Having a Retention strategy in place can help you retain talent
But why does that matter and what can you include in your strategy?
People are a company's biggest asset, but with 40% of people saying they’ll switch jobs this year (Microsoft Trend Index) and 1 in 4 employees ready to quit according to the Morning Consult it’s a worrying time for many in HR.
According to Sparkbay, 47% of HR professionals said retention was the top talent management they faced. This is where a HR retention strategy comes in as it can help you retain your employees and reduce the costs associated with employee turnover.
Here’s all you need to know about employee retention and employee retention strategies...
What is employee retention and why is it important:
Employee retention is essentially your ability to keep your employees. It also includes what you do to hold onto your teams and ensure loyalty to your business. Having a HR retention strategy is key to reducing employee turnover, which can cause problems for your business.
Why is employee turnover a problem?
Employee turnover can cause issues for your business including:
- Losing top talent and knowledge
- Extra responsibility put on your remaining team members which could stretch them thin and cause stress
- Potential domino effect and push other employees to think about leaving
- A decrease in employee morale and engagement
- Lowered productivity
- Cost to your business, depending on the role recruitment can cost 2.5 times an employee’s salary depending on the role (CIO)
Why are employees looking to leave:
There are many things that cause your employees to leave, and not all of them you can control, like your teams relocating or wanting to experience a new industry. Here are just a few reasons your employees might change jobs that you could address:
- Better compensation and benefits
- Improved work life balance
- Feeling less connected to the company since the pandemic
- Being overworked or unsupported
- Lack of recognition
- Unhappiness with management
- Feeling stuck - nearly 4 in 10 professionals feel that their career has stalled since the start of the pandemic (Robert Half). We can all relate to this at some point in our careers, but your company culture and retention strategies can really make a difference!
What are some things you can add to your HR Retention Strategy?
If you’re worried about employee turnover, there are some things you can do to address it including:
Ensuring your salary is competitive: according to Glassdoor nearly 45% say the top reasons employees change jobs. Although you might not be in the position to offer pay rises right now, there are things you can do including supporting their financial wellbeing with benefits.
Offering mentorship programs: having a mentor can give your employee guidance, act as a sounding board for your employees and help with their career development. This can improve your overall employee retention and job satisfaction.
Perks and benefits: from flexible work schedules to employee discounts or generous annual leave policies, there are many things that go beyond salary that can make you more attractive to your talent.
Wellbeing offerings: keeping your employees mentally, physically and financially well is good for business and for employee retention as 90% of employees are more likely to stay with an organisation that is empathetic to their needs (Edu Me). These could be offering an Employee Assistance Programme, a discount on Gym Memberships or a Cashback Card.
Training and development: For your employees who are feeling stuck, then professional development can help. Plus according to LinkedIn 94% of employees said they would stay at a company longer if they invested in their professional development. Here are some career development practices that can help with employee retention.
Recognition and rewards: We all want to feel appreciated and your gratitude can make a big impact. According to one Gallup poll, 65% of people feel unappreciated at their jobs, so saying thank you can go a long way to help. You could use rewards like eVouchers or a recognition platform.
Whether you are experiencing high turnover now, or looking to prevent it in the future, it’s always worth reviewing the strategies you have in place!
How can we help:
Whether you want to provide wellbeing benefits, help your employee’s salaries stretch further or implement a reward and recognition platform, we can help! Get in touch with our experts today!