An employee retention strategy helps companies eliminate unnecessary employee turnover with higher retention. This plan saves companies from productivity losses and promotes better company-customer relationships.
Most companies incur heavy losses due to employee resignations every year. This fact is one of the key reasons why these companies ought to adopt strategies that let them survive the rat race. The trends in some key surveys reveal employee resignations are due to petty reasons. So, a company that properly addresses the issues and chooses the best employee retention strategies won't suffer in the long run.
An employee retention strategy helps companies eliminate unnecessary employee turnover with higher retention. This plan saves companies from productivity losses and promotes better company-customer relationships. Effective retention contributes to a healthy work culture at the company. Without further ado, let's throw some light on a few such strategies that prove beneficial in the long run.
What do the studies reveal?
Arecent survey on Workforce Retention conducted by the American Psychological Association revealed that nearly 60 % of working Americans stick with current employers owing to existing benefits and nearly the same number stay because of pay. 67 % of those who stay feel their job is perfect for their capabilities.
As the employees' talent goes unappreciated, they frequently change companies. Most employees follow this tradition to stick to a company that values them finally. Even companies face a huge loss when they need to invest in training the new employees.
Comparatively, the figures are tough in India. More employees are expected to leave their jobs this year compared to 2021 with some sectors facing widespread resignations. The average attrition rate is now set at 19%, which is a whopping increase of 57% compared to 12.1% last year. This survey was conducted by HR consulting firm Omam Consultants with data pooled from 100-plus companies across 18 major industry sectors as part of their insightful salary increment and workplace trends survey.
The data, shared exclusively with ET, show banking and financial services, e-commerce, IT, ITeS, pharma and healthcare will see attrition rates of around 30%.
Going by the statistics, the cost of training the new employees proves costlier by more than 20% for the company, every year. On the contrary, investing in employee appreciation programs costs much less. These programs are ultimately beneficial as the experienced employees contribute to the company's rapport.
Onboardings made better
As a business owner, you must brief your employees regarding the work culture at your company. The employees are completely unaware of your office environment. Introducing them to the norms of a company, the procedures company follows, and other policies will ensure transparency in onboarding.
Let the employees know what to expect from the company and motivate them to succeed. This approach will contribute to an effective retention strategy and help you reap rich benefits. It is vital to not only introduce the employees to everyone in the organization but also make them comfortable. The employees won't consider joining your organization when they connect easily through your healthy onboarding plan.
Are managers culprits for wide-scale resignations?
Often, we hear employees resigning from the companies because of their managers. Employees are more likely to engage whole-heartedly with the company when the management is effective. A company ought to have the best managers who are not just experienced in their work but also polite. If your employees are leaving in a row, maybe it's high time you think about changing the manager.
40% of the organisations have mentioned that employee engagement initiatives are failing since there are less people who can devote time to the process, as revealed by a survey conducted by Leena AI, a technology solution geared to gauge the employee experience.
The survey listed 27% of organisations pointed out lack of interest from leaders towards employee engagement. The report, Employee Engagement & Hybrid Workplace Report 2022', gauged employee engagement across 250+ enterprises globally, even in India and the US, highlighting how employee engagement suffers due to unclear definitions and skewed goals, even struggling to analyse the ROI involved.
No benefit fixes the damage caused to the company due to a bad manager. If your manager isn't appreciating or your employees notice a lack of their growth, they will leave. Employee engagement is good when your manager perfectly manages things. A better way is to collect feedback from your employees and ensure they can anonymously share the same. According to the employee feedback forms, your company may work on the weaker areas having scope for improvement.
Investing in the biggest assets
Your employees are amongst the biggest assets of your company. Investing in the growth and development of your employees offers them the opportunities and your company. To stay ahead, you must invest in continuing education for your company. Your company will be well aware of the latest technological advances which will boost productivity. When your employees experience satisfaction and get what they expect, they will bring high ROI to your company.
Mentorship programs do their bit.
