When jobs are aplenty, employees have plenty of choices. In the modern world, people no longer spend their entire career with one company and are willing to change jobs as soon as something better comes along. For employers, such job-hopping employees can be a nightmare.
So what can firms do to retain employees and keep replacement and retraining costs down?
Here are 5 employee retention strategies that really work:
On-boarding goes beyond simply handing new employees their access card and laptop, and assigning them a seat.
A 2007 study by consulting firm Wynhurst Group found that when new employees go through a structured on boarding process, they are 58% more likely to remain with the firm even after three years.
During on-boarding, make sure your employees are given all the information they may need to do their job well. This would include inputs about their role (responsibilities, KPI, goals), company reporting structure, payroll data (salary, bonus) and company policies.
Culture is made up of people. It’s not enough to simply publish your vision and mission on your website. Communicate your values, aspirations and purpose so your employees feel as if they’re part of something valuable and tangible. Institute a genuine open-door policy and foster an environment where they are encouraged to ask questions, provide feedback and offer suggestions without feeling as if they’ll be punished for their forthrightness.
Motivation affects how employees do their job and how well they do it. Are your employees motivated by monetary incentives like medical coverage and retirement benefits or do they care more about performance improvement initiatives? For the former, it’s important for firms to offer attractive compensation that is at least on-par with industry benchmarks. Use HRMS software like Spine HR Suite to simplify payroll calculations and focus on developing your most important asset – your employees. Also, a well-run reward and recognition system will let employees feel acknowledged for their good performance. Opportunities for performance improvement can provide a sense of achievement that can improve employees’ motivation and performance levels manifold.
Employees tend to be more loyal to employers who invest in their training and development. When firms provide opportunities for up-skilling and re-skilling, employees feel valued and motivated. Help them meet their ongoing training needs (say through certifications), provide a well-defined mentorship or ‘buddy’ programme and design employee development plans to keep employees invested with the company for the long term.
Hire people that are open to working in teams rather than soloists looking for individual glory. Clarify team and company objectives and promote a culture of collaboration and teamwork. Everyone is different so make sure you hire people who bring valuable synergy to the table despite their differences. Celebrate milestones and achievements. Even ordering some pizzas can work wonders with morale and teamwork!