boss welcome the new employee/s on the first day.
- Assign an onboarding partner. A senior employee can be partnered up with a fresh hire to show them around the office.
- Provide a clear understanding of your organization’s goals, mission, vision, and objectives.
- Provide the contact information of all relevant coworkers, along with their job descriptions.
- Introduce them to the company culture.
- During the first few months, the new employee should be regularly visited by the manager/supervisor. During these meetings, the supervisor should gauge how well the employee is doing, whether they are satisfied, if they need anything, whether they’re interested in something, etc.
- Value the feedback of the new employees and take action based on that feedback.
The aforementioned steps are a rudimentary onboarding program but you can and should add something unique to your company. Because these employee retention strategies are used by most companies, the difference is how they use them.
Invest in Training & Employee Growth Opportunities
One of the best ways to retain an employee is to provide them with constant opportunities to grow, both personally and professionally. You should provide regular training and other growth opportunities such as courses, seminars, and conferences; that the employee can use to polish their skills and learn new ones.
An employee’s growth is as beneficial to them as it is to the company, as you will have a more qualified, learned, and skilled employee at your disposal. This means that everything they learn will reflect on their performance, and increased productivity and efficiency are among the many outcomes of this.
In addition, the employee will thank the company for everything they learn, which means increased loyalty. The employee is also likely to stay for further training and opportunities.
Create a Healthy Work-Life Balance
The new generation of workers is much more inclined to favor a healthy work-life balance rather than other things. This means that the key to making them happy and satisfied is to provide them with the right working conditions and environment. There is a direct correlation between a healthy work-life balance and a better quality of work and productivity.
A lot of companies have adopted this employee retention strategy but Apple is making the most out of it. They provide a healthy work-life balance and unique employee benefits, which is a better motivator than a higher salary.
Create a Family, Not a Team
If you can make your coworkers feel like home, you’ve successfully created a family at your workplace. Building a team isn’t complicated. You just need the right mix of people with the appropriate skillset. Building a family, however, is hard because you need to find people that can tolerate each other at their worst whilst doing their work efficiently.
A sense of family gives employees a purpose to stay. If they can’t stay for the work, then they will stay for the people.
The Bottom Line
Companies tend to use employee retention rates to figure out whether they have a problem with employee turnover. But, truth be told, as long as there is employee retention, you need employee retention strategies. To do that, you need to know the current employee engagement trends.
Even if you have zero employee turnover, you should still have employee retention strategies. A proactive approach, in this case, is always better.