Twelve Great Employee Retention Techniques

Estimated read time 15 min read

Businesses are under tremendous pressure due to the labor shortage. In 2022 the participation rate was down 1% compared to before the pandemic. 2.9 million workers were missing. About 4,000,000 Americans leave their jobs every month in search of a better job. A third of employees leave their jobs before the halfway mark!

This type of turnover can be very expensive. Some estimates say that replacing an employee can cost an company twice the salary . The cost of replacing an employee can vary depending on the industry, but some employers may find that adding in other factors like morale or culture will increase it.

Imagine the employees that you have who possess mission-critical skills on which your business depends, or employees who have reinvented themselves in their jobs. Or employees that are so important that you would be terrified if they left. How can you win the battle of employee retention? How can you retain your employees when the job market is so competitive? Try these 12 employee retention strategies to keep your employees on board.

Why is it important to create a strategy for employee retention?

A retention strategy for employees is not only important to save money, but also helps your company maintain a positive culture and boost morale. A lower turnover can help build a stronger team. The more time employees spend together, the better their ability to work as a group is. This can increase morale and productivity.

A better employee retention rate is also beneficial to revenue. The constant turnover of staff can be frustrating to some customers. You want friendly staff that can assist customers in getting what they need and perhaps a little more. You won’t get the benefit of a seasoned employee that impresses your customers and makes them return if you are always hiring new people.

You’ll also want to have a good employee retention strategy, as it will improve employee engagement. Employees who are engaged are happier and more productive. They remain on the job longer. They are your best performers. Your team won’t be able to engage if they are constantly changing jobs. Your business will benefit from boosting your retention efforts in many ways.

12 Best Employee Retention Ideass

These employee retention tips will help you retain your employees and reap the rewards of motivated, engaged staff.

1. Compensation and salary must be competitive

In a recent Glassdoor Survey, recruiters, HR representatives, and hiring managers were asked to rate the reasons for employees’ resignations. The majority of them cited salary as their top reason. The next most common reason for leaving was salary, followed by better benefits and career advancement.

Is money always the main concern?

A collection of recent employee retention surveys shows that only 24 % of “Generation X’s” employees cite financial stability as a reason to remain in a position. 56% say they are kept in their jobs by healthcare and insurance. It is important to have benefits that are beneficial. Money is important. You must offer comparable benefits to your competitors in your region and industry.

You’d be forgiven for thinking that, after seeing these statistics, the best way to retain employees would be to give them more money and benefits. These are certainly two important issues for employers to consider. For some employees, this would be an effective employee retention strategy.

It is not a good idea to make this your only option. This can be a costly mistake for any business. Salary and benefits are important and should be considered–especially if you are paying below industry standards–but there are employee retention strategies other than costly raises and benefits.

2. Be transparent and hire the right person from the beginning

Glassdoor discovered that 35 percent of those who hire new employees do so in anticipation that more will leave within the next year. The fact that hiring managers are already imagining more than one-third their new hires leaving is a bit depressing.

Don’t be shocked if a quitter you hired quits. Don’t be shocked if you hire someone that’s not a good fit for your company.

Be honest with the new employee about your expectations. Do not sugarcoat or hide aspects of your job to get someone to bite. Transparency will help you find the best employees.

3. Reduce employee stress

It’s not realistic to expect employees to act like robots. There’s pain when an employee’s balance between work and life is off. When your employee feels that she is spending most of her time working and not living, then the job becomes the villain.

Take a look at the struggles airlines are facing with a shortage of pilots. The problem is that there are not enough pilots available to fill all the planes. A looming wave of retirements by experienced pilots will only make it worse.

The airlines have worked on several strategies to retain employees and possible solutions. One of them is fairly obvious: Offer better salaries than are available elsewhere in the aviation industry and tempt pilots from corporate aviation or other airlines. The Air Force then increases salaries for pilots. This has a trickle-down effect, which will have the most negative impact on companies that are unable to compete.

What can a small company or business do when they’re in an industry or situation where there is a lot of competition for good employees, but cannot afford to pay them a competitive wage?

Find the pain points

Find out what frustrates employees in your field by using employee surveys, getting direct feedback or watching industry trends.

