The post-pandemic employment market has turned into a worker’s market, with employees voicing strong opinions on workplace preferences and employee turnover ratios experiencing new highs. Reports indicate that some of the reasons for workers leaving their jobs include a lack of competitive salary packages, few career advancement opportunities, no work-life balance, an increase in preference for remote work opportunities, and other similar reasons.
It has been estimated that employee turnover in the US alone is likely to jump nearly 20 percent from a pre-pandemic average of 31.9 million to 37.4 million employees quitting their jobs in 2022. Piers Hudson, Sr. Director in Gartner HR practice has stated that “ New employee expectations, and the availability of hybrid arrangements, will continue to fuel rise in attrition.”
As the market norms witness a shift, companies now find themselves facing the challenge of developing better employee retention strategies to retain their best workers.
Employee retention is an organizational effort aimed to retain talented employees by fostering a positive work environment that supports and promotes employee well-being, employee engagement, and work-life balance along with providing competitive pay and benefits packages.
High rates of employee turnover can hinder organizational goals due to:
- Breaks in work continuity and sustainability
- Loss of valuable expertise and knowledge
- Lower levels of productivity
- An increase in the costs due to worker replacement
It is also important to note that an increase in employee turnover numbers can result in an overall negative corporate culture image. Other employees may experience a sense of demotivation and low morale which may lead to more employees wanting to leave the organization.
Companies must understand that employee retention is integral for team building, trust, and cohesion in the workplace. A key aspect to keep in mind while devising effective employee retention strategies is to develop a clear understanding of why employees leave an organization and why they prefer to stay on.
In the current scenario, we are witnessing a shift where the market is becoming a workers’ market. Factors such as employee engagement, employee well-being, work-life balance, and hybrid work preferences are playing an integral role in the “Great Resignation” movement that most companies are now facing.
Organizations are striving to maintain and continuously improve the image of their corporate culture and offer an environment where their key workers would want to continue working.
Here are 7 Effective Employee Retention Strategies to improve worker satisfaction and allow companies to retain their top talent:
The Covid-19 pandemic and subsequent supply chain restraints have greatly affected inflationary measures worldwide. The annual inflation rate in the US stands at 8.3 percent in 2022.
Keeping inflationary figures in mind and considering the amount of time and effort workers are putting in, HR leaders should work on developing a competitive pay and benefits plan. As a company, you should work on being above or remaining on par with industry benchmarks in order to attract and retain top talent.
Recruiting the right people can have a strong impact on the employee turnover ratio. While assessing the expertise and skill set of potential employees, HR leaders should also consider hiring candidates who align well with the corporate culture.
A study by Gallup revealed that only 12% of employees felt that their company did a good job with the onboarding program. The unfortunate consequence here is a significant turnover within the first year of employment.
We need to understand that employee turnover is often high among new employees, but the existence of an exceptional onboarding program can curb turnover numbers.
It is imperative to make employees feel welcome and a part of the organization right from the start. A well-developed onboarding program helps new hires embed into the corporate culture, allows them to socialize and connect with peers and supervisors, creates personal relationships, increases learning opportunities, and enhances employee engagement.
Leaders and managers must develop sustainable Recognition and Rewards Programs. Workers who feel that their efforts are recognized and rewarded subsequently are more likely to stay with an organization for a longer term. Research shows that recognition and rewards significantly affect employee retention.
An integral strategy for employee retention is to build up the engagement levels between workers and the organization. Engaged employees have higher levels of job satisfaction, they enjoy working for the company, and they feel their work adds on as a valuable contribution towards the company’s success.
“Elements of engagement are important factors that not only cause individuals to join an organization but also help to retain those employees.” - Harter & Blacksmith, 2010
Employee burnout is real! According to a report by Gallup, 76% of employees experience burnout on the job sometimes, and 28% say they are burned out very often or always. Employees experiencing burnout symptoms show a lack of interest and energy, negative feelings, and a disengaged attitude.
Following the Covid-19 pandemic, we have become more aware of the importance of our physical and mental health. In the work environment, companies are now making efforts to boost employee wellness programs. Some companies run seminars on the importance of mental health while others are implementing stringent policies for sick leave and providing a clean and safe working environment. The concept of work-life balance is now positioned as a vital aspect while considering employee well-being.
When companies prioritize Diversity, Equity, and Inclusion (DEI), they ultimately benefit through shared information, knowledge, and innovation. In a work environment that benefits from the presence of a diverse workforce, managers must make a conscious effort to view their workers at an individual level and understand their unique needs.
Employee turnover numbers are typically low in a work environment where employees feel more included and involved.
Employee retention is extremely important to business continuity and success. When an employee leaves an organization, it affects the company in terms of productivity, cost, and low employee morale. Thus, implementing employee retention strategies based on the factors mentioned above is imperative for business operations and sustainability.
