Why does employee retention matter?
Build & deliver the ultimate employee experience
Support employees during the cost-of-living crisis
Boost your chances of retaining talent with Sodexo Engage
EMPLOYEE RETENTION STRATEGIES TO HELP YOU KEEP YOUR TALENT AND SAVE MONEY
“When you use a recruitment agency to find new talent, you can expect to pay between £10,000 and £12,000 in fees each time. Add in the hidden expenses associated with people's time to support onboarding, equipment and training, and that cost could climb to £20-£30,000 every time you bring someone new into your business.” Tom Nash, HR Business Partner, Sodexo Engage
Why does employee retention matter?
One of Sodexo Engage’s HR Business Partners, Tom Nash, gives a clear understanding of one of the reasons employee retention matters: talent acquisition is expensive!
Expense aside, other benefits come with having long-serving employees. Here are a few:
- They know the business’s objectives and practises inside and out, making them more productive
- They’re sources of knowledge, making them great mentors
- They can support with onboarding and training
- They’re an advert for your business
- It shows that you’re offering something they don’t want to give up
defining Where You Are
When we talk about employee retention, we have to keep changing generational expectations at the back of our minds. Especially when research suggests that Generation Z envisage staying with a business for just two years.
Earning the loyalty of the ‘workforce of tomorrow’ is essential so that they can see a future with your business.
If your employee retention rates are a cause for concern today, it’s time to take a step back and review what’s happening.
Here are some steps to follow to get to the cause of the problem:
- Is there a pattern?
- Gender, age, or ethnicity?
- Do you hold exit interviews?
- If so, is there a common theme or reason given for leaving?
- Are you running regular employee satisfaction surveys?
- What is the feedback, and are you acting on it?
- Are you offering flexibility?
- Are there career development opportunities?
- Are your employee benefits competitive?
- Do you recognise and reward achievements?
The list could go on!
There are various factors that will impact your poor employee retention rates, and you need to identify them. From there, you can determine what steps you can take to turn things around.
Your People Hold The Answers
All the suggestions listed above link back to your people. They hold the answers. They can tell you what works for them and what’s causing contention. However, to get accurate feedback, your people need to be confident that they can talk openly and honestly.
This is where good managers come in. Ensure they’re effective communicators that have the trust of their teams. Alternatively, you can collect employee feedback anonymously.
It's also essential that when you speak with your workforce, you find out who they are as individuals and what they desire from their employee experience.
There will be no one answer, but it’s a step you need to take to understand what your people want from your business and how you can deliver the experience that will help to retain them.
Build & Deliver the Ultimate Employee Experience
Would you work if you didn’t need the money?
An online search suggests that people would work - in some capacity - even if they didn’t need the income. Much of this comes down to what we cover in our article on Maslow, Herzberg and Pink's Motivational Theories in the Workplace, where we discuss the other needs that we fulfil by being at work.
Support Employees During the Cost-of-Living Crisis
From Maslow's research, it’s clear there’s more to being at work than receiving a salary, although for most of your employees, being at work and earning a wage isn’t a choice – it’s a necessity. As part of your research, you should assess what financial support could positively impact your people's financial wellbeing.
We’re in a cost-of-living crisis, and there are ways you can help:
- Provide financial education to improve money management
- Add an employee benefits platform to your range of perks, giving access to a host of savings on everyday essentials
- Embed a salary sacrifice scheme into your business that could help employees consolidate loans
- Empower employees to get more for their money by putting a prepaid cashback card in their pocket. They could earn up to 15% cashback at participating retailers!
Recognise & Reward
In the same article, Herzberg shares his theories on motivation, and recognition is right at the top. If your employees feel they’re not being rewarded for their achievements, they’ll stop performing at the desired level. Rewarding employees also boosts their esteem, which is the second most important element in Maslow’s hierarchy of needs.
If you aren't fulfilling this need, your people may seek an employer who will.
Read more about Reward Power here, when we reflect on how businesses use their reward and recognition strategies to become employers of choice.
Learning & Development
Herzberg's studies also prove that achievement and advancement are motivation boosters. His psychological research is backed up by recent surveys, showing that companies that spent above the national average of £300 per employee on training and development were twice as likely to report that their employees were satisfied.
Take a look at this CIPD Development Benchmarking Fact Sheet for information on calculating the costs of employee training opportunities so that you can build them into your budget.
Boost Your Chances of Retaining Talent with Sodexo Engage
During this article, we’ve outlined why employee retention matters, why you may be having issues, and the steps you can take to make a positive change. However, this change starts with you by assessing where you are and using data to boost your employee experience.
The most successful strategies are data-led, and it pays to take the time to look deeply into your organisation and the experience you’re offering your people.
Once you know where you are, we can help you get where you want to be. With over 60 years of experience, Sodexo Engage can support you in implementing employee benefits and rewards that will boost engagement and retention.
Arrange a call with our team today.