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9 strategies to increase retention of employees

Jul 14, 2022

Building a team full of dedicated, hardworking employees is no effortless task. Making sure that you can move people through your recruitment process, onboardingprocess, and onboarding process is a lengthy, hard expensive job. Actually, Glassdoor estimates that it costs the average American employer around $4000 plus over a month hire an employee who's new. It's just one aspect of the work that is required to establish an excellent team. The other aspect of controllingthem one of the top employees in an organization that's more difficult to determine and calls for the efforts from multiple divisions within an organisation.

In in the United States experiencing record levels of resignations and a depressed stocks market and growing levels of self-employment, retaining your best employees can be an overwhelming endeavor. Yet, just because it is getting harder does not mean that it's unattainable.

The team of's human operations team to discuss nine strategies organizations can use to increase retention of employees, and to build active and lasting relationship with the best talent.

In this article

What exactly is retention of employees?

For many businesses, the issue of the rate of turnover has become an epidemic and the "quit rate" being at a 20-year high at 2021. And while many employees go into exciting new jobs after leaving, businesses that lose them are forced to spend a lot of cost both time and money searching for successors.

The cost of employee turnover that is so large It's no wonder that employers are now focusing their efforts in retention. This is working together to retain their employees' talent. Retention strategies for employees (which we'll dive into in the coming section!) can include everything from the increase in compensation or reworking the process for onboarding.

To measure how effective the efforts you make to retain employees are, you can track the retention rate of your employees (which is the amount of employees who stay with your company over a specified duration of duration (usually about 1 year).

What's the most effective way to measure the retention rate of employees?

Retention rate of employees = (Number of employees employed throughout the measuring time period / the number of employees employed in the first month of the measurement time) * 100

Once you calculate the rate of retention for your employees , it is important compare it with the standard retention rate in your particular industry, such as hospitality or tech. As per the Bureau of Labor Statistics, the average retention rate in 2021 was 42.7 percent, but this number could be dramatically different based on the specific industry you zoom in on.

Whatever your field of work it is believed that aiming at the highest level is the aim of the game when it comes to retention rates of employees, while having enough flexibility to allow to fluctuation in the global scene.

"Most businesses, in order be seen as active, are trying to get beyond 90" declares Candace Williams, Head of Diversity, Equity, and Inclusion at . "At our present level at the moment, we're a little less than the 90 percent mark. But, this changes and fluctuates, and depends upon the department or procedure we're discussing. Today's economy, and in the context of COVID organizations must recognize that information is constantly shifting."

Knowing the present context can help you understand fluctuating turnover rates however it can assist in deciding on which areas to target the effort of retention. In 2022, there's numerous factors to consider.

The (increased) issue of retaining talent in 2022.

If retention rates of your employees fell last year, for the first time, be aware that you're not the only one. Based on the results of an WTW study of an ad hoc group of companies that experienced problems with retention of their employees, the number increased fourfold in 2021. If you haven't fixed leaks within your leaky vessel yet, then this is the perfect opportunity to make the necessary repairs because Gartner states that retention of employees will continue to be a problem for a long time after 2022.

"New employee expectations, and the potential for hybrid agreements will continue to fuel the rising rates of attrition" Piers Hudson, senior director at Gartner HR, told Gartner. "An organization with an employee turnover rate at 20 percent prior to the outbreak is likely to face an employee turnover rate of as much at 24 percent by 2022 and in the near coming years. As an example, a company with a staff of 25,000 employees will need be prepared for an additional 1,000 departures by themselves."

A variety of factors are currently determining "The Great Resignation," as it is now being referred to in the press as the current churn of employees. The COVID-19 pandemic that hit in the month of March, 2020 had certainly one of the factors: with children being at home all day and caring requirements growing dramatically, COVID-19 caused numerous women to leave working. The laid-off workers also took on self-employment or freelance work with a flurry of enthusiasm at the time of the outbreak of the illness. When offices reopened in the spring, lots of them have returned back to work, having accrued working hours working remotely -- quit instead of returning to full-time jobs.

