The term ‘employee retention’ refers to the effort taken by a company to hold onto its employees. In the current climate, businesses are looking to work on their employee retention strategies primarily because the COVID-19 pandemic accelerated the rise of The Great Resignation; a record number of people have quit their jobs due to various factors including wage stagnation, lack of flexibility and work-life balance, amongst others.
Staff turnover is expensive; primarily, it has a negative affect on business in the long run as well as the fact that recruiting takes a much longer time than employees handing in their notice and leaving their role. Employee turnover and retention go hand in hand for the reason that turnover is the percentage of employees leaving and retention is the percentage of employees staying hence, having a high turnover percentage result in a low retention percentage and therefore, one would need to look within and re-shape the workplace to increase retention.
Below, you can discover our top 5 employee retention strategies for the current climate to help you reduce employee turnover.
1. Start at onboarding
The onboarding process should set the tone and give employees an immediate first good impression. Capture a new employee’s excitement and provide them with insight into the company culture, what is expected of them and also provide them with someone who they can turn to if the need for support arises. Having a strong onboarding process enables employees to feel motivated to give their best efforts from day one.
2. Offer competitive benefits
Apart from providing attractive compensation, it has now become commonplace to offer competitive perks and benefits to make your company stand out when attracting new talent and boosting morale of employees. Flexible working and remote work options, mental health and fitness stipends, home office budgets, company social events and upskilling programs are just a few ideas of perks and benefits your business might consider providing to employees.
3. Give importance to employee well-being
Keeping employee wellness – both physical and mental – at the forefront is good business practice. This is because physical and mental health affect work productivity; if an employee falls ill or feels burnt-out, they may take more sick days or make mistakes. The following are some examples of what your business can consider providing employees; health insurance, mental health resources, stress management programs and mental health days in the form of paid time off (over the paid vacation leave). Such incentives help employees feel supported and taken care of.
4. Communication is key
Open communication is an important factor in holding onto your employees. In order for them to feel connected, they need to be in the know with regards to the happenings of the company.
Providing opportunity for two-way feedback is crucial in driving employee loyalty. Managers should provide regular feedback to employees as this does not only help improve the quality of work but it also boosts productivity and increases determination. On the other hand, offering the possibility of employees to share any feedback they may have, their short-term and long-term goals and more, helps employees visualise their future at the company.
In addition, put aside work-related communication and make time to connect with your employees on a personal level. Social connection fosters employee engagement and makes a positive impact on productivity. Having a good relationship with your employees not only on a professional level but also on a personal one, solidifies loyalty.
5. Appreciate your employees
Employees want to feel appreciated, not only for the work they do but also for their progress and efforts. To succeed in showing gratitude to your employees, appreciation initiatives need to be consistent and authentic. Some businesses go down the route of having performance awards whilst others demonstrate employee recognition in the form of corporate gifts. Regardless of the format your employee recognition and appreciation programme employ, building a culture of recognition can have a great impact on your employees.
Conclusion
How do your employee retention strategies compare? By looking within, you can determine whether your business is doing the right things to drive employee satisfaction up and the turnover percentage down. Your employee retention strategy is key to reducing unnecessary and costly employee turnover and understanding the reasons why your employees stay or leave, and proactively addressing problem areas, you can create a culture that attracts and retains top talent.
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VC (VacancyCentre) is a leading recruitment agency in Malta, facilitating the resourcing of talent needed by organisations of all sizes with particular specialisation within certain industry disciplines, namely Finance, Compliance & Technology.
To find out more about how partnering with us can help your company’s recruitment needs, do not hesitate to contact us at [email protected]