Employee retention has a huge impact on your bottom line–and now is a great time to make some employee retention resolutions for 2022 that will pay off all year long.
Poor employee retention can be a pricey problem for any business. High turnover rates result in lost productivity and additional expenses such as recruiting, hiring, and training replacement employees.
In 2017 the REC (Recruitment & Employment Federation) released a report on Making the right hire and the cost of getting it wrong.
- 85 per cent of HR decision-makers admit their organisation has made a bad hire, and a third (33 per cent) believe that these mistakes cost their business nothing
- a poor hire at the mid-manager level with a salary of £42,000 can cost a business more than £132,000
- the hidden costs involved in bad recruitment include money wasted on training, lost productivity, and increased staff turnover
- four in ten employers (39 per cent) admit that the interviewing and assessment skills of their staff should be improved.
So with over half the year remaining, let’s look at 10 steps you can take as a business to retain your employees;
The first step in the process is to ensure you do it right from the start. Take time to really assess the needs of the business and the team. Turn over every stone with the hiring manager to ensure you draft job descriptions accurately. What has gone before is not necessarily what you need going forward. Take your time when recruiting candidates and interview them thoroughly. This will ensure both you and the candidate are 110% day one and there are no surprises around the corner
Offer a fair and competitive salary package
Know the norm for the position, your industry, and your area of the country. Are you losing employees because you are paying under their market value. Believe me, candidates who are in demand know their worth and they often have more than one opportunity on the table at any given time. If you lowball them, do you really think you are going to be the top choice?
In 2018, a survey by Glassdoor of people in recruitment, HR, and hiring managers found that for 45% of employees who quit, the top reason is salary. This reason was followed by career advancement opportunities, better benefits, and location.
Offer an attractive benefits program
Including items such as medical insurance, an attractive pension, or even perks such as health club memberships. Remember, salary is obvious but also look at more subtle benefits like paying for their parking if needed will all add value to the package on offer. It doesn’t hurt to think outside of the box
Ask your staff (not just HR) what they actually want. A survey by the employment website Jobsite found a significant discrepancy in perception between HR decision-makers and staff when it came to benefits. In particular, staff were less enthusiastic about office-based perks and social events than HR assumed they would be
Train and mentor your employees
Help them set goals for both their role in the company and overall career, and provide support to help them get there. A mentor will offer seasoned experience in the form of training and socializing the new employee to the company, and with an effective mentor, a new employee will quickly become a contributing member to your department and will therefore feel valued.
The benefits of a good mentoring program are felt by both parties. The mentor feels they are giving something back to the department by sharing their knowledge and experience. They will gain a better understanding of themselves through helping others and will create a fresh perspective on their role and the business.
The new employee will have access to quick advice and guidance, encouragement and clear information and honest feedback. Their integration to the business will be quick as they will have help in understanding the culture of the business
Put a priority on work/life balance for your employees
This can take the form of flexible work hours or even the ability to work at home for some positions. Maintaining a healthy work/life balance is incredibly important for your worker’s health and happiness. Failure to take this seriously can lead to very serious health issues arising – including stress, high blood pressure and burnouts.
Recognize employee achievements and contributions that go over and above regular job performance
Who doesn’t like praise? You can do this through regular, formal programs, such as “Employee of the Month,” or on an ad hoc basis. Manager recognition lets employees know that their contributions are appreciated by creating a positive and motivating environment. Peer-to-peer recognition helps establish a culture of caring and trust. Recognition reaches beyond the recipient. It creates an environment that attracts and retains the best talent and so will improve employee retention.
Leadership opportunities are also great motivators for empowering employees and increasing satisfaction
Give your employees the chance to take ownership of projects and to be engaged at higher, strategic levels when possible. Again, this makes them feel valued and allows them to make significant contributions to the business direction and strategy. This in turn will drive loyalty and a sense of belonging.
Offer regular feedback throughout the year on performance rather than holding it all for the formal review
This gives your employees the opportunity to change or amend any shortfalls or issues and reduces the likelihood that they will be unpleasantly surprised at review time when they may be seeking a pay rise as recognition for their contribution to the businesses achievement
Communication is key
Listen to your employees and encourage open dialogue for employee retention. Seek feedback from employees through such means as employee attitude surveys where employees can give confidential feedback on their opinions of your company in terms of satisfaction with the job, and suggestions on how their jobs and work environment might be improved.
Foster teamwork both in and out of the office
You can engage in formal team-building training at work but also coordinate outside opportunities such as company days/nights out (when this Covid mess is finished of course). This will in turn drive a sense of belonging and teamwork.
So there are my Top 10 employee retention strategies for 2021. Of course, this isn’t a magic wand to retain your staff but by putting these strategies into place, you are on the right step to creating a happier, content and hungry workforce who want to grow with the business and stay for the long term