How can I improve employee retention?
Employee retention is a measure of business stability and employee satisfaction. It is calculated by totaling all people employed for entire period measured divided by all employees at the start of the period. In other words, what percentage of people employed at a point in time are still there at a later time. Retention can be improved through better understanding of motivations, feedback, and employee engagement.
Why is employee retention important?
The Bureau of Labor Statistics reports that 3.6 million employees quit voluntarily last year. 3 out of 4 employees quit their jobs because of workplace conditions. Gallup calculates the cost of voluntary turnover to US businesses at one trillion dollars every year. Companies that retain employees also retain knowledge and sustain their culture.
What are factors that affect employee retention?
Factors that lead to loyal and productive employees:
- Fairness—employees feel there is no special treatment (or the appearance of it) for some employees over others. Advancement and acknowledgement come from merit and success rather than favoritism.
- Encouragement—employees are supported, trained, and encouraged toward success rather than intimidated and threatened.
- Leadership—managers lead employees and teams in a cooperative and supportive manner, providing enough information, structure, and direction without micromanagement.
- Effective communication—employees are well-informed but not overly burdened by too many meetings.
- Coaching—a culture of learning, skills development, and mentoring provides feedback that is empowering. Both employees and employers achieve their goals.
- Recognition—everyone wants their contribution and success to be acknowledged. Companies that give credit where credit is due have a better chance of employee retention.
What are stay interviews?
Stay interviews help you and your HR director zero in on specific problems to increase retention. Stay interviews help determine general employee satisfaction, identify problems that affect retention, pinpoint factors leading to satisfaction, and measure satisfaction with immediate supervisors. The insight from stay interviews can be used to improve overall business effectiveness as well as individual employee retention.
What can I do to improve employee retention?
- Engage your employees to drive consistent performance and resolve issues that impact morale, teamwork and productivity
- Coach employees to connect, grow, and promote desired behaviors and outcomes
- Upskill employees so that they have a growth path and their contribution increases
- Flexible Scheduling to improve attendance, predictability, and support work/life balance
- Remote Work options where possible to increase flexibility, improve safety, and cut costs
- Offer benefits that are attractive and meaningful to your employees
- Manage performance as an on-going, structured process that provides timely feedback and opportunities to course correct
Human Resources Techniques that Improve Communication and Help You Keep Your Best Employees
The Good, Bad, and Ugly: Management Effect on Employee Retention
How Workforce Management for Manufacturing Increases Employee Retention
Proven Strategies from Successful Businesses to Keep Your Employees from Quitting