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13 effective employee retention strategies

13 effective employee retention strategies

Improving a company’s employee retention rate can help any business succeed. There are so many benefits of employee retention— stable workforces can cut costs, increase morale, and improve employee satisfaction. For many companies today, maintaining employee satisfaction and retaining top talent is challenging.

If you don’t have a solid employee retention strategy in place, you risk having high turnover rates that contribute to a disruption in productivity — costing you time, money, and possibly even brand reputation. 

Fortunately, the following employee retention ideas can make all the difference. Keep reading if you want to learn more about how to improve employee retention in your organization.

The 3 R’s of retention

Before we review the top employee retention strategies, let’s discuss the 3 R’s of retention. Employee retention is critical for any size organization, in any industry, regardless of how long they've been in business. A well-designed employee retention plan will create an atmosphere that meets personal and occupational needs and encourages people to stay in their roles long-term. This not only boosts company morale but also retains talented employees that help contribute to organizational success.

Three fundamental pillars stand out when we talk about supporting employee retention — respect, recognition, and reward.

Respect: the foundation

A respectful work environment allows all employees to feel valued in their role in an organization. This could involve things like embracing diversity or acknowledging individual contributions and strengths. Respectful atmospheres start with leadership and should be evident across the board, from everyday interactions to times when conflict resolution is necessary. 

Training programs focused on respect can help significantly improve workplace culture and boost morale, leading to higher retention rates.

Recognition: a powerful motivator

Few things match the power of praise. This goes beyond merely applauding achievements — it also means appreciating measures big and small. Frequent acknowledgments of effort can increase job satisfaction and improve productivity levels organization-wide, two things directly correlated to talent retention. 

An employee recognition plan should use thoughtfully structured incentive plans and regularly celebrate wins. It’s important to formally acknowledge victories to highlight employee success and support your talent on a personal level.

Reward: more than just money

Rewards can come in many forms and are a vital part of employee retention strategies. Although offering competitive salaries and attractive benefits packages is important, this should be just the start if you hope to create an atmosphere conducive to long-term employment. Yes, bonuses and compensation are appreciated, but you can do much more to thank your employees. In fact, research suggests that “social” or “symbolic” rewards — something as simple as a thank you card or an award — might be as motivating as monetary compensation, ultimately increasing everything from retention and motivation to performance output

Remember to “catch people doing something right.” Additionally, flexible working hours, remote options, opportunities for professional development, and wellness initiatives are all perks that increase engagement and help attract and retain talent. Regularly distributing symbolic rewards is a low- to no-cost way to show how much you value the people who work for you. 

13 best employee retention strategies

The following 13 employee retention ideas are easy to implement in any company. They can help you boost employee morale and reduce organizational turnover. 

1. Be intentional with the employees you hire

One of the easiest employee retention techniques starts with the hiring process. You should have a comprehensive, strategic plan in place that helps you carefully select the people you hire. This step is imperative, and you should always look for employees who align with your company’s performance goals and culture.

2. Provide clear career growth paths & opportunities

Employees who see opportunities for career growth are more likely to stay with a company. Offer training programs, mentorship initiatives, and more to demonstrate you’re as invested in professional development as your employees are.

3. Recognize & reward employee achievements

Employee recognition is instrumental in making people feel appreciated. Make it a point to regularly acknowledge accomplishments through formal awards, incentives, or simple words of thanks. Remember that even small acts of appreciation can create a positive work environment where employees thrive.

4. Offer competitive compensation

This should go without being said, but not being paid enough is a common cause of employee turnover. Competitive compensation doesn’t just attract people; it also improves retention rates. Make sure you have a firm grasp on fair and equitable rates for roles in your industry. You should strive to match or exceed the standard compensation for all positions in your organization to show that you appreciate the hard work of your employees.

5. Re-evaluate your benefits package

Pay is important, but it isn’t everything. Employees today are looking for more than just a decent paycheck. Competitive benefits packages can directly impact job satisfaction — a variety of health insurance options, matching retirement plans, and innovative wellness programs are all great ways to entice people to work for (and stay with) you. These types of added benefits help people achieve a healthy work-life balance, something that could easily encourage an employee to stay with their employer.

6. Implement workplace wellness initiatives

Today’s work culture is demanding. That’s why promoting a healthy work-life balance for employees is so important. Workplace wellness initiatives encourage balance and demonstrate how much you value your employees’ well-being. 

