Employee retention levels have taken a plunge in recent years and companies have yet to understand what is causing this phenomenon. Having a high employee turnover rate causes companies to spend more money recruiting a team to hire employees rather than figuring out the root of the problem. These expenses quickly snowball, as hiring and training processes also take time and money, undermining the companies’ revenues.
As this worsens, the company’s image may be damaged as clients (and potential candidates) take note of the company’s failure to keep their hardworking staff from resigning. So, the question for employers is, what can you do to avoid this? Here are 4 of the best ways to retain your employees as well as help establish company loyalty.
Communication is the door to connections and opportunities. Practicing clear communication with your employees helps everyone stay on the same page about expectations and tasks to be completed. This is important for employees because spending one’s valuable time performing a task only to find out it was not the right one can be frustrating and damaging to a worker’s motivation.
Note that this communication should go both ways; be open to what your workers have to say and be ready to take notes. It is not just the customer that matters, but also the workers who run the whole operation. This can happen by either promoting direct communication with managers or using online forums and systems dedicated for employees to express their ideas and concerns about the company. For example, if the environment is already tense and there is little inter-office communication, an online anonymous system might be a good idea for getting your workers to share the thoughts they would otherwise keep to themselves.
If the main concern is to find the root of the problem, then consider implementing exit interviews with the employees who have already taken the steps to leave your company. In other words, directly ask what led them to take this decision, if it was a problem with a department, a facilities problem that was never addressed, or the company’s culture itself that did not fit their needs. Vital information, like this, will be the key to reducing employee turnover rates of your company once they are addressed.
Update Salaries & Benefits
According to multiple online surveys, roughly one-third of employees cite “no pay raise” as the main reason for switching companies. This is especially true when looking at new talents with a few years of experience. Salary standards are in constant fluctuation and companies should stay on top of them, because their best and brightest staff are certainly doing so. Additionally, companies that regularly update salaries attract more and better candidates.
One method for doing this is to schedule yearly revisions in industry wages and coordinate with each employee’s performance to adjust wages. Another popular method is to increase existing staff wages based on the wages of new hires for the same positions/experience. The idea is that if you can’t find new employees for the same wages your current employees are making, then your employees are probably looking to jump ship.
Related to salaries are company benefits. Revise healthcare benefits and retirement plans according to new policies and country laws. Companies with good health benefits are highly sought after especially since the COVID-19 pandemic.
Engage Your Employees
Talented workers are not just attracted to companies because of their salaries anymore. They want to work with a company that provides them a well-rounded lifestyle. By giving them opportunities to engage with the company and with themselves, employers can make their company a more attractive option in the job hunting process. This begins by involving them in decisions that affect their daily activities and the spaces they work in.
Make the workplace more comfortable for them by involving them in renovations and decoration projects. This is the place where they spend most of their time, and involving them in this will help them feel more at home. It also goes hand in hand with making the workplace fit their work styles. This is because some workers like colorful and dynamic places to be active in and feel productive while others prefer more quiet and closed spaces to concentrate. Ask employees what kinds of tools they find helpful to their productivity levels or if they find some equipment should be replaced or upgraded to help them work efficiently.
Motivating employees to use their creativity and unique skills in the workplace can help them form a connection to the company all while increasing productivity. Consider providing continued education programs, seminars, and workshops for employees to grow in the industry and become even bigger assets to your company. This helps keep your workers motivated in the work they do all while learning new and efficient technologies and trends to stay up to date in their field.
Engagement should also be extended to engagement between employees. Sometimes the reason for employees leaving the company is conflicts or negative relationships between coworkers. To avoid this, create opportunities for them to engage with and get to know one another. When you have friendships in the workplace it is easier to go about your daily tasks without feeling alone or isolated from the whole.
A way to get them to interact is the classic team projects that help get tasks done quicker and more creatively. Get them to spend time together outside of work hours in activities like trips, dinners, volunteering programs, holiday events, and even clubs about activities they like. This helps boost morale and inter-office relationships. Lastly, consider implementing mentorship programs to connect new and current employees to build office relationships from the beginning.
Newer generations of employees are increasingly attracted to companies that genuinely care about their workers. Show them that your company truly looks out for its employees by demonstrating flexibility in different areas of your operation. Start by promoting a work-life balance; if an employee does not learn to balance their everyday life with their workload they might feel overwhelmed and production rates will be negatively impacted.
Learning to separate work and life in an efficient way means that workers will be able to confidently leave their daily struggles in the back of their minds while actively focusing on the tasks at hand. This can demonstrate why it is important to care about employees’ mental and physical well-being. Offer them programs that prompt this, such as workshops that teach how to manage stress and anxiety or fitness programs for them to stay active.
This flexibility also extends to scheduling and work settings. Due to the pandemic, we have seen a rise in hybrid and remote work positions in order to keep everyone safe from exposure. However, with the ease of countries’ restrictions, workers are at a dividing point where some would feel safer working remotely and others work strictly in person because they miss office dynamics.
Talk with your workers and figure out what works best for them; it may be a hybrid plan in which they are all required to come in a specific day or two to the office and the rest would be worked from home for safety precautions. It is up to you and your employees to determine the best course of action for both their benefit and that of the company.
Recognize and Reward Work
Employees that feel recognized and appreciated for what they do are motivated to keep working for their company. Acknowledge their hard work through weekly or monthly feedback; don’t just show them how much they have completed but also point out how it has benefited their project and the overall company. Seeing that their work amounts to something is crucial for employees to see their future in your company. Implement rewards for their work, such as verbal encouragement or commissions and incentives that motivate them to excel at their tasks. Make sure the rules and calculations for these rewards are straightforward so workers can plan and motivate themselves to reach new goals on their own.
Loyalty Increases Employee Retention
Loyal employees are those who have reasons to stay with the same company for the foreseeable future. If they find that your organization provides them the experience and environment they want, they will be driven to stay and use their talents to benefit the company’s performance. Humanizing your company utilizing these ways helps employees feel tied to the company’s progress and success. This type of connection with your employees builds trust and loyalty; not only will your employees feel the change, but your production levels and company image will feel the impact too.