Millennials overwhelmingly consider career development opportunities to be one of the most important elements of a company. However, only half of employees in a recent study said their employers provide career development opportunities that meet their needs and chances for advancement. People have a natural desire to grow and move forward, and making opportunities for them to do that by developing their careers is a fantastic way to boost retention.
An attractive healthcare plan is an ideal strategy for recruiting and retaining high-value employees. However, offering improved health benefits is also relatively expensive. HR team members have a lot of power to do good in this instance.
Incentivize employees to adopt healthier lifestyles or achieve fitness goals. Naturally, raising salaries is not an inexpensive strategy.
The study found that the happiness and satisfaction generated by the thrill of a raise lasted more than a week, but still less than a month. One possibility that's interesting to consider is that regular evaluations and raises may be seen as more of a plus when they're part of a proactive and robust employee retention strategy.
Second only to healthcare in importance to employees, a retirement plan is hands-down one of the best ways to incentivize employee retention.
A MetLife study found that retirement benefits were a key to earning employee loyalty. In fact, four in 10 employees said retiree benefits are a strong reason to stay with their company.
However, there is a major caveat to k retirement plans — they have to be well-run. A healthy k optimized for employee retention has high participation rates, an emphasis on accessibility, a clear and scheduled onboarding process, and access to personalized financial advisory services. And all that comes down to HR.
In fact, an optimized k can actually save money for everyone involved, and be a lot easier to manage than you might have thought. This strategy covers a broad range of potential employee benefits and tactics - like leave benefits, flexible working benefits, wellness benefits, and family benefits. Wellness and a good work-life balance are about providing your employees with the tools they need to be happy in their job and thus much more likely to stay.
These types of initiatives can include:. Wellness and work-life balance initiatives help your employees live full and satisfying lives beyond their employment. More interviews? Just when we were solving the turnover crisis? Stay interviews are one of the most direct and hands-on forms of employee retention in this list of strategies.
Want to know what you can do to make sure you are focusing on retaining your employees? Just ask. In essence, a stay interview is a conversation between employee and manager about what makes the employee keep working for you. Employees will take note.
People feel valued when there is actually proactive listening. Just the act of acknowledging their opinions can make employees feel important and help increase retention. Related to both k s and work-life balance initiatives, financial wellness is a service that provides employees with knowledge and guidance about their unique financial wellbeing.
Naturally, one of the most common reasons for leaving a job is to obtain one with better pay. This can be mitigated by offering financial wellness and advisory services — helping the employee maximize their paycheck, plan for the future, and make complex financial decisions.
As the focal point of employee financial decisions, HR has the power to make a major difference in how employees view and utilize their compensation. Choosing the right solution for your organization You go through the process of screening applicants, interviewing potential workers, hiring, and training them, expecting them to remain long-term.
If they end up leaving, you must repeat the whole process over again. Maintaining your employees, as long as they are a good fit for the company, is crucial to a successful business. A low employee retention rate will hurt the organization. How do you keep your best employees around for long-term, and what employee retention strategies will work for you?
It all starts with who you hire. Hiring the wrong employee can go a few ways: they either quickly leave or cause existing employees to resign. Either way, you end up with a revolving door of staff and have to spend a lot of time and money hiring a new team.
As you go through the screening process of applicants, take a thorough look at their resumes. What does their work experience look like? Leaving a job would require severing or rearranging these social and value networks. Thus, the more embedded employees are in an organization, the more likely they are to stay. Companies can increase employee engagement by providing mentors, designing team-based projects, fostering team cohesiveness, encouraging employee referrals, and providing clear socialization and communication about the company's values and culture, as well as offering financial incentives based on tenure or unique incentives that may not be common elsewhere.
Employers must be responsive to the wants of employees. Prior to the COVID pandemic, research found that nearly a third of workers sought out a new job because their current workplace didn't offer flexible work opportunities. After , many workplaces have remote work and flexible scheduling options that have been put to the test. Employers can use this new flexibility to their advantage. Employees want to be recognized for their achievements.
Employees who have the opportunity to move around within a company, whether to new jobs in different departments or by promotions, are more likely to stay with that company. Employee benefits also play a role in retention. Offering a competitive benefits package, in addition to competitive pay, reduces the likelihood an employee will find the grass greener elsewhere. Practices that contribute to retention arise in all areas of HR, and all roles within an organization will need to work together to develop and implement multifaceted retention strategies.
Broad-based and targeted strategies, or a combination of both, may be appropriate depending on the circumstances. Effective practices in a number of areas can be especially powerful in enabling an organization to achieve its retention goals. These areas include:. Broad-based strategies are directed at the entire organization or at large subsystems and are intended to address overall retention rates.
Examples include providing across-the-board market-based salary increases, changing the hiring process to incorporate retention-related criteria and improving the work environment. The data needed to help a company determine which broad-based strategies to implement typically come from three places:. Targeted strategies are based on data from several key sources, including organizational exit interviews, post-exit interviews, stay interviews , employee focus groups, predictive turnover studies and other qualitative studies.
This information can lead an organization to determine more specifically where a problem exists and to develop highly relevant and linked strategies to address the issue. For example, if female professionals are departing the organization in significant numbers, a company could review common reasons that women give for leaving a company and develop strategies to specifically deal with this group of employees. People managers are key in the effective and efficient administration of an employee retention strategy.
Having a management team that is educated about employee motivation, retention strategies, benchmarking and best-practices is critical to the success of the program. The following steps taken together can yield the information that an organization needs to determine the extent of its problem and to help shape the retention strategies that are implemented in response.
Turnover rates vary within different industries and occupations, but one large survey by LinkedIn found an overall annual global turnover rate of Other statistics related to employee retention are revealing:. High turnover has many costs and consequences. According to PeopleKeep , they also include:. You might assume that all it takes to reduce turnover is to increase wages, but most employees today want more than money.
They also want opportunities to improve their skills, advance in their careers, and enjoy a healthy work-life balance, among other things. So, retaining employees requires more than raises.
You need a well-rounded employee retention plan that will help your people want to stick around. Your plan should focus on five areas:. Then put it in writing.
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