You’ve built the perfect team. They’re talented, they complement each other’s skills, they perform outstandingly, they’re a joy to work with, and they create a positive culture. The only problem? You can’t sleep at night for fear that they might hand in their notice. Employee retention is a hot HR issue, which is why we’re covering the top six ways to encourage employee retention (and get a full night’s sleep).
The importance of employee retention
When you have a great employee – you want to keep them. Not just because you like them but because employee retention brings benefits including:
- Cost savings – replacement recruitment can cost from USD$4,000 to beyond;
- Performance – when an employee leaves, the performance of the whole team suffers until a replacement is recruited and up-to-scratch;
- Competition – when you have the best talent, you have a competitive advantage;
- Culture – high-turnover feeds negative cultures; low-turnover creates positive cultures that attracts positive employees.
Six ways to encourage employee retention
Put simply, you don’t want to let go of your best performers. But how do you go about keeping them and encouraging employee retention?
1. Hire well
An employee’s potential loyalty should be assessed at the very beginning of the recruitment process. During the interview ask candidates why they left their previous positions, assess their career objectives against what you can offer, and determine their cultural fit. If flags are raised – take your time to find the right hire.
2. Reward sufficiently
Money is important, but it’s not everyone’s loyalty motivator. Offer a competitive salary (one that enables the employee to afford to say) and complement it with the top employee perks and benefits that are valuable to employees. Examples include free parking, flexible working, gym membership, childcare, and remote working – benefits that mean something and would be difficult to give up.
3. Offer culture
Culture is crucial when it comes to retention. It determines how an employee feels when they step into work, how much freedom they are given to perform their role, how their performance is rewarded, and how much they can contribute to the company’s vision and strategy. Actively create a positive culture that makes employees want to stay.
4. Develop careers
A strong learning culture can lead to 30-50% increased retention rates. Instead of just offering a job, offer employees a career – one with the necessary tools, learning, opportunities, responsibilities, and employee empowerment to develop in. And, when employees achieve within that career, be generous with both praise and recognition.
5. Give employees a voice
Loyalty is a two-way street. Create an environment that encourages two-way communication, open doors, regular feedback, and transparent business performance. Not only does this involve the employee in the company’s journey, but it also provides an opportunity for pain-points to be raised, heard, and solved.
It’s also important to celebrate your employees. Highlight loyalty, praise performance, put out cakes for anniversaries, and make your company a fun company to thrive in.
Encouraging retention – the magic ingredient
What do all of these steps have in common? Engagement. Employee engagement is one of the biggest motivators for loyalty. It makes employees feel empowered, listened to, valued, and needed. Who wouldn’t want to stay in an environment like that?