The Building Blocks of a Successful Employee Retention Strategy
Achieving employee retention is a difficult task, but it’s worth the effort. When businesses invest in resources to keep their employees onboard they see increased efficiency and lowered costs. A strategy for retaining workers can comprise of efforts such as conducting exit interviews with departing staff so you know what could make your company more attractive or improving management training programs so that new hires are comfortable when starting on the job!
Employee retention refers to the ability of a business to retain its workforce by investing time and money into keeping them from leaving before any potential issues have been addressed through improved communication between supervisors/managers and front-line staffers (through events like town hall meetings) or better product offerings which will be discussed later on this page under “What Can Business
Employee Retention and Cost of Turnover
According to a new study, the cost of turnover for millennials is over $30 billion annually. Studies show that changing employers more often than other demographics can have significant financial implications – in some cases double what one might pay their original employee salary. The higher up you go on an organization’s ladder, the greater and riskier it becomes when replacing employees as senior-level executives costing upwards of 400% of their role’s salary will be needed to replace someone who leaves from such a position.
Employee retention strategies are especially important today given how costly turnovers can become with Millennials’ frequent changes in employer resulting in costs being almost double at times compared to those working jobs without this issue or older generations change they won’t need nearly as much money
If you really want to understand the costs of replacing an employee, don’t just look at recruiting and relocation fees. Consider all the time spent finding a new hire, signing bonuses for enticing workers away from their current employer (and then competing with other companies vying for talent), resources wasted when your team member is out sick or on vacation instead of completing assigned tasks—even opportunity cost as employees may be forced to stop working on important projects in order get back into full-time productivity mode after taking care of business elsewhere.
Be Mindful of Your Turnover Rate
It’s no surprise that we are always on the lookout for ways to reduce turnover rates in our business. While voluntary departures, let-goes or firings may be included in these numbers, there is a significant hard and soft cost associated with replacing an individual role within your company.
Think about how many hours of interviews you will have to go through as well as all those resumes – not only does this take up time but it also costs more money than if they stayed!
Creating an Employee Retention Program
An employee retention program is an excellent way to find new opportunities and provide employees the ability to grow in their career. A recent study from Harvard Business Review found that successful companies have these important components when it comes down to creating a cohesive, well-rounded retention protocol:
Establishing priorities for future leaders by focusing on clear goals; recruiting only qualified candidates with proven interest or experience through careful selection process (to ensure quality); providing management training programs tailored towards your company’s needs.”
How to Boost Retention and Manage Your Retention Program
Internal mobility is an essential part of retaining employees, sustaining success and growing your company’s legacy. It refers to the movement of employees across different roles within an organization. For it to function properly this must be a foundational element in corporate culture and management needs accountability for effective internal mobility strategies.
Strategy is a word often used in business, but not always understood by those without the experience. Strategy can be thought of as something that helps your company achieve their goals and objectives with smart planning on how to get there from where they are currently sitting. After all one defines what success looks like for themself at this time, it’s important to sit down and identify any strategy gaps that may have been created along the way – AKA think about which part didn’t go according or was forgotten during implementation process (AKA “The Lattitude”).
Does your company have a talent pool? If not, establishing one is key to improving internal mobility. You can read more about how you can do this here or download our free guide on the subject if that sounds like something you’re interested in!
1) Hire the Right People
Just like taking care to pick the right person for a role, it’s important that you create different roles and make sure they are well defined. If someone is an excellent fit for your company culture but not what they need in this particular position, then be open with them so there isn’t any confusion or wasted time.
2) Make Sure Your Compensation Packages Are Competitive
Offering competitive salaries and benefits will make your company attractive to top talent. What’s the point in offering a great work environment if you can’t offer comparable pay? Consider what other companies are paying for similar positions, especially those located where costs of living is high or lower than yours.
3) Show Your Employees They’re Valued
You may not realize it, but according to Harvard Business Review job search activity increases right before a person’s birthday. Celebrating an employee’s accomplishments or their birthdays can boost retention because of how happy they feel when you celebrate them. You should do this on a regular basis so that your employees know just how much you appreciate and value the contributions he/she makes to your organization.
4) Be Flexible
You want to be sure your team members are allowed to work remotely and have the appropriate training. This will prevent employees from seeking opportunities with other organizations that can provide a better balance between work life and home life, which is likely what they desire most.
5) Enhance Engagement
The time and effort you put into measuring employee engagement will have a large payoff. Engaged workers are likely happy workers, which means they may be more willing to stay at your company for the long-term. Moreover, disengagement can cost up as much as 34% of an employees salary annually according to recent research on this topic by _____ (insert name).
Effective management assessment requires identifying specific goals that should also include quantitative ways to measure progress so managers know when their team is progressing or not in meeting expectations; clear communication with current staff members about how they might help themselves become engaged through work responsibilities like networking outside of office hours or continuing education opportunities offered internally; and finally implementing a detailed plan of action based upon those identified areas where improvement
6) Encourage Internal Upward Mobility
People want to work for firms where they can grow their career and climb the corporate ladder. If team members see plenty of examples of upwardly mobile colleagues and understand what it takes to move up in your company, then these people are far more likely to stay with you.
7) Offer Mentoring
You should assign your new employees with mentors that have worked for the business and been there a long time. This will give them advice, insight, help as they grow their skillset and be able to provide feedback through mentoring sessions in order to reach organizational goals.
8) Seek Feedback
Companies should seek out feedback from their employees on what is working and not. Companies can boost morale by allowing workers to provide insight into how the company operates with a more inclusive corporate culture that people are likely to remain engaged in.
9) Offer Training
To help facilitate and encourage internal mobility, provide employees training to ensure they stay interested, engaged in their work. This is as simple as encouraging them to block off time in their schedules for LinkedIn Learning or meeting with a mentor regularly. If your company has the resources you could set aside personal development budgets so that everyone can identify skills aligned with their interests and needs of both themselves personally and within the business
Conclusion
Employee retention is a crucial way to keep your most valuable assets and minimize the cost of maintaining an employee. A thoughtful plan that has been proven through time will help you retain talented employees for years without costing much in return.
