How to Improve Employee Retention

Employee Retention Strategies to Retain Top Talent

In today's competitive job market, employee retention is an important part of HR’s responsibilities. 

The cost of replacing an employee is significant. First, there’s the time and resources it takes to find a new hire. It costs an average of six to nine months of an employee’s salary to replace them, according to an affiliate study with the Society for Human Resource Management. Then there’s the lost productivity and disrupted team dynamics. A department is likely to see a productivity drop when it loses a staffer from the start of the recruitment process through fully onboarding that new employee (and finding a new workflow that addresses the needs of this reshaped team). 

This all makes frequent turnover an operational drag — and means boosting retention is a powerful way for an HR department to increase a company’s efficiency. Fortunately, there are plenty of strategies HR professionals can leverage to proactively develop and implement effective retention strategies across all levels of the organization.

Establish an Inclusive Company Culture

An inclusive company culture values diverse backgrounds and experiences and makes everyone feel like they belong. This sense of belonging nurtures a work environment where employees feel comfortable sharing their opinions and ideas. It can be fostered at every juncture of a company’s operations, from where and how you promote job openings to promoting open communication channels and hosting diversity and inclusion training for all team members.

These initiatives can lead to a quantifiable retention boost. After all, a company culture that recognizes, respects, and values employees as they are fosters loyalty that can translate into longevity. And employees without inclusion are already voting with their feet: Nearly a quarter of employees surveyed by Deloitte reported leaving a job because they did not feel included in the company culture, and 72% of workers say they’re willing to leave their current organization for one they believe is more inclusive.

Provide Professional Development Opportunities

Employees value upskilling opportunities that help them to keep up with industry trends and gain new abilities. Professional development also helps to increase confidence and motivation levels, which can lead to increased job satisfaction.

In fact, 61% of employees said that career development opportunities like learning new skills were the most important factor when considering staying at their current employer.

You can help pave the way for your staff's career advancements in many ways. Throughout the year, consider rotating through a mix of these initiatives:

• Mentorship programs for new or junior employees.
• Sponsorships and scholarships to conferences, workshops, and online courses.
• Webinars or seminars related to their roles.
• Monthly in-house training sessions for different departments.
• Industry networking events.
• Certifications or continuing education programs.

Implement a Wellness Program

Wellness programs provide employees with access to resources for both physical and mental wellbeing. Providing these types of resources can help staff members feel cared for by their employers, which can translate into higher employee retention rates.

Consider offering nutrition counseling, exercise classes, and preventive health screenings. To support mental wellness, consider stress management services such as meditation classes or adding mental health days to your sick leave policy.

Allow for Flexible Schedules

Time is our most valuable asset. When so much of it is spent at work, it's important to ensure employees feel like they have a certain degree of control over their time. 

Flexible scheduling can give employees the freedom to balance their work and personal lives, helping to mitigate burnout. It helps show employees that you value their time and are willing to work with them to be productive, happy, and healthy. This, in turn, can encourage employee loyalty and reduce employee turnover rates.

Flexible work options can include:

• Hybrid or remote work arrangements
• Shorter days on specific days of the week
• Alternating schedules for parents
• Compressed workweeks
• Time off in lieu of overtime payments

As a bonus, a flexible workforce is not only more likely to stick around, they’re also more likely to do better work. Workers with flexible scheduling are more likely to be highly engaged with their work than those who don't have options, according to a Gallup study.

Plan Team-Building Exercises

Team-building activities allow employees to have fun together while building trust. This builds group relationships, and employees who are emotionally connected to their company are less likely to leave their job. 

Fun team-building exercises you can deploy as part of your employee retention strategy include: 

• Team Challenges: Design interactive tasks such as building towers with limited materials or brainstorming silly company logo ideas.
• Charitable Work: Volunteer at local charities together to create positive experiences and strengthen community ties.
• Escape Rooms: Engage in problem-solving activities as teams work together to solve puzzles that allow them to find their way out of a “sealed” room.
• Creative Workshops: Host painting, pottery, or cooking classes that get employees interacting in novel ways.
• Trivia Contests: Test your team's knowledge of current events, pop culture, and trivia facts with fun quiz competitions.

Offer Benefits and Perks

Benefits like health insurance or 401(k) plans are important for retaining your best employees. Seventy-eight percent of employees say their employer must have a benefits package, according to a survey conducted by MetLife.

If you don't already, consider offering a robust benefits package that helps reduce financial stress for your employees. This includes:

• Coverage of health insurance plans
• Retirement savings options
• Paid vacation and sick days
• Performance bonuses
• Parental leave policies
• Tuition reimbursement programs

Moreover, offering non-traditional perks such as gym memberships or pet insurance can also positively affect employee morale. A survey by Trinet found a trending increase in the importance of non-traditional perks, such as discounted free catered lunches or bringing in your pet to work.

Start a Recognition Program

Employee recognition programs give employees well-deserved acknowledgment for their hard work and accomplishments. This can increase personal satisfaction and pride in their work. Moreover, implementing an effective recognition program can help organizations mitigate the estimated $322 billion cost of global turnover and lost productivity each year, according to a Gallup Wellbeing & Workplace study. 

Depending on your company's guidelines and budget for this program, you might include a mix of tangible rewards and public acknowledgment. You can recognize employees with compensation such as gift cards, bonuses, or extra paid time off. Or you can announce exciting milestones such as anniversaries or promotions on social media channels or internal emails.

Leverage Exit Interviews

Exit interviews are a great way to gather valuable employee feedback about what can be improved at your organization. After all, there is always a reason somebody chooses to leave their job, and you can’t know what it is if you don’t ask. These conversations can help you uncover potential gaps in your initiatives to increase employee retention, especially if similar reasons come up in multiple discussions. This data can help you make informed decisions about adjusting and improving your hiring process, workplace policies, and overall culture.

Boost Retention Through Employee Wellness

At the end of the day, keeping employees at your organization is about keeping them happy. People don’t leave jobs where they’re comfortable, well-compensated, fulfilled, and experiencing a healthy work environment. There’d be no reason to give that up!

Supporting your workforce’s wellbeing can be a powerful way to make all of that a reality at your organization. 93% percent of workers believe their wellbeing is just as important as their salary, and 70% of workers would consider leaving a company that doesn’t focus on employee wellbeing. A wellbeing program systematizes that support, which can translate into increased employee satisfaction and retention.

If you need help designing a workplace that prioritizes mental and physical wellness, speak to a Wellbeing Specialist today!