Data shows that in 2021, 1 in 4 workers quit their job. Employee turnover is hurting companies.
As the world returns to normal, more people are looking for jobs. If you have any job openings, you want to hire the best people for the job. Once you hire the right employees, you must focus on keeping them.
Retaining employees isn’t always easy. You can lose bad employees, but you can’t afford to lose the good ones.
There are strategies companies can use to improve their employee retention rate. This is great news for companies that want to keep their employees on board. Read on to learn about ways you can improve your employee retention rate.
Why Are Employees Quitting?
Before discussing ways to increase your employee retention rate, we need to go over one thing. You need to understand why employees are quitting.
There are common reasons why good employees quit. Many of the reasons why most employees quit their job relates to their work environment. A big reason why many quit is because of the lack of respect or trust.
Giving respect to employees sounds simple. You would think it’s straightforward, but it isn’t something many employers aren’t doing.
One way that employees can perceive a lack of respect deals with the way their managers treat them. About 60% of employees report quitting because of their manager. Many employees don’t like the way that they’re spoken to by their managers.
Employees may quit if they feel their manager doesn’t trust them. This becomes an issue when superiors micromanage employees. This can be stressful for an employee.
Poor company culture is another reason why employees tend to quit. Employees want to feel connected to their company. If an employee doesn’t feel this way, it’s likely the employee will want to leave the company.
Poor company culture lacks unclear company values. It also lacks transparency. These are issues that employees don’t want to experience at their workplace.
All employees want to know they’re valued. An employee who feels underappreciated may not have the urgency to work. This can make an employee want to work elsewhere instead of in a company that doesn’t value its employees.
A top reason why employees quit is because of low pay. Don’t make the mistake of paying your employees low wages. Employees will not hesitate to leave for a better paying job.
Why Is Employee Retention Important
Increasing employee retention is a must for any company. Losing employees can hurt your company. It can hurt your bottom line.
Data shows that turnover costs U.S. companies $1 trillion per year. Yes, that’s one trillion, so you read that right.
The high price tag accounts for several things. Your company will have to cover the money to replace the employee. Doing so involves the time a new employee will have to undergo training.
During the hiring process, there’ll be one less employee on the team. This can lead to a loss in productivity. It can also mean there’ll be a loss of expertise and company knowledge if a veteran employee quits.
What if the employee who left was popular among peers? This can contribute to lower morale for employees left behind. Don’t let this happen in your company.
How to Improve Employee Retention Rate
Here’s the million-dollar question. What can you do to improve the employee retention rate in your company? There’s no one right solution, but you have to use the following strategies to keep good employees.
1. Foster Respect in the Workplace
It’s all about R-E-S-P-E-C-T! That spells respect. Yes, as you read, lack of respect is one reason why many employees quit.
Now, more than ever, employees want to have respect at their jobs. Do your employees feel their bosses respect them? If the answer is “no”, you need to take action ASAP.
Put yourself in your employees’ shoes. What are your employees missing? As a start, you can say “thank you” to your employees.
Saying “thank you” goes a long way. Greet them with a smile. Use your manners.
Every supervisor must learn how to do this. Your employees will feel valued.
2. Be Generous With Praise and Recognition
You can also show employees respect by praising them. Praise the employees who deserve recognition. Show these individuals that you know they’re doing a great job.
Recognizing employees fosters a sense of engagement. It gives them more motivation to work hard.
Recognizing employees with a cash bonus is great. Employees love this. You can base it on an incentive that acknowledges an employee’s dedication.
You can also give verbal feedback to employees who go above and beyond in their work. Give them a special shoutout. You can give good employees a company award.
It’s a good idea to create an employee recognition program. This type of program will provide so many benefits.
It will do more than help retain employees. It can improve productivity as well as encourage friendly competition among employees.
3. Promote From Within
Employees can leave if they feel like they’re stuck in the same position. Promoting from within is a great way to stop employees from quitting. Give an employee a promotion if the employee deserves it.
This lets employees know you value them. Let your employees know that the company is willing to help advance their careers.
If you want to promote more employees from within you need to help them grow. You want to see them grow as employees by giving them the chance to develop their skills.
It’s ideal to establish a training program. Employees who want to stay with the company over the long haul can join the program.
Employees who take part in the program will have access to valuable resources and tools. They should have access to books and online courses. They should also have the opportunity to attend workshops.
This is a powerful incentive for employees. You want your employees to know they have the ability to better themselves. It’s a win-win for everyone.
