No matter what your company uses as a baseline to establish success metrics, employee retention is always one of the most important things to a successful, thriving company. Managers and HR teams should be focusing on their employee retention strategy to help retain the best personnel in their company.
Because hiring new employees could cost up to 33% a workers annual salary, it’s in the best interest for the company to focus on their retention strategy. Employees who come to work every day and enjoy what they do and the environment that they do it in are more likely to remain productive, successful team members of the organization for a long-term period.
A strong focus on retention helps create an overall pleasant work environment. It also creates a strong company culture of committed employees. Below are 10 simple ways you can create an effective employee retention strategy and establish a positive company culture.
Ten Simple, Effective Employee Retention Strategy Tips
1.Perform Quarterly and/or Annual Reviews
Many employees look at the review process as something employees dread. While there are always certain nerves associated with a review, if you treat the process less like being called to the principal’s office and more like an open exchange of ideas, the result will be a one-on-one meeting that empowers your employees to set goals for themselves and you to set achievable goals for them. This encourages employee engagement in taking their success at your company into their own hands. If you perform quarterly reviews, they should be kept informal and brief. Discussion topics and goals established can be collected for a more formal annual review.
2.Create a Comfortable Environment
Have you ever walked into an office and immediately felt uncomfortable? As if the employees’ unhappiness is palpable in the air? On the other side of the coin, have you ever walked into an office and felt a warmth and positivity that couldn’t help but put you in a positive mood? Employees are more likely to stay for the long haul if they feel good about the place and the atmosphere they walk into every day. Part of this involves the aesthetics of the environment: comfy chairs, proper lighting (not overly harsh), good technology, and a place designated for intrapersonal employee engagement all help build this type of sought-after environment.
3.Recognize and Reward Individual and Team Accomplishments
Lack of recognition is the start of employees feeling disconnected from their work. This also leads to employees eventually seek employment elsewhere. Acknowledging your employees or teams for their accomplishments nurtures their sense of succeeding at their job. Acknowledgment encourages them to continue striving for consistent success.
4.Do the “Little Things”
One of the most common reasons you hear for a relationship failing is that people stop doing the “little things.” If you want your professional relationship with your employees to thrive and lead to employee retention, doing little things is a great way to build a team of happy, caring employees that reciprocate their appreciation with great work and loyalty.
For example, something as simple as stocking the breakroom with delicious, quality coffee and a nice selection of teas goes a long way. Saving a few extra dollars a month only to have employees bond over the common gripe of the bad coffee fosters negativity and isn’t really worth the savings in the long run.
5.Make the Path to Advancement Clear
Employees want to advance their careers. It’s simply human nature to desire to have goals that you are working to achieve. Making the path to advancement within your company clear achieves two very important things. First, it sets the tone that promotions are achievable. This encourages team members to strive to move up in the company. Second, it nurtures a company culture where employees know that there is room for growth. These are both contributors to strong employee retention rates. This also leads to leadership at the company having worked several lower-level positions prior to being in the role they are now, helping them have a better understanding of all elements of the job.
6.Offer a Degree of Flexibility
Workplace flexibility is no longer something that the “cool” companies of Silicon Valley offer. Flexibility is one of the top draws for top talent. This is especially true when a company is attempting to hire younger employees. Additionally, companies that offer flexibility or flex time often find that employees are less likely to take advantage of flex time than those with zero flexibility. Most companies have at least a portion of work that can be done remotely. Instead of having your employee extremely stressed over having to take personal time when a pipe bursts, simply allow them to work from home.
7.Never Underestimate the Power of Exit Interviews
Many companies shy away from conducting exit interviews for various reasons. They often associate it with employees leaving simply complaining. However, exit interviews can be immensely beneficial. They can bring to light issues that employers or HR professionals weren’t aware of. If you, as the employer, have the interview conducted properly and guided by professional questions, it can be incredibly beneficial in identifying employee pain points that can be addressed before even one more employee leaves. These exit interviews can also help gather insight that will be helpful in training the former employee’s replacement.
8.Make Communication Lines Clear and Truly Listen
Lack of communication is a big pain point for many employees that can lead to a negative company culture. No matter how wonderful and successful your company is, there is always room for improved communication. However, employees shouldn’t simply be encouraged to communicate. They should be made aware of the proper channels to do so. This means in a professional manner and to the correct HR professionals. If employees are aware of the correct communication channels to discuss issues, they are less likely to air their grievances outside the office.
9.Offer a Competitive Salary and Attractive Benefits Package
If you want great employee retention, start at the beginning. In order to attract and keep top-notch talent at your business, you must start by paying them well. Offering a truly exceptional candidate a good salary and attractive benefits package will pay off tenfold when you hire someone who is deeply committed to the company, stays a lengthy tenure and keeps you from the inevitable time-lost cost of re-hiring and training someone new if that person leaves due to being unhappy with their compensation. This isn’t simply about the number you put out during salary negotiations. Health insurance is becoming increasingly more important to people. Offering perks like flextime and work-from-home time are also major draws that are considered part of the modern benefits “package.”
It’s basic human nature of dedicated employees to want to do well and learn more over time. Offering ways for your employees to gain advanced training and enhance their skill set will help foster a sense of commitment to the company. Not to mention, you will benefit from a team of highly trained employees. Training opportunities also boost individual employee engagement with their own success at the company.