Employee retention is the set of actions that the organization takes to ensure that a reasonable rate of employee turnover is maintained. Organizations spend large sums of money on recruiting and training employees, and it is a significant loss to see talented employees leave. There are many reasons why employees choose to leave their organization.
They may be offered a better remuneration, advancement opportunities, or a healthier work-life balance. Many employees leave to start their own business or to pursue the personal ambition. Finally, there are those who are laid off or fired because of unsatisfactory performance.
Less time wasted with adequate Employee Retention Strategies
Organizations should be concerned about improving employee retention because it helps them maintain uniformity and consistency. It is easier to build the skills of a workplace when they are familiar with the systems in place. Moreover, when employee turnover is high, it can create anxiety and stress among those left behind, and affect their performance as well. It can also be costly to find a replacement for the departing employee and to train them for the role.
The benefits of improving employee retention are immense. It helps the organization to achieve consistent performance because there are no sudden skill or knowledge gaps. The same set of employees can continue to advance the goals and objectives of the organization. It also helps the organization to attract the best job candidates because an organization with a high employee retention rate is perceived as an attractive company for job seekers. Furthermore, the best benefit for the organization is that it can continue to develop a pool of senior leadership from employees who have worked in the organization for several years.
1. Create a cultural fit
In recent times, culture has assumed prime importance in the factors employees consider when evaluating their relationship with their organization. Culture comprises of the values, beliefs, and ethics of the organization. Nowadays, employees expect the organizational culture to align with their values and principles. If a cultural fit is absent, employees may be compelled to sever their relationship with the organization and seek a better fit elsewhere.
2. Invest in employee training
In an age where new technology or process can render highly valued skills redundant and useless, employees are very concerned about staying relevant and learning the most valuable skills. Organizations should invest in the learning and development of their employees by offering in-house and third-party training. When employees feel that the organization is helping them stay abreast in their profession with the latest skills and technologies, they are more likely to stay on.
3. Improve the recruitment strategy
The route to successful retention starts with the right recruitment strategy. At the time of recruitment, managers should assess candidates for their communication and cultural traits. In the old days, it was sufficient to assess candidates on the basis of technical skills alone. However, such employees may choose to leave if they cannot find alignment between their needs and what the company has to offer them.
4. Listen to your employees
Before an employee serves in their resignation letter, they have given management ample signs of their dissatisfaction with the workplace. Managers can do a better job of retaining talented employees by observing these signs earlier on and taking steps to address them.
The probable causes can include dissatisfaction with workplace policies, reward systems, team dynamics, and opportunities for career advancement. If managers are alert to these symptoms and take steps to improve the situation, they can help to prevent employees from leaving the organization.
5. Institute fair payment systems
Employees deserve fair pay for their services. It is the responsibility of the organizational management to not only offer fair wages but to ensure that these wages are perceived as being fair across the workforce. Employees always compare their remuneration with their peers, both within and outside the organization. If they observe any inequality in what their company is paying them, they will be quick to seek employment opportunities in other organizations.
6. Offer a career map
Few employees today are content with working at a single job for all their lives. This model is no longer tenable in the current economic environment. They expect to build a career in their organizations and progress up the organizational hierarchy by gaining richer experiences and learning opportunities. Organizations should offer each employee a clear and attractive career map which tells them where they can be in 5, 10, or 15 years, and what they need to do to get there.
7. Create flexible systems
Today’s workforce is much more diverse than it has ever been. Affirmative action programs and the inclusion of different segments of the population in the workforce means that different personalities and backgrounds are thrown together to meet organizational goals. The management should ensure that all their needs are met by offering flexible work systems. Employees should be empowered to set their work hours, maintain a work-life balance, and have more control over their work to feel satisfied and stay on at their jobs. This will not only satisfy your employees and increase employee retention but will help you in achieving maximum workforce readiness.
8. Use technology
Technology can help management figure out patterns in employee turnover and take preventing steps accordingly. Different software is available that can help managers collect feedback from employees about their satisfaction with different aspects of the workplace. The software can then help managers determine which employees are the most dissatisfied and hence the most likely to leave.
Employee retention is an aspect of management that has been recognized in recent years by managers. In the face of tough competition and challenging economic conditions, organizations have realized that retaining talented employees is necessary to perform competitively and to develop a positive image in the community.
The best techniques for retaining employees involve investing in their learning and training, offering them flexible work options and creating an environment where they are encouraged to work to their best abilities. Managers can use a mix of these strategies to ensure that their employees stay on and continue to render their best services.