Including therapy for employees — like those offered at Talkspace — in your employee retention plan is a great start. Talkspace makes online therapy affordable and easy to access, and services can significantly benefit those struggling with stress or anxiety.

7. Prevent employee burnout

Research shows that around half (53%) of employees are burned out — it’s a serious issue in the professional landscape today. People are often overworked and under-compensated, and too many struggle to stay focused and motivated. One great way to prevent employee burnout is by offering mental health days and ensuring people take regular breaks. You should also encourage people to set boundaries, so they don’t feel bad when or if they prioritize self-care.

8. Maintain a positive work culture

People who are happy in their roles are more likely to stay with a company, and a positive work culture fosters happiness. Believe it or not, you can achieve this by doing simple things, like maintaining open lines of communication, creating incentive programs, and encouraging supportive collaboration.

9. Give employees work flexibility

The desire for workplace flexibility has become more prevalent since the pandemic forced many work-from-home opportunities. Particularly for remote workers who value autonomy over traditional work schedules, the opportunity to work from home or have a flexible schedule can increase productivity and satisfaction.

10. Improve employee engagement

Employee engagement and retention go hand in hand. In fact, studies show that engaged employees are much more committed to their organizations. Two major determiners of workplace engagement are when leadership tries to get to know their teams and when people feel set up for success and have access to the tools they need to do their job effectively. 

11. Keep an open line of communication

Open communication is linked to job satisfaction. Leadership should check in regularly with staff and employees to understand needs, address concerns, and provide necessary support to team members who need it. 

12. Ensure strong, positive leadership & management

Upbeat leadership styles create a positive company culture that makes people want to remain part of an organization. Leaders who care about their roles can more easily foster trust, which directly translates to higher job satisfaction and improved performance — a win-win for all parties. 

13. Conduct exit interviews & implement feedback

Exit interviews offer valuable employee feedback to help improve a company’s ability to retain employees long-term. The information gained during these conversations helps identify potential issues (while offering insight into what a company is already “getting right”). From there, you can start to capitalize on the positives and find ways to correct where needed. 

Invest in solutions that retain employees

The right employee retention strategies can help any organization thrive. One effective way to keep employees is by offering access to mental healthcare. Talkspace is an online therapy platform that makes getting help convenient and affordable. Your employees are your greatest asset — when you take care of them, they’ll take care of your business and be more likely to stay. 

Reach out today to learn how offering therapy is a great option for any company wondering how to improve employee retention in their organization. 

 

Sources:

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  2. Gallus, Jana. “Fostering Public Good Contributions with Symbolic Awards: A Large-Scale Natural Field Experiment at Wikipedia.” Management Science 63, no. 12 (2017): 3999–4015. https://doi.org/10.1287/mnsc.2016.2540. https://pubsonline.informs.org/doi/10.1287/mnsc.2016.2540. Accessed August 14, 2023. 
  3. Gallus, Jana, and Bruno S. Frey. “Awards: A Strategic Management Perspective.” Strategic Management Journal 37, no. 8 (2015): 1699–1714. https://doi.org/10.1002/smj.2415. https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.2415. Accessed August 14, 2023.
  4. Kosfeld, Michael, and Susanne Neckermann. “Getting More Work for Nothing? Symbolic Awards and Worker Performance.” American Economic Journal: Microeconomics 3, no. 3 (August 2011): 86–99. https://www.jstor.org/stable/41237198. Accessed August 14, 2023. 
  5. Bloom, Nicholas, James Liang, John Roberts, and Zhichun Jenny Ying. “Does Working from Home Work? Evidence from a Chinese Experiment*.” The Quarterly Journal of Economics 130, no. 1 (2014): 165–218. https://doi.org/10.1093/qje/qju032. https://academic.oup.com/qje/article-abstract/130/1/165/2337855?redirectedFrom=fulltext&login=false. Accessed August 14, 2023. 
  6. Hanaysha, Jalal. “Testing the Effects of Employee Engagement, Work Environment, and Organizational Learning on Organizational Commitment.” Procedia - Social and Behavioral Sciences 229 (2016): 289–97. https://doi.org/10.1016/j.sbspro.2016.07.139. https://www.sciencedirect.com/science/article/pii/S1877042816310746. Accessed August 14, 2023.


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