The profound power dynamics shift between companies and employees has resulted in the “Great Resignation,” which equates to potential revenue losses of up to 213%.
Therefore, companies are now compelled to reinvigorate their employee retention strategies in a highly competitive US job market.
The nine best employee retention strategies include astute hiring practices, flexible working conditions, paying market-related compensation and benefits, onboarding, professional development, skilled management, work-life balance, rewards programs, including wellness initiatives.
Recent exit survey findings have highlighted that employees are leaving companies in droves for reasons that can easily be addressed. So, I have compiled a must-read guide concerningthe nine best employee retention strategies that will set you apart from your competitors.
- 1. Hire Based on Your Company Values
- 2. Provide Flexible Working Options
- 3. Pay Market Related Compensation & Benefits
- 4. Excell in Onboarding
- 5. Focus on Professional Development
- 6. Develop Management Leadership Skills
- 7. Advocate For A Work-Life Balance
- 8. Promote Wellness Initiatives
- 9. Reward Conscientious Employees
- Related Questions
- How do you retain employees during Covid?
- What are companies doing to retain employees?
- How do you retain employees without money?
1. Hire Based on Your Company Values
Hiring employees in accordance with your company values is an imperative employee retention strategy.
Shockingly up to 80% of a company’s employee turnover rates may be attributed to hiring practices that are not aligned with a company’s core values.
Moreover, a recent Glassdoor survey indicated that 35% of hiring managers believe their newly appointed employees will tender their resignations before the end of the year.
To hire loyal and engaged employees:
- Ask questions during the interview process concerning your company’s values.
- Refrain from sugar-coating the less pleasant aspects of the new role.
Employees want to feel proud of their company’s brand and what it stands for.
Statistically, up to 79% of job candidates would decline a lucrative job offer if a company is unethical or does not uphold its values.
New generations are increasingly focused on advocating for ethical practices, taking accountability, and giving back to society. Therefore, companies are obliged to embrace their core values, more than ever before fully.
2. Provide Flexible Working Options
Remote working has become a divisive issue for employees following the pandemic. While some would prefer to work from home, others are excitedly “suiting up” for their daily office commute.
A recent survey highlighted that 1 in every three employees who are currently working from home would resign if required to work in their company office on a full-time basis.
Statistics bear this out as companies that allow for flexible work arrangements that include working remotely have 25% lower employee turnover rates than solely office-based employees.
3. Pay Market Related Compensation & Benefits
A startling recent Glassdoor investigation amongst recruitment and HR professionals indicated that 45% of employees who resign have done so as they were not satisfied with their salaries.
Surveys prove that only 24% of employees who fall into the “Generation X” category indicate that their salaries motivate them to remain in a company, 56% state that their health insurance benefit is a key retention factor.
4. Excell in Onboarding
Onboarding is a vital component of a prudent employee retention strategy.
It is a company’s golden opportunity to demonstrate its culture and make new hires feel excited to be part of a winning team.
Whether it is done virtually or in person, a comprehensive new hire orientation day sets the tone for the new employee’s tenure.
5. Focus on Professional Development
It has been statistically proven that 70% of employees are prepared to leave their current employment for better professional development and learning opportunities at other companies.
Employees are greatly aware of the fact that they need to upskill to keep track of technological advancements. Therefore, investing in their professional development and leadership skills is a key retention strategy.
6. Develop Management Leadership Skills
It is a well-known fact that employees leave toxic managers – not their companies.
While managers might have the required technical skills to excel in their field, it does not mean that they can manage people.
Teaching managers soft skills are vital as they will learn to mentor and coach a diverse team, including imperative skills like conflict and stress management.
7. Advocate For A Work-Life Balance
Surveyed HR professionals have indicated that up to 50% of their staff turnover can be attributed to burnout.
Employees need to feel supported in their efforts to attain a balanced approach between work and family commitments, especially when they are working from home.
Advocate for your employee’s work-life balance by encouraging them to set boundaries, take their vacations and provide them with time off for excessive working hours.
8. Promote Wellness Initiatives
The pandemic has demonstrated that health is true wealth, and employees need to feel that their physical and mental wellbeing is valued.
Successful companies retain their employees by supporting their physical and mental wellbeing by providing health insurance benefits, including physical, mental, and financial wellness programs.
9. Reward Conscientious Employees
It is certainly much easier to evaluate an employee’s results than the effort it took to achieve those results.
There are often situations in the workplace where employees need to make significant sacrifices to achieve their goals. Companies must recognize and reward those hardworking employees.
Leading companies have started to recognize that rewarding loyal employee is a vital component of their retention strategy.
A great example is a US company called Next Jump who has been rewarding employees who have gone above and beyond to assist their coworkers.
Other great examples include rewarding employees for their innovative ideas that contribute to the success of the company.
Smaller companies with limited resources can motivate their employees with cost-effective tokens of appreciation that include working flexitime or a shortened workweek.
How do you retain employees during Covid?
Retaining employees in a post-pandemic setting might not be feasible if companies maintain pre-pandemic mindsets.
A recent survey highlighted that approximately 38%, or 4 out of 10 professionals, believe their careers stagnated during the pandemic. While 66% of surveyed employees aged 18-24 feel that their jobs are in limbo.
Therefore, companies will have to address the following core issues to retain loyal employees post the pandemic: career advancement, salaries, and professional development.
What are companies doing to retain employees?
A recent Stanford University study found that employees who work more than 50 hours per week were less productive than those who work normal hours.
Innovative companies have started to reduce their employee working hours, revitalize their workforce, and incentivize them to remain employed.
Others have motivated their remote employees with small tokens of appreciation like online Netflix or Spotify gift vouchers.
How do you retain employees without money?
With so many employees feeling overwhelmed by Zoom fatigue, coupled with taking care of their families, there are many ways that companies can reward loyal employees without financial repercussions.
A great example of a prudent retention strategy is Google’s 80/20 employee program. It allows employees to work on other company projects aligned with their interests, which further develops their skills.
It has become abundantly clear that companies must employ innovative employee retention strategies to succeed.
They are now compelled to regularly re-assess their retention practices while offering market-related salaries, coupled with flexible working conditions to create a thriving company culture.