Employee retention is becoming an increasing concern for business leaders. It is getting harder to fill open jobs, and people are leaving their employers more than they did in the past. According to Gartner, voluntary turnover is expected to increase by 20% compared to pre-pandemic levels.
This shift is a problem for several reasons. Losing employees at a time when it is difficult to hire can result in positions going unfilled for an extended time. It can hurt productivity and erode the experience for other employees.
Retention issues can also be costly. You spend money recruiting talent and bringing them on board. The longer an employee stays, the more value you can get from the investments you make in recruitment and onboarding.
The reality of higher turnover rates has caught many businesses unprepared. They lost a lot of employees quickly and then struggled to hire new staff. These business leaders are now reassessing the employee experience and wondering what they can do to improve employee retention.
This post will cover some of the ways businesses can increase retention rates.
5 Crucial Ways To Improve Employee Retention
1. Hiring the Right People
You will have a high turnover if you are not hiring the right people. This issue has gotten worse for many businesses as they may have relaxed their hiring practices to deal with staffing issues. While that response is understandable, the cost and effort of hiring people who don’t stick around are not worth it, especially if you want to improve your employee retention tax credit.
You need to vet new employees thoroughly. Don’t make the process too long or burdensome, but you need to consider their history and whether they are a fit for your culture.
Does it look like they have a history of job-hopping? Do they seem like a person who want to set long-term goals with your company?
2. Invest in Your Employees
You want your employees to commit to the company. They should feel invested in the work they do. You also want them to feel valued.
One of the best ways to achieve these goals is to invest in your employees. Train them to do new things and build plans to develop their careers in the company. When you show employees they have opportunities to grow, develop and advance, they will be more likely to stick around.
Using skills management software can be one of the best ways to make sure you and your employees get the most from development. This type of software will help keep track of employee skills and training. It can also help the business identify skill gaps and the employees ready to fill them.
With the right system, you can develop employees more effectively and maximize value for the company.
3. Create a Culture of Appreciation
Most employees know their value. If you want them to feel invested and engaged, you need to let them know you recognize their value as well. Compensation is one way to achieve this, but leaders should also express appreciation. Let people know you see the work they do and that you value the role they play in the company.
Even beyond the simple expression of appreciation, there are ways to reward employees. Having an award for employee of the month is one option. If an employee or team has a significant achievement, make it a big deal. You could also hold events like company parties or lunches to express appreciation.
4. Offer Unique Benefits
Benefits are a big part of attracting and keeping talent. A great healthcare package or vacation time can do a lot to show appreciation and keep employees happy. Beyond these obvious benefits, you could consider unique perks to make the job more attractive.
Different types of lifestyle benefits can do a lot to reduce turnover rates. For example, you could offer gym memberships once the person has been with the company for a while. A free snack machine in the break room can be an attractive perk. The ability to earn extra time off can be another benefit that will keep people with your company.
5. Listen and Act
Beyond recognition and great benefits, employees want to know their opinions matter. If you want to keep people in the business, you need to find ways to get employee feedback. It will show that you value their opinions, and it can also be a way to help you get ahead of issues that could result in retention problems.
Beyond just having employee surveys or making sure people know you are open to feedback, you need to act. If employees feel like their feedback is just falling into a black hole, it could make matters worse. Read and review employee feedback. Take the time to address issues when they arise. Make sure your employees see you taking action on their concerns.
As a final tip, remember your employees are individuals. Different people will have different factors that impact their decisions to stay in a job or leave it. By recognizing these differences, you can do more to keep your most talented employees.