EFFECTIVE EMPLOYEE RETENTION STRATEGIES

 

What is Employee Retention?

Employee turnover, or the quantity of employees who quit their jobs within a given time frame, either freely or involuntarily, is described as an organization's ability to prevent it. The success and effectiveness of an organization can directly be affected by staff retention.

For an organization to succeed, its top personnel must be retained. Retention of employees aims to achieve this. Employee retention refers to the plans a business makes to reduce the likelihood of employee turnover and the procedures it implements to keep its most valuable employees. Employee retention is currently a major concern for businesses and HR departments.

People quit their jobs for a variety of reasons. Others are forced, like being laid off, while some are chosen, like changing jobs. Instead of the loss of a poor performer, employee retention methods largely concentrate on voluntary turnover that is harmful to the company.

Why Retention is important?

The cost of improving retention is one of the factors that drive organizations to do so. Recruitment, training, lost earnings, lost productivity, and other expenses are included in the cost of turnover. According to a Deloitte analysis, replacing an employee typically costs roughly $7,000. This can pile up quickly in large firms with a high turnover rate. While this sum might appear acceptable, the cost of lost productivity, which is estimated to be around $120,000 per employee, is more startling and harder to perceive in a financial report. The bottom line can be affected by even one employee leaving.

The company culture is a further justification for emphasizing staff retention. Because there are fewer long-term employees who can model the desired behaviors, high-turnover organizations struggle to create the culture they desire. Additionally, it creates a sour atmosphere and makes employees wonder why they are remaining when they observe that others routinely quit the company.

How to Improve Employee Retention

Starting with the appropriate hire will improve staff retention. In order to accomplish this, it is necessary to define the job in its entirety, including its duties, necessary skills, and working conditions, as well as to create a carefully crafted job description that draws in qualified individuals. 

Making a new hire feel at home after selection is made is mostly dependent on orientation and onboarding. Employee retention, engagement, and dