Employee Retention –What is making the Hottest Topic in Business World

By on December 1, 2016

With almost three-fourths of the workforce actively seeking new employment opportunities, companies are hard-pressed to find ways to improve their employee retention strategies. What makes people stay with a company for more than 1 year? Why do most people leave and what should we do to keep them around for extended periods of time?

Employee Retention –What is making the Hottest Topic in Business World

The cost of losing employees

One of the main reasons why employee retention continues to be a big concern for companies is the fact that losing employees entails costs. The factors that determine just what types of costs are involved differ from industry to industry but the most common are hiring costs, onboarding costs, lost productivity, decreased engagement, increased errors, and less effective or ineffective customer service.

The problem with losing employees, especially valuable ones, is made even more complicated by the fact that attracting the right talent is not easy to start with. In fact, drawing in the right talent is the biggest challenge of 64 percent of companies surveyed in a study published by Brandon Hall Group in 2015.

Factors that attract employees to a company

An essential part of developing effective employee retention strategies is determining the factors that attract employees to a company. When asked what makes employees consider joining and/or staying with a company, 71 percent of all employees surveyed by Brandon Hall in 2015stated that opportunity to gain experience and development is a crucial factor, 49 percent valued cultural fit, 45 percent preferred organizational growth and performance, and 41 percent placed importance on compensation and benefits.

Strategies for Effective employee retention

Strategies for effective employee retention

The hiring process is a fundamental part of an effective employee retention strategy as it allows you to identify and prioritize candidates who will be a long-term fit by taking several factors into consideration, such as:

  • The candidate’s career plans for the long-term and whether your company can provide those opportunities
  • The candidate’s track record (Is it stable or does he or she have the tendency to change jobs every now and then?)
  • The candidate’s ability to fit the company’s culture
  • When it comes to employee retention, managers have the biggest responsibility. After all, employees don’t leave companies; they leave managers. Make sure to communicate the strategic importance of retention to your managers by helping them understand their role in enhancing employee relationships. Cultivating a positive work environment and productive relationships is a basic skill that all your managers should have.

    For many employees, the opportunity for career growth is a major reason to stay in a company. During the hiring process, help candidates understand the career path for the positions they are considering. You should also take the time to identify your employees’ goals and to talk to them about the possible strategies for realizing those goals.

    Employee engagement tips

    Another crucial aspect of long-term employee retention strategy is employee engagement. A way to accomplish this is to acknowledge the value of employees’ contribution to the company through their work and to make certain that employees understand the importance of their role in attaining the company’s goals. Holding team building activities is an example of how you can keep your employees engaged.

    Recognizing and rewarding employee contributions as well as excellent performance through compensation, benefits, and bonuses are nothing new but other ways that publicly acknowledge a job well-done could come a long way in keeping employees engaged and improve retention. Your company’s employee appreciation program could also include providing awards or plaques, certificates of recognition, small gifts, VIP parking spaces, and others.

    Switching-Things-up-in-the-office

    Switching things up in the office

    Have you ever thought of switching things up in the office? How about changing the scenery every once in a while? Set up an outdoor type of gathering with employees, and take them somewhere nice and airy. This will take some of the pressure off; when people don’t feel constrained in a 4-wall office, they become more productive. Consider corporate conference venues, and do things differently to boost engagement. The beach might seem like a great idea, or the countryside where there’s plenty of fresh air that helps employees think more clearly.

    The competition for today’s labor market is tight because although there are many job seekers, it is not easy to find good employees who are committed for the long-term. Employee retention, therefore, should be the focus of your human resources management strategy. You can do this by hiring the right personnel, educating your managers, providing opportunities for growth, recognizing and rewarding excellent performance, and improving employee engagement.

    Alfred Stallion

    Alfred Stallion is the writer to this article. He is a regular contributor at many sites and mainly focuses on business and employee welfare related topics. He also writes for a site https://www.wildernessreserve.com/ offering corporate party venues in Suffolk.