How To Boost Employee Retention
January 20, 2021
As employers, one of the most impactful KPIs is employee retention and it’s of utmost importance to continuously keep a pulse on retention rate. One of our primary responsibilities as leadership is to understand what makes our team happily engaged and motivated in their roles and at the company, and why someone chooses to leave the company and/or has expressed interest in looking for new opportunities.
Strong employee retention provides for higher productivity, less disruption, a more positive team dynamic, which collectively equates to much higher ROI. Retention speaks volumes about our company culture and is a testament to the quality and strength of leadership.
It’s inevitable across every company that team members will come and go. However, the more competitive the talent market becomes, the harder it will impact our efforts to hire a suitable replacement. Given this reality, it’s much more beneficial to be proactive, and have a strong pulse on your organization. We exponentially increase the probability of having a much greater ROI, when our leaders are playing offense vs defense when it comes to retention strategies and tactics. So much so that in 2019, a Work Institute study found that almost 3/4th of all employees who voluntarily leave a position could’ve been retained.
What are some of the factors leadership can impact to continuously increase retention across the organization?
Competitive Pay & Benefits
Always know what your competitors are paying, specifically base pay, commissions (if applicable), benefits, vacation, and bonus or equity payouts;
Don’t take compensation for granted. A failure to offer raises, promotions, or annual cost of living adjustments in line with comparable companies in our market, increases the risk of losing strong caliber talent.
It’s much more cost-effective to give a raise, then start from scratch in the hiring/training process.
It’s in our best interest to be flexible and fair with compensation based on merit and experience. Holding a hard line just because it’s policy, will damage retention over time.
Show Appreciation Often
Regardless of who you are, it’s nice to feel appreciated by your peers.
Your team is accomplishing a lot every day, and they deserve appreciation and/or accolades for their efforts.
Giving proper recognition may be the difference between someone staying longer vs leaving.
Track team progress and celebrate milestones.
Hold weekly meetings to give props to outstanding employees.
Give out team awards and celebrate birthdays and work anniversaries on social media or internal channels.
When joining a company, the experience a new team member endures is vital to whether they stick it out and give it their all vs the later.
It’s our responsibility to ensure onboarding is as smooth and comfortable as possible.
Have a plan in place and go above and beyond to make it enjoyable and stress-free
Automate tasks if possible, since no one likes walking into their first day on the job only to fill out a mountain of paperwork.
Do something special for each new hire, such as giving a small gift or company swag on their first day.
Make sure they have all the necessary tools for communication and make time to answer any questions during the first few weeks.
Assigning a mentor or fellow team member to help ease the transition works really well
Align expectations on both sides from Day 1
Retention Efforts as a Policy
Retaining employees is more than just improving ROI. It does wonders for your company culture and sets up the organization for success internally and strongly benefits talent acquisition efforts over the long term. Continuously refining and improving retention practices and efforts should be policy, not a nice to have.
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