The initial rise in turnover attributable to these causes also prompted numerous companies to increase their pay, increase benefits prioritizing equity, diversity and diversity as well as inclusion (DEI) in order to attract new employees. Increased competition between companies resulted in the emergence of more jobs as workers sought better working conditions. As with a rising tide these shifts have forced all enterprises to increase their investment in retention of employees.

"I prefer to turn "'the Great Resignation' in to the Great Retention'" says Williams. "Because the people leaving are due to a variety of reasons. What are you planning to do to prevent the people from going away?"

Based on that new perspective We'll explore methods to keep your top talent.

9 strategies to improve employee retention

Review your approach to compensation

Employees join businesses is for more reasons than being paid. However, this is among of the most crucial motivations. Not surprisingly, more than 50% of workers think that a pay increment would suffice to convince employees to make a decision to switch work.

To keep compensation from being one of the reasons people leave your business, experts advise employing the concept of salary benchmarking that compares the wages of your employees to similar companies within the same field. If your salary is below the median, different companies' offerings are attractive to your employees. If you can, raise compensation above market rate and ensure you're addressing salary concerns by being proactive when you talk to employees. (Don't overlook that compensation encompasses equity-based and other benefits.)

"I have observed a variety of companies that have a bad compensation policy, which is lower than the market and is completely absurd," says David Connors The Swarm's CEO. The Swarm.  The Swarm . "Treat your employees properly. This is an excellent choice as the number of companies that succeed in keeping the purse strings really tight is extremely, very small as compared to the companies that have been really generous by investing in their staff."
 
  The possibility of increasing wage could be scary when the market is down. Keep in mind that the process of it comes with costly costs. Based on Gallup estimates, the expense of replacing employees is usually between 50-300 percentage of their annual earnings. This is just the quantifiable cost: the constant loss of workers can lead to lower morale within the organization, cause delays to initiatives, and cause a break in the relationship with customers.

Concentrate on equity and diversity

In a 2021 study, Momentive found that an individual's level of satisfaction with work directly relates to the degree to which they believe their company prioritizes diversification and diversity.

Some people find that this connection shouldn't be a surprise.

"People often view diversity by thinking, "Okay, let's check this box. We've had this amount of BIPOC employees, we've additionally hired this many Asian Pacific folks, we've employed this amount of Latinas,' and so on and on. The number is much higher." Williams declares. Williams. "People must feel secure and at ease in their workplace They need to have an ability to make connections with those who look like them."

As per Williams that the integration of DEI within your business means ensuring people of any background feel welcome secure at ease, safe, and comfortable within your company, all the way from the moment they are at your Careers page to the moment they leave for their final interview.
 
  It's an excellent idea to ask:

  • Do there exist diverse communities that members can join to your job?
  • How do we show up for our employees when they've been through the trauma of a family or community or other tragic
  • How can we create an environment for business where everyone can voice the issues they have?
  • Does our benefit plan meet the needs of all our employees' particular needs?
  • How can we make sure that employees working all-hours don't be deprived of opportunities to earn a living?

Benefit from flexibility in your work schedule

Since COVID-19 erupted and businesses made the move to completely remote working, was made more manageable for the majority of. People were able to care for their parents and children, but were also able to focus on their physical and mental health. Because offices are now operational again more safely Many employees do not wish to loose the freedom they enjoy.

"We received a lot of feedback from our staff that said flexibility was the thing they were most concerned about," says Crystal Boysen the Chief People Officer for . "So in the last few years, we've been significantly more thoughtful about the way we conduct our work."

"If the company is able to accommodate multiple different work modes, it's important to be aware of each work mode 'persona' and how we can ensure a pleasant working experience for everyone." says Alissa Conway, Vice President for Innovative and Employee Experiences at .

Conway is also adamant about the significance of communicating the organization's purpose and value proposition, as well as making sure it matches the current workplace experience of employees.

