Employee retention can be a critical element that contributes to the success of an organisation. Businesses that look after their employees and retain their good performers often have better engagement, higher productivity and profitability. Whilst some employee turnover is considered healthy, high turnover can be very expensive, costing a business time, effort and money.
So, what can a business do to encourage good employees to stay longer? HR Consultant, Danielle Turner from Preston HR has outlined six strategies to help businesses improve their retention rates.
Effective management and leadership
Having effective managers and leaders is a critical element that contributes to retention. Most people have heard it before – people don’t leave jobs, they leave managers. An effective manager motivates employees, provides useful feedback, manages performance and sets clear direction, goals and expectations. As part of their retention strategy, businesses should consider what they can do to build capabilities of their managers and leaders.
Positive workplace culture
Workplace culture can be an influential tool that greatly contributes to the success of a business. News about workplace culture can impact a brand, talent attraction and retention. Some elements that support a positive workplace culture include; effective workforce engagement and communication, well defined and communicated systems and processes, recognising and rewarding effort, and establishing and building strong teams. An effective way to monitor the condition of your workplace culture is conducting an employee opinion survey to get feedback, so that internal practices can be adjusted if required.
Opportunities for career progression & promotion
Providing opportunities for career progression and promotion within your business can enhance employee motivation and job/career satisfaction. Businesses can create career development plans for employees as part of a regular performance appraisal process. Identifying career paths within a business can help employees recognise the skills and knowledge they need to develop, so that in the future they may be considered for a promotion, transfer, or new position.
Flexible working options
As the world of work is changing, having flexibility at work is becoming increasingly important as employees balance competing priorities in life and at work. Such arrangements usually encompass changes to the hours, pattern or location of work. Businesses that offer flexible working options benefit from increased retention and engagement rates, as many employees consider this to be a key benefit in their employment.
Training & development opportunities
Providing learning and development opportunities contributes to a productive, progressive, innovative and engaged workforce. Training and development opportunities can take place on the job, through peer-based learning or in the classroom. Businesses should consider providing opportunities for employees, that are consistent and supportive of their strategic and operational objectives.
Competitive pay & benefits
In order to retain and attract top talent, it is critical that the remuneration package offered by a business is competitive in the market in which they operate. Businesses may need to benchmark their pay and benefit packages against external market rates, or source market data to ensure what they are offering employees is fair and relative to the industry. This should also be reviewed at regular intervals and adjustments made as necessary.
Where do you start?
Businesses that may be concerned about their turnover and would like to improve their retention rates can start by capturing, analysing and acting upon employee feedback and data. This can be achieved by conducting exit interviews with employees departing the business, undertaking employee opinion surveys, and reviewing information captured during performance appraisals.