Commercial pilots are often on a tight schedule, and they have to travel to another city to be “based”. They spend their time in hotels, surrounded by strangers who may not be the best company, and away from family. Some people find this a source of frustration.

Relieve the pain

Consider pain the primary thing that needs to be relieved.

In a sense, money can alleviate pain. The paycheck that follows will make life easier in other areas. There are also other ways that employees can reduce pain, which they may find just as valuable.

Corporate aviation, using our aviation example as an example, can offer family-friendly schedules despite not being able to match commercial salaries. They’re rearranging their flight schedules to allow pilots to be at home every night or have shorter road schedules.

In contrast, airlines can be attractive to corporate pilots that are tired of having to do everything (clean, schedule greet, stow bags, plan, etc.) on every flight. For most airlines, pilots only have to show up and fly. Maybe a corporate flight division could hire staff to do a lot of the unskilled work (cleaning etc.). To retain and attract more pilots, it is important to address all perceived problems.

Do not let pain spread elsewhere

It is easy to take good workers for granted. Watch out for employees who are not complaining but feel frustrated or exhausted by the work they have to do.

Some employees will not even be aware that they are working too hard because of their nature or personality. You may not expect this, but some employees have a strong work ethic. They are the employees who think of their income in accounting terms and rarely take time off. paid time off is helpful for these employees. Giving a random day off can help.

Unintentionally, perhaps organizational changes created pain. You may have solved a problem, but created a new one inadvertently. Communicate with your employees and be on the lookout for areas where there has been grumbling. These are the pain points.

4. Leaders, not bosses

Everyone wants to be a boss, but few people want to lead. But remember that people will follow leaders while abandoning bosses. Leaders are rare, while bosses are plentiful.

Want to retain your employees?

Knowing the five qualities of effective leaders is important, as it will play a direct role in employee engagement and our next employee retention plan.

  • A clear direction for the future. Good leadership lets employees know the company’s goals. Employees are left wondering whether there is good or bad news coming.
  • Able handle challenges. Leaders are able to deal with the challenges they face, instead of putting the burden on their employees.
  • A genuine desire to provide high-quality products and services. Good leaders strive to deliver the best possible experiences and products for both employees and customers. The bosses are scrambling just to meet minimum standards.
  • Leaders who value their employees as the most valuable asset. The bosses are focused on the numbers.
  • Creates confidence. Good leadership makes employees confident in their abilities to guide them to the right place. Employees tend to be passive-aggressive in their frustration with bosses when they question decisions that negatively affect them.

Which Management Style is Right for You?

What are the qualities of a leader?

Make yourself available to your employees

It’s not sufficient for bosses to merely invite feedback and criticism. Even with an open door policy, it’s common for people to feel that they cannot express themselves without fear of being embarrassed or retaliated against.

It is important to actively build a relationship with your employees. It’s not necessary to become best buddies, but being friendly and engaging with your employees can pay off.

Be structured and steady

Use a app for work scheduling in order to save time and streamline the process. Stick to a well-written handbook, and treat all employees and situations fairly.

Chaos is anything less. Employees won’t stay around for drama and chaos.

5. Watch out for your managers

Managers, not companies, are the ones who leave.

Have you ever asked people why they left their jobs?

It’s likely that the first thing you will hear is a complaint about the manager or boss. Not the products, customers or coworkers. Watch your managers.

A bad manager can create a mess for everyone.

While you are taking the time to teach your manager about the technical aspects of his or her position, it is in your best interests to also include “soft skills”. It’s important to teach your managers about how to motivate and encourage different people. You can also cover personality traits, conflict resolution, stress management and crisis management.

6. Employee engagement is possible

A Gallup survey found that only 32% are actively engaged. This means that their workplace needs are not being met. The number has increased by 1% since 2021.

This should be a red flag for any employer.

However, your first response shouldn’t be to blame employees for being distracted as the reason for disengagement. Distraction can be a sign of motivation issues. Employers need to know what motivates employees to be fully engaged in their work and what causes them to simply punch the clock to get through the day until something better arrives.

What makes people want to be involved, to care and to stay with the team?

