Employee Retention Definition
Employee retention is an aspect where employees choose to stay with their company and do not actively seek other job opportunities. The opposite of retention is turnover, where employees leave the company for reasons.
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Different Employee Retention Strategies that you can adopt
Every company strives to hold onto its resources for a time.
This enhances productivity and maintains business operations. Reduces the cost of rehiring.
Consequently, employee retention becomes a priority for organizations. However, in a hiring environment retaining employees can often be challenging.
By implementing strategies, you can retain your performing talent and create a workforce that is loyal, engaged and focused on delivering results.
It is important to note that retention approaches may vary from one employee to another.
So, what are the various methods you can employ to ensure retention? Keep in mind that your performing talent is unlikely to have the motivators, as the mid performing group.
Moreover, talented performers require retention systems, in their entirety.
Retention Approaches for Top Performers
Have you ever considered that, according to McKinsey, top performing employees are likely to be 400% more productive than their average counterparts?
While the specific percentage may vary among organizations it is crucial to prioritize retention strategies, for this group.
Assign them challenging tasks
By providing objectives for your top performers, you can keep them engaged and motivated.
This approach also allows them to further develop their careers by acquiring skills and accomplishments. The positive impact on their employability will foster loyalty towards your company.
Upgrade their skills
Once an employee becomes an expert in one area it’s beneficial to offer opportunities for cross skilling.
This ensures that the employee doesn’t feel the need to search for “the job” and instead has the chance to transition horizontally into a similar role within the organization.
Establish and implement a succession plan
Succession planning creates a talent pipeline that prepares performers for future leadership positions.
Involving this group of employees in your succession plan can be an approach for retention since they have an understanding of their growth trajectory within the company.
Employee retention strategies for average performers
Average performers make up the majority of the workforce in many organizations, making them responsible for a significant portion of productivity as well.
For example, if you manage a car showroom the average sales representative typically receives around 50% of the sales while the performing group might earn an additional 40%. That’s why retention strategies for this sector are equally important.
Providing benefits and perks
Offering tailored benefits can be a way to retain your employees as it gives them a sense of security about their future and improves their quality of life.
Conduct surveys to identify the benefits and focus on enhancing them.
Ensure they have leadership
Having managers is crucial for keeping employees motivated and satisfied with their work. This is especially important for performers who may lack self-motivation skills seen in performing employees.
Conduct surveys to gather feedback from employees about their supervisors.
Implement a social recognition system to acknowledge them
The contributions of performing employees should not go unnoticed.
By implementing a rewards and recognition platform you can make them feel valued in the workplace thereby reducing the likelihood of them leaving.
Strategies for Enhancing Employee Retention Demonstrated by Leading Companies
Organizations have prioritized employee retention. In addition to long-term strategies, they have also implemented cut ideas that have helped improve retention rates.
Here are few examples to get inspiration:
1. Create a roadmap for each department’s progression like Microsoft
Not all employees may be interested in taking on roles.
Some may prefer to specialize in their areas of expertise and grow within those domains.
If your company imposes limitations on the career advancement of skill sets those employees are likely to start looking for opportunities to learn and grow.
Learn from Microsoft’s example as they have established career progression tracks specifically for roles.
In some technology companies, technical expertise can thrive up to a point, after which employees may feel the need to transition into positions.
Microsoft addressed this by designing a track that supports employees throughout their career journey.
2. Provide support for employees in their pursuits like Walmart does.
Your employees may want to pursue education while working.
Traditionally this has resulted in turnover, which is regrettable for the company as they miss out on talented individuals with advanced skills and future-oriented perspectives.
By allowing employees to continue their education while on the job you can retain them.
Take inspiration from Walmart’s approach—this company has partnered with leading universities in the United States.
Employees have the opportunity to enroll in college courses as long as they align with their current or future roles at Walmart.
Hence the representatives of Walmart enjoy improved job opportunities with affordable financing options while also gaining access to a skilled and dedicated workforce.
3. To ensure employee retention Hilton Hotels recommends using a job preview tool.
Employees who have expectations when starting a job are more likely to quit within the first few months.
Alternatively, if your company offers a salary and benefits package employees may choose to stay with suboptimal performance levels.
Realistic job previews provide a phase where candidates can assess the real-world responsibilities of their role without any commitment.
Look at Hilton Hotels as an example which implements an evaluation period for its housekeeping positions.
Candidates are required to complete tasks like making a number of beds. This ensures that only the interested candidates are brought on board.
In the long run, this leads to a level of consistency as there is better alignment between candidates and their careers.
4. Establishing an environment where employees can thrive is crucial, similar to what Siemens does.
To truly create a retention system, you need a workplace that’s conducive to each employee’s needs.
For instance, parents with children may require time off.
Employees returning to education may need extended breaks.
Additionally, performing employees who have been relocated could opt for 100 percent work.
Your company culture should be flexible enough to accommodate these requirements.
Siemens took inspiration from their playbook by implementing a strategy called being that focuses on promoting adaptability among its representatives.
Recognizing that 16% of women and 2.5% of men who prefer to work at Siemens realized the importance of making this benefit accessible to everyone without the need for an approval process.
Therefore, a director, in charge of leading a team of 25 had the opportunity to travel across Asia for a period without seeking employment
Frequently Asked Questions
What factors influence employee retention in an organization?
Answer: Employees highly value a balance between serious activities and organizations that offer work arrangements and comprehensive time off policies and are more likely to retain their workforce. This also helps attract talent from various geographical locations.
What are the causes of employee turnover in an organization?
Answer: Employee compensation often serves as a reason for turnover. This is typically due to than expected salaries or a lack of salary increases. Insufficient employee benefits can also push individuals to seek opportunities elsewhere.
How does employee engagement contribute to the retention process?
Answer: The impact of employee engagement on retention is significant. Engaged employees are more likely to remain committed to your company fostering a culture. Employees often leave their positions when they feel disconnected from their role or colleagues.