10 Ideas to Improve Employee Retention
Low retention rates affect your bottom line, and we have employee retention ideas to help that. The costs of employee turnover can be 1.5 to 2 times the salary of an employee. Also, consider the lost productivity and the impact of lower morale when good people leave.
Because of the financial impact, it makes good business sense to try to improve employee retention rates.
Here's 10 employee retention tips to help keep your best people:
1. Review your hiring process:
One employee retention idea is to start by screening and selecting applicants, and only hiring the best candidates that also fit your culture. While hiring the best people is obviously important, it's wasted effort and expense if great employees leave because they feel they would be appreciated more elsewhere.
2. Consider Remote or Hybrid Work Schedules:
Today's workers are demanding more flexibility in when, where and how they do their jobs.
In a trend that began in 2021, surveys show that employees are feeling a pent-up desire to make quit their current job and make a change. Previously, during the pandemic, many people just decided to stay put in their jobs. But now, many workers are thinking about looking for a new job with better opportunities, more meaningful work or better work flexibility. The Microsoft Work Trend Index found that 40% of people want to change jobs this year. Today, more US workers are quitting their jobs than at any other time over the past 20 years.
To stop the exodus and even reverse it by making your company more attractive to new, motivated employees, we first need to understand what's driving people to quit. See how to make some transformative changes to not only stop the resignation of your current employees. Read more at: How to Stop the Great Resignation in 2022
3. Create an effective On-boarding program:
Developing and implementing an on-boarding strategy is an excellent employee retention technique, and can help you raise the average retention rate by as much as 25%.
Your on-boarding program should introduce new employees to your culture, goals and strategy from their first day to ensure they are engaged and motivated. More on on-boarding employees.
4. See what is working for successful companies:
It is extremely valuable to look at how other companies are keeping their best employees when looking to improve employee retention techniques. Surveys show that using recognition and incentives to retain talented employees is right up there with benefits and compensation.
5. Check your salaries against the market:
There are many surveys, industry organizations, and consultants who can help make sure your employees are being fairly compensated for the value they bring to your organization. A survey conducted by SHRM and CareerJournal.com revealed that 53% of the employees who start looking for another job, do so for better compensation and benefits. Think about this when you are looking to improve employee retention.
6. Provide many opportunities for praise and recognition:
Your comprehensive Employee Recognition Strategy should include many ways to show your appreciation. From formal employee recognition programs like Service Recognition Awards, Spot Recognition awards, on-going Point-banking programs, Sales Contests, and Employee Christmas Gifts. These programs will keep employees motivated, excited about their jobs, and feeling appreciated as well as help improve employee retention.
For more information, and some easy ways to recognize your employees, see:
7. Provide opportunities for ongoing education:
There should never be a time when employees feel they are done learning. Usually high performers are always looking for ways to better themselves. So, an employee retention idea is to encourage further studies, whether its internal training for work related job skills, or by providing tuition reimbursement for courses taken outside. Your commitment and emphasis on education will show that you are willing to invest in your employees, and is a powerful incentive for them to stay with your organization.
8. Provide advancement opportunities:
Employees may become discouraged if they cannot see how they can advance within the company. So, let employees know that, whenever possible, your organization intends to hire from within, and describe what it takes to achieve the next milestone. This will help employees feel valued and provides them with a clear view of their potential career path.
9. Open Communication between employees and management:
Another employee retention idea is to hold regular meetings with your entire staff. Find out what is encouraging and motivating them, and what is making them feel de-motivated. Having these regular conversations will prevent you from only hearing about it during an employee's exit interview.
10. Communicate your mission to help improve engagement:
Let employee know where you are, and where you're going. When employees understand your organization's goals and strategy, they will feel more connected and engaged and this will improve employee retention.
Put a plan in place to communicate your strategic goals, and let every employee clearly see how they can support these goals. Employees who understand your mission and their roles, are the most likely to be engaged.
Final thoughts on improving retention:
When thinking of employee retention ideas, remember that when employees feel valued, recognized, appreciated, and fairly compensated, they will stay longer.
Start taking advantage of these employee retention ideas to improve engagement, productivity and retention. See these easy and affordable recognition programs offered by Select-Your-Gift.
Click above to Get a Free Employee Recognition Information Packet with a sample Employee Award Presentation Packet, along with a sample award catalogs employees can use to select their own perfect gifts.