"Senior management will be able answer the question: "What is it that makes our company a great place to work and what's our worth offering to potential employees? Are they in alignment with the experience internal employees are experiencing? If not, how do improve the experience of employees so that we can achieve the kind of experience we'd like to see it become?"

Improve your onboarding and orientation procedures

To improve retention, review your current orientation and onboarding methods from the point of view of your new hires.
 
  You can ask yourself:

  • Are they receiving the necessary information they require?
  • Are they able to get acquainted with their team members that they'll be working with?
  • Do they have access to all the information and tools they'll require, as well as instruction on how to utilize the entire array?
  • Do they have a connection to a person they could seek help from?
  • How satisfied and well supported an employee who is new do you feel?

It can help to survey the new hires as they begin the onboarding process and orientation is over for you to assess your performance as well as where your gaps are.

Train people managers

Managers are typically the first person they seek for guidance, and feedback, as well as advice from. However, most managers aren't specifically trained about how to manage employees.

"A most of the time employees quit organizations because of their bosses and they are not leaving due to their work," says Williams. "If employees do not feel confident talking about their issues or issues to their managers, or supervisors, then they're losing their talent. They believe, "Okay Let me join an employer where I am confident that my voice will not be restricted or that I won't be afraid.'"

A successful manager should create the security and happiness of their team by creating a positive and safe setting for the team. help them achieve their personal growth objectives as well as encourage them to speak up and give them awards, and help them to improve their capabilities. Making managers aware of how they can improve workplace environments - both at work and via remote - is a crucial component of an organization's continuous efforts to boost retention for employees.

Establish a system of continual learning

According to Deloitte organizations that have an enlightened culture are more likely to experience employee engagement and retention rates which are between 30 to 50 percent higher than organizations who do not concentrate on the growth of their workforce and their learning.

"Engagement is the most important element of retention" Conway says. Conway. "The the more active individuals are within their teams and the better their output is the more productive they are as well as the more loyal to the company."

There are plenty of methods that will help you build an environment of learning, for example:

  • A specific amount of money (and sufficient time) to fund conferences, books as well as other forms of professional growth
  • Insisting on a formal mentorship program (for assistance, think about using an online platform such as 10 Thousand Coffees)
  • Coaching employees for their career via an internal or external system such as Ezra Coaching

Give employees actionable feedback

A key part of what you must do in establishing a culture of continuing learning, is to make sure that your employees receive the kind of feedback that energizes employees, inspires them and helps them with their development.

"It's about respect and ensuring the direction and guidance is given," says Dan Brooks the VP of Creative and Brand at . "There are ways to express feedback."

Instead of being specific, Brooks suggests asking questions that spark interest in members of the team which makes your feedback more collaborative. Include a context of why you're suggesting particular strategies to ensure your feedback remains concentrated on specific goals (rather instead of general ideas).

Inform the entire company

It's not uncommon for siloes to arise within businesses especially when they work in a remote or hybrid setting. Siloes aren't necessarily bad, but they could have an adverse impact on morale of employees because being separated from the larger team can cause employees to feel isolated and demotivated from the significance of their job.

It was evident to the company's own teams as we went remote in the first week of COVID-19 as people were further away physically, it was clear that there was an increased necessity for a company-wide communications.

Remind your employees to be acknowledged -- using an exaggerated voice

In a survey conducted in 2019 conducted by Achievers, employees state a lack of recognition as one of three of the main reasons why they are looking for a job. Additionally, over 80 percent of employees say that they've had more recognition at their workplace. This is an large amount of people feeling underappreciated.

It's good that it's simple to begin acknowledging colleagues' contributions at work . You only need to establish ways for it to take place.

  • Create a "kudos" in Slack in which individuals can recognize coworkers' efforts or shout exclamate them.
  • At town halls or updates, let people from the team that are involved in particular initiatives talk about the work they have done.

Continue to develop your talent until 2022 and beyond.

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