Provide valuable learning opportunities

Employees who are highly motivated to learn also show greater engagement at work.

Remember that training opportunities are not the same as the on-the job training. Your employees should not just be improving their current skills, but rather grow and expand. You’re missing out on the best employee retention strategies if your training centers are solely focused on improving performance in an existing role. Consider:

  • Programs of cross-training so that employees are equipped with a wide range of skills, and not only a limited set for their job.
  • Mentorship programs which encourage mentees become mentors
  • Create a ladder of leadership so that employees can see what is required to advance.

The best employees, the ones who you want to retain and are committed to your business, want to progress.

Advancement possible

People who are motivated by a sense of progress, whether it is promotion or professional development, will generally work harder.

It makes sense, right?

What will you do if you are going to stay in the same position for a long time, and not be able to advance? If you are motivated by success, why wouldn’t start looking for another job?

Provide employees with opportunities to achieve concrete success

According to entrepreneur people want to feel like they are succeeding, and that their skills and abilities are being utilized in a manner that is beneficial to the business.

You can’t just give vague feedback (even if it is well-intentioned). Your employees want to see what they have achieved. They want a tangible object on which they can take pride. They must see the results for themselves.

7. Be a brand that they will be proud to use

It is an age where activism is the norm. The upcoming generation wants to make every aspect of life a part of a positive solution, not a negative one. Make your business a positive one, and be known for supporting:

  • Charity and helpful organizations
  • Local community
  • Environmental, educational, and equality issues are all important.
  • Building a team in a work environment that is family-like

Find out how your business can be adapted to such a reputation. It may be necessary to change your reputation. You might be an auto shop known for its eco-friendly waste policies or your donation to environmental causes. You may run a restaurant which regularly donates food to a local soup-kitchen.

Positively branded businesses will be attractive to employees who care deeply about their impact on the world.

Although every business must evaluate their wage and benefit levels in relation to industry standards, these direct dollar concerns are not the only way to keep your employees.

Remember that your employees don’t work for the paycheck alone. It’s important to them where they work and how they work. It’s better to avoid a wage war that will only make your bottom line worse when you are competing in a tight market.

8. Onboarding and orientation with ease

According to , 37% of hiring manager , new hires are more likely to stay if they’re better informed about the hiring process. Poor onboarding can create a negative environment for new employees. A great experience can help build employee engagement, and keep new hires longer on the team by making them feel valued.

9. Feedback on performance is continuous

It is only common sense to provide your employees with the tools they need to succeed in their jobs. It would be unreasonable to expect a nurse or cashier to work without their stethoscopes. One of these tools is feedback on performance. You can’t keep your employees motivated if they don’t understand how they are doing at work. Give your employees feedback regularly so that they know when to expect it.

10. Recognising and rewarding systems

can increase retention and recruitment by up to 68% by implementing an system of employee recognition. Even if your company can’t invest a lot of money in a rewards program, recognizing employees can be a great way to show them that you appreciate their efforts. The employees want to know that they are valued and their contribution is seen. You can recognize and reward your employees in small ways. A public thank-you, a day of rest, or even a gift card will increase their engagement.

11. Teamwork is important

Employee engagement is key to keeping employees on the payroll. Employees who are engaged work together. By focusing on teamwork, employees will feel part of a group that is working towards a common goal. This sense of belonging will make your employees feel valued and more committed.

12. Employee Milestones are acknowledged

In the same way that rewards and recognition can motivate employees, recognizing their milestones makes them feel valued not only as workers, but also as people. Celebrate life milestones like birthdays or work anniversaries to encourage your employees to reflect on their growth over the last year. Showing your employees that you value them as individuals is an intangible benefit that doesn’t cost much money but pays big dividends for retention.

There are several ways to develop a retention strategy for employees

You’ve seen that there are many ways to create a strategy for employee retention with different levels of investment. You can make it easier for your employees to manage their own schedules by giving them access.

Select the right software to manage employee scheduling. This will give your employees access to their schedules at all times, an easy clock-in and out system, and a communication platform built in that can help them get more done.

Apps that allow your team to swap shifts, request leave, and do more are more engaging.

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