There are a lot of reasons a company needs to improve employee retention. It has become a big deal because when your employees leave your company, it can cost you a lot of money and negatively impact your business. Increased employee retention rate is one of the factors that let you stay competitive in the marketplace. This also gives you a greater chance of reducing employee turnover. Thus, this leads to better performance, increased employee productivity, and reduced recruitment and training costs. If you have a high employee turnover rate, you have to prioritize coming up with a long-term solution through a talent retention strategy. With that said, this article will teach you the steps how to increase employee retention rate as an employer.
What does employee retention mean?
Employee retention is the ability of the employers or company to keep employees in the organization. It is the ability of the organization to reduce attrition and keep a low employee turnover rate. This measures and gets a sense of how well the organization is doing when it comes to retaining its employees. If a company is able to retain its workers, it usually means that it is doing well and most likely providing them with a fair wage and job security.
Strategies on How to Increase Employee Retention Rate
Below are the strategies to keep your employees happy, productive, and winning to reduce retention risks in your company.
Encourage and Inspire Employees to Have a Healthy Life Outside Work
Employees always perform better at work when they are well-rested. When you also give them the freedom to live life as long as they are able to meet the quality outputs you want without them being overworked, they will have more reasons to stick around. Employees would always love it when their work includes a full weekend of time off to rest and unwind.
Engage With Them
Work undeniably becomes a part of your employees’ lives even if they say that it’s just 8 hours of their everyday life. Sooner or later, the chances of your newcomers leaving you due to poor employee engagement also become high. When your talents see your company full of lively, passionate, and smart leaders and team players, they will be more encouraged to unleash their potential to also excel in your company. When you fuel their passions at work, more likely, they won’t mind taking the extra steps to hone their crafts.
To engage with them, set a team meeting regularly, and conduct fun team activities. You can also outsource your HR management offshore where you will get a competent and experienced team leader in the most practical way.
Make Your Employees Feel Valued at Work
Giving your employees positive feedback goes a long way. It motivates your talents to be more proactive, give high-quality outputs, and stay consistently productive. At the same time, you will also need to give constructive feedback from time to time when really needed. Letting your employees know in private which area they can work on better works well for the business. This is as long as you also don’t forget to appreciate their efforts more. There should be more words of affirmation than the criticisms just so your talents don’t get easily discouraged.
Offer a Competitive Compensation
No matter how engaging the company seems to be, A-players will sooner or later realize that their time and efforts are not entirely valued due to poor compensation and low salary package. There are many small to medium corporations out there that overwork their employees with 6 working days a week of heavy tasks but also offer less paid leaves than what they deserve. Plus, they also offer a low salary package. Those who stay are either only settling or already looking for better opportunities outside. These lead to a low retention rate.
A competitive salary package, compensation, and company benefits will always be a top factor in a winning employee retention rate.
Stick to a System as Much as Possible
Sudden unnecessary changes in the workplace would show a lack of stability in your systems. This can be stressful for your employees. Although being adaptable is one of the most crucial skills that an employee should possess, entrepreneurs can still attest that many changes in the workplace will trigger negativity in the workforce. This can corrupt their minds into thinking that their job security is at stake.
Show Support by Leveraging On the Right Tools
You can help your employees complete their tasks on time with the proper training as well as the digital tools they can leverage on. The tools you provide your team will contribute a lot to their productivity, happiness, and effectiveness in the workplace.
Adapt to Digital Transformation
Digital transformation is the adoption of the latest technologies. To others, it might also mean modernizing legacy systems. You can use digital transformation as a framework to help you focus on your company’s goals. Every department in your organization will benefit from this transformation. Its goal is to make the jobs easier while staying productive.
Adapting to digital transformation for your HR team, for example, will allow them to track your employees’ attendance and productivity through updated software. Additionally, this will open doors to a more flexible workforce that is highly attractive to A-players. Your sales and marketing team can also feel more accomplished with CRM software. A Customer Relationship Management digital tool will bring them more leads and have them reap exciting rewards later on.
In retrospect, applying this new system is about making an organization highly efficient and able to compete in an economy that is dependent on technology. As the world is becoming increasingly digital, organizations that aren’t able to compete in this field will slowly lose their competitive edge.
Conclusion
There are many reasons why you should be worried about employee retention rates. Lower employee retention rates lead to high turnover rates, which cost companies millions each year. Recruiting, onboarding, and training new employees will cost your company more money. The cost of losing employees includes the time spent looking for new employees and the money spent on advertising and other forms of outreach. These costs will significantly add up over time. Your employees play a crucial role when it comes to your business productivity and success. Thus, getting a good grasp on how to increase employee retention rate is a step closer to being on top of your competitors.