4. Pay Your Employees Right
One of the best ways to keep employees working for you is to pay them a decent wage. You have to pay them right or else they’re bound to walk.
As an employer, you need to keep up with industry compensation standards. You don’t want to garner attention for being a company that doesn’t pay employees a fair wage.
Offer fair compensation. Start new employees on a competitive base salary or an hourly wage. Be transparent when it comes to this.
What about the employees who are already part of your company? You can offer them raises. You can also offer them a bonus.
Give your employees the ability to cover their cost of living. Most Americans have trouble covering their expenses. As the price of everything goes up, your employees should have fair compensation.
5. Provide Great Benefits and Perks
If increasing employee retention rates is your goal, you have to give employees a reason to stay. What better way is there than to provide them with great benefits and perks?
This is a significant part of employee retention. Offer them benefits and perks that give them a sense of security.
Yes, consider the usual health insurance and life insurance coverage. You can offer paid time off and family leave. The same goes for tuition reimbursement and matching 401(k) contributions.
These are standard benefits and perks. You must offer the top benefits and perks in your industry.
One benefit that employees who are parents may want is childcare support. This is one benefit more companies are offering their employees. With the cost of childcare going up, this benefit can be a big blessing for parents.
Consider the office environment. If the office atmosphere is unwelcoming, you’ll need to add perks that can make it more inclusive.
You can buy healthy snacks for the employees. Create a break room where employees can relax. Let employees dress casually on Fridays.
6. Create a Safe Environment for Your Employees
Focus on creating a safe environment for your employees. Your employee retention rate can take a hit if your company lacks a safe environment.
It must be free of all forms of incivility. There’s no room for gossip, harassment, or workplace violence. These elements are a threat to employee satisfaction.
Supervisors should carry out a risk assessment to identify hazards. If there are any dangers in the workplace, you’ll need to address them.
You may need to let go of employees who are detrimental to your company. This can include employees who harass coworkers. It can also include employees who cause unnecessary distractions.
Doing this can help to ensure the comfort of your employees. Let your employees know that you care about their physical and mental well-being.
7. Offer Flexible Work Arrangements
Employees who grow tired of their work are more likely to quit. Employee burnout is a real issue. Offer flexible work arrangements to keep employees happy.
A recent survey shows that 55% of employees want flexible or remote work options. One way to provide flexibility is to allow employees to work from home. Consider letting employees work from home at least once a week.
If it’s doable, you can allow employees to do remote work. This can give them some relief by reducing their travel and wasting less gas.
Let your employees have an adequate lunch break. Employees who feel rushed may skip lunch. This can make them feel tired toward the end of the workday.
You need to encourage a proper work-life balance too. No employee should feel the need to be on 24/7 work mode. Promoting this balance can encourage employees to take time off.
8. Emphasize Teamwork
Let your employees know they have support from their colleagues. Do this by emphasizing teamwork. Employees should have peace of mind knowing they can count on others if they need help on a project.
Plan to facilitate events that promote teamwork. Create opportunities for your employees to get to know each other. This can help create a family environment.
9. Avoid Sudden Changes in the Workplace
Change in the workplace may be inevitable. It can cause employees to experience stress. Too many changes can affect employee retention.
Sudden change isn’t always a good idea. If employees feel there’s a lot of unnecessary change, they might not want to stick around.
If you need to make a drastic or major change you need to communicate it to your employees. Don’t catch them off guard. Inform them ahead of time.
10. Seek Feedback and Provide Actionable Feedback
Employees like to know how well they are doing with their work. It’s important to give them feedback. Feedback is critical to employees who seek to improve upon their work.
Giving them feedback shows you care about their performance. It also shows them the company wants them to succeed.
Your employees will need to provide you with feedback. Give them the option of sharing constructive criticism with their supervisors. Let them also give constructive criticism to the company as a whole.
One way to gather feedback from employees is to invite them to complete surveys. The surveys should be anonymous. This way they’ll share feedback without the fear of reprisal.
Employees on their way out the door can provide your company with helpful feedback. Ask them to complete an exit survey. They can be open with you by letting you know what areas you can work on to retain employees.
11. Improve the Onboarding Process
You may need to improve your onboarding process. A new employee might seek to quit even before starting their first official day at work.
You don’t want to strain new employees with so much paperwork. It’s best to use HR software to streamline this process. You can learn more about HR software by visiting https://WorkBright.com/.
How to Improve Your Employee Retention Rate the Right Way
Are your employees leaving your company? This guide teaches you how to retain employees. Use these strategies to improve your employee retention rate.
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