Employees serve to be the mainframe of any business organization. The operative functionality and success of a business highly reliant on the employees working within the enterprise. That being said, in a highly competitive and cut throat market, employee retention strategies are a very crucial part of maintaining operational efficiency and keeping the employee turnover costs low. Not only the cost and financial aspects make the retention of employees crucial, but also losing employees working in your organization can have several ramifications and serious impacts on your business.
Why is Employee Retention essential?
Losing an employee can turn out to be hugely impactful for businesses. No matter the size of the business, the industry of operation, or the total turnover of a business, losing an employee has both financial and operational ramifications on a business. To be more precise and simpler, replacing an employee is costly for any kind of business, and employee turnover costs can hugely impact the finances of an enterprise. This makes employee retention extremely essential for all enterprises, anywhere across the world.
While losing a top talent working in your
company can affect the performance of your business, it also has an impact on
the working environment and employees’ psychologies. High employee turnover can
severely damage employee morale and disrupt the entire momentum and healthy
communication prevalent within an organization. A high rate of employee
attrition can be a real issue for any employer. Several businesses have
therefore paid serious attention to employee retention through several advanced
techniques and employee
retention strategies, through various forms of appraisals, offers,
techniques, employee engagement
activities, and a lot more.
When focusing on the financial ramifications
of losing an employee, studies have shown that the total cost of losing an
employee can be as costly as up to 1.5 to 2 times the employee’s annual salary.
A study in 2017 found that turnover costs employers $15,000 per worker.
According to the Society for Human Resource Management (SHRM), employers will
spend up to “the equivalent six to nine months of an employee’s salary in order
to find and train their replacement.
Along with all that, the stress of finding a
suitable and competent replacement for a certain job position or work profile
can be an extremely difficult as well as time-consuming task, not mentioning
the huge costs as stated earlier in the article, and suggested by several
All these make employee engagement activities to retain employees an essential
for all kinds and sizes of businesses. Job satisfaction and a good working
environment, with security and improved employee benefits, can be essential to
What is Employee Retention basically? Employee Retention is basically a plan or set of steps that are done to reduce the employee turnover rate. It is a set of policies, programs, and strategies that are designed to attract employees and retain them within the organization. To retain competent and qualified employees, employers design various employee retention strategies through the implementation of specific plans, policies and programs, and employee engagement activities. These activities and plans are based on the specific needs of the employee who is to be retained.
Employee Retention is basically a plan or set of steps that are done to reduce the employee turnover rate. It is a set of policies, programs, and strategies that are designed to attract employees and retain them within the organization. To retain competent and qualified employees, employers design various employee retention strategies through the implementation of specific plans, policies and programs, and employee engagement activities. These activities and plans are based on the specific needs of the employee who is to be retained.
All that being said, an employer might often
wonder as to how to create the most effective and efficient employee retention
strategies that can produce good results. With extensive research, analysis,
and recommendations from experts, we have compiled a list of the 9 best ways to
retain an employee. The list contains the best strategies and employee
engagement activities that can be actually useful and work effectively for
9 Ways to Retain Employees
Employee retention is at the top of the priority list of any employer. With the huge impact and ramifications of losing a valuable employee, it is no surprise that all enterprises focus on employee retention techniques and strategies not only to manage the financial aspect through the decrease of the employee turnover costs along with improving employee morale and the working environment within the organization.
According to a Work Institute study covering 250,000 US employees, companies need a proactive strategy for retaining employees. The research suggests that more than three out of four employees who left an organization in 2019 could have been retained.
According to Glint data, employees are six times more likely to consider leaving their organization if they do not rate their manager highly, compared with those who do. The report suggested that 11% of employees could not be retained due to manager behavior. Career development (22%), and work-life balance (12%) are the two other major causes of employee attrition. Let’s take a look at the nine effective and essential ways to retain valuable employees within your organization.
1. Optimizing the hiring process
2. Employee benefits and perks
3. Employee compensation and additional incentives
4. Effective training and development programs for employees and managers
5. Proper workplace communication and feedback
6. Annual performance reviews, recognition and rewards systems
7. Work-life balance
8. Recognizing the employee psychology behind their desire to leave or stay
9. Crisis management, and dealing with change through flexible working arrangements
1. Optimizing the hiring process
The hiring process is extremely crucial to employee retention. If a certain employee is not suitable for a certain job profile, the employee would obviously want to leave the company due to poor job satisfaction and the difficulties that the person might be facing. Having a good HR team who can handle and execute the hiring of competent and skilled professionals can be a great way to retain employees in the long run. A job description that clearly describes the expected qualifications, skills, and experience of the position is essential.
Bizex is software that has been created and developed for assisting business teams of various sizes across the country. It effectively encourages the implementation and assistance to the hiring team, irrespective of the level or type of business. Bizex has greatly simplified HR challenges to a large extent and can be used effectively to optimize the hiring process for employee retention.
2. Employee benefits and perks
Another extremely important point on the list of employee engagement activities is this one. Paid time off for volunteering, adequate compensation for overtime, offering meals and snacks, special packages and group discounts for employees can be great ways to boost employee morale and effectively inspire employees to stay in your organization.
Employee compensation and additional incentives
The market is a highly competitive labor
market in every industry that calls for adequate and appropriate employee
compensation along with complete and attractive incentive packages that can
effectively influence an employee and boost their morale and make their stay at
your firm more attractive and satisfying. Timely salaries, bonuses, paid time
off, health benefits and retirement plans can be the most important things to
pay attention to. Every employee should have a full understanding of the
Effective training and development programs for employees and managers
It is a priority to invest in your employees’
professional development and enhance opportunities for them to grow and develop
while working at your firm. Such training and development programs are
important in employee engagement activities.
Along with employees, managers or leaders must
also be well-trained to effectively help retain employees and create a
sustainable work environment as well as team coordination and a sense of unity
within a certain team of employees.
Proper workplace communication and feedback
Keeping a well-established form of connection
and open lines of communication within the organization is extremely essential
and a practice that can help in employee retention. Employees must be able to
directly communicate with the managerial team and put forward their ideas,
views, grievances, and concerns. Such forms of employee engagement activities
can be a very effective way to enhance and improve
Annual performance reviews, recognition and rewards systems
Regular and timely interaction through employee
engagement activities like annual performance review and rewards programs
can be a great way to enhance and effectively execute employee retention
programs. A recognition of the performances and a rewards system along with a
discussion about the short and long-term goals of the company can greatly boost
employee morale and increase the chances of their retention.
One of the crucial parts of employee
retention is creating a work-life balance in the life of employees. A work
culture that encourages and rewards around-the-clock availability, or expecting
employees to work regular long hours can be a major cause of employee attrition.
Avoiding such cultures and helping employees create a balance and enabling
personal time for employees is a great way to retain employees effectively.
Recognizing the employee psychology behind their desire to leave or stay
Addressing the issues and grievances faced by
employees and identifying why certain employees stay or leave your firm can be
essential in effectively developing working staff retention strategies.
Crisis management, and dealing with change through flexible working arrangements
Crisis management plans are important in dealing with employee attrition and effectively retaining employees during emergency situations or exceptional cases. Flexible work arrangements and other employee engagement activities during such circumstances or transition periods can be a great way to effectively manage such situations. All that being said, the above employee engagement activities and the programs and plans can be effective and highly efficient employee retention strategies that can be effectively used to retain employees at your enterprise.