Any company in this world wants to keep their top talents to themselves. They know that in one moment, they can lose them when other companies can propose a better offer and take them away. Unfortunately, a company’s knee-jerk reaction is always to increase compensation.
Yes, compensation is important to an employee, especially when their job title and scope are higher than that of an executive. But what if this offer backfires and your top talent still leaves? What’s more important than money?
Contrary to popular belief, employees seek more than just monetary compensation. They look for recognition, appreciation and benefit packages appropriate for their contribution to the company. When employees are no longer appreciated, they will go to job portals and say goodbye to you and your company.
Many companies believe that simply replacing employees is as easy as counting eggs, but they need to realise that in the 21st Century, many fresh graduates and employees realise their worth. Monetary compensation and benefits aren’t enough to retain them in your company, and they won’t hesitate to jump ship when they notice the signs that the company is collapsing.
Research by the Bureau of Labor Statistics reveals that the average employee changes jobs 12 times during their career, and the current average tenure at a workplace is just over four years. It shows that work longevity is no longer applicable at this age, and employee turnover is high.
High employee turnover will affect the ones that stay behind. They need to pick up the work left by the resigned employee and lower the company's overall productivity if you fail to find a competent replacement.
Seeing employees come and go within the company can also cause distress in existing employees. This shows them that the company they work for is having trouble or the management has little regard for their employees. This can cause lowered morale, and turnovers will increase rapidly due to doubts and anxiety.
Employee retention refers to an organisation's ability to retain employees, resulting in a more stable and productive workforce. Companies that want to keep their employees should establish policies and programs to reduce employee turnover.
Companies with high employee retention rates have a significant advantage when meeting their business goals and recruiting new hires. A well-established and well-executed employee retention strategy is a critical competitive differentiator. A company's ability to retain its talent, particularly in a tight job market, significantly impacts its operational efficiency, as employee turnover can cause disruptions.
All companies and employers must prioritise employee retention. When an employee leaves the company, it can result in various expenses for the employer, such as hiring, onboarding and training a new employee who will take time to become productive.
Moreover, high employee turnover can have adverse effects on team morale. Interpersonal relationships are crucial for the overall job satisfaction of the employees.
On the other hand, when an employer secures employee loyalty over the long term, it can lead to numerous benefits. Employees gain experience and knowledge and become more valuable to the company. This means that the longer employees stay, the more advantageous the company is culturally and financially.
Create An Inclusive Environment
A hostile work experience can significantly impact employee attitudes, so fostering a workplace culture where everyone feels heard and respected is crucial. You can achieve this by promoting inclusion within your organisation.
Offer training programs that cover what inclusion is, how to recognise and overcome biases, and how to communicate respectfully. Make sure to update your policies to ensure that harmful behaviours such as bullying, harassment, and discrimination are not tolerated. Educate your employees on these policies and provide a transparent process for how any issues they report will be resolved.
Not all employees may feel comfortable speaking up about toxic work environments. Therefore, it's crucial to proactively maintain a positive work environment that promotes safety and acceptance. When employees feel safe and valued, they are more likely to be happier and more productive at work.
Providing skills training to employees can boost their confidence in their jobs. You should offer courses that cover the technical skills necessary for their current roles and courses that prepare them for future roles.
Workplace training is vital, and it's difficult to overstate its significance. When retaining employees, training is an excellent tool for engaging people. It assures them that you're invested in their careers and qualifies them for promotions when new roles become available. This can save you the hassle of finding new talent externally.
Offer Career Planning
To show your employees that they have a future with your organisation, it's important to help them plan for it. One effective way to do this is to include career goals in their one-on-one performance reviews with their managers. Take the time to listen to their concerns and aspirations and work together to create a roadmap for their career growth.
Direct them to training options to help them develop the needed skills and set goals that managers can review regularly. By demonstrating your support for their career goals, you can encourage your employees to see your company as a part of their long-term plans.
Teach Soft Skills
When individuals have the necessary skills to adapt to new work styles or collaborate efficiently, productivity increases, and employees become motivated. To ensure your workforce thrives continuously, consider providing training in soft skills. This will equip your employees with the skills needed to succeed.
Moreover, it is advisable to offer training in soft skills related to wellbeing. Stress management, mindfulness, and time management courses can help employees maintain a healthy work-life balance and prevent burnout.
When employees have the skills they require to navigate the workplace successfully, they are more content and satisfied with their jobs.
Rewarding employees for their hard work can take various forms, such as tangible or intangible rewards. It's important to note that some rewards, such as being appreciated by your team and having a good relationship with your manager, cannot be easily quantified.
Additionally, promoting employees, giving raises, and offering internal hiring opportunities are longer-term ways to recognise and reward employees for their achievements. These actions convey the message that you are attentive to the progress of your team members, value their contributions, and are committed to helping them achieve their long-term goals.
To attract and retain great employees, you need more than just advertising yourself as a good employer. Nowadays, employees seek fulfilling jobs that offer a healthy work-life balance. You must promote your company culture and follow your promises to build a strong talent pool.
By proactively implementing strategies to retain employees, you can create a sustainable work environment that will benefit you in the long run. You won't have to rely on flashy gimmicks or constant pay negotiations to keep your employees happy.