Effective employee retention involves mentorship programs that make everything easy for the employees. Your employees are likely to encounter doubts or have queries regarding their work. Sometimes, they might look for someone to guide them in their routine tasks. At this point, mentorship programs are the best thing to work in favor of both sides.
You may introduce the employees to their respective mentors through these programs who will guide them when needed. Your company will witness the employees' interest and growth when they have someone by their side. The employees know they can look forward to a responsible person when they are at a mistake. This factor helps in improving the work environment and aid in enhanced retention.
Mental health is important.
One cannot deny that a sound mind dwells in a healthy body, and mental health is no different. The mental health of your employees is as important as their physical health. So, you must ensure that the well-being of the employees at your workplace is preserved. As the business owner, you must know the importance of the mental health of the individuals working with you.
If your employees are experiencing numerous benefits or perks of joining your company, you are doing good. You are safer when you offer your employees what they expect the least. You may work with the HR team of your company. Together, you may come up with fresh ideas that will strengthen the mental health of your employees and boost their morale. While employee illness makes up to 50% of turnover, you may take the initiative to offer them the work-life balance they seek.
Rewarding your valuable employees
Rewards and recognition remain a popular strategy for retaining employees in the hybrid work setting. According to the Employee Engagement & Hybrid Workplace Report 2022, nearly 50% of the respondents admitted that rewards help in engaging their respective employees.
Onboarding the new employees for your company is not the only task before you. A business owner must also consider rewarding their employees by evaluating their results. Many of your employees might be sacrificing a lot to achieve a specific goal at work. You never know when one of your employees might devotedly work for your company while making a big sacrifice. As the business owner, you need to note your most dedicated employees.
You cannot afford to miss out on any of the hardworking employees who work hard for your company. Many companies and organizations of repute reward their employees with various awards based on their performance and attendance. These award shows provide recognition of the employees' performance instilling a positive attitude in them to do better. Recognition aids in their retention too. Employees tend to come up with fresh ideas when companies recognize their efforts. This encouragement enthuses employees to put in more effort thus enhancing productivity in routine operations.
Good pay attracts effort.
There are some set benchmarks of any industry that a company must meet. You ought to offer fair pay to your employees. Your employees must be paid what they deserve when they have top talent. This will strengthen your ability to attract employees and ensure employee retention. You must never forget that compensation is also a part of the work appreciation process. So, it is better to pay your employees with good remuneration. They will feel their efforts are valued and would tend to stay in your company rather than look for better opportunities.
Every experienced employee counts
When you invest in employee retention, your company will have the most experienced employees working for long. This retention will benefit your organization in the long run as they are well aware of everything. Experienced employees know your company's ethics, work environment, and culture. A teacher tends to match the pace of the company they work in when they have given considerable time to the same place. This fact helps to motivate the new employees as they have an example before them. Ultimately, the experienced and new employees work together to boost the company's productivity.
Action plan to retain top talent
There are myriad benefits of retaining employees for a company or organization.
∙ Fulfilling the resource needs of the employees will help your relationship with employees thrive in the long run. When you know your employee needs and try from the beginning to fulfill them, you should retain employees.
∙ You need to provide clarity to the roles and responsibilities of your employees too.
∙ Transparency within the company will further help win the employees' trust. They will be comfortable interacting with you and work better when they notice transparency.
∙ Constant communication will boost the positivity in the company culture. Employees tend to feel connected and safe with the company when they have a great atmosphere at the workplace.
∙ Employee engagement within the organization will ensure trust and promote retention. You may conduct regular meetings to discuss goals and how to fulfil them. Workplace flexibility also makes a huge difference in employee behaviour.
It is quite clear that the right strategy from the beginning will ensure your employees don't leave the company. Assessing the weaker areas in the functioning of your company and working upon them will make a difference. When you try maintaining the work environment at your company one by one, you will notice the change.
With 30,000+ hirings every year, serving 11 Fortune 500 clients and 75 top 500 Indian brands for their recruitment and placement needs, 2COMS is well-placed to be your recruitment and staffing partner. Contact us to know more about 2COMS and how we can help you hire top talent in your industry. Visit https://www.2coms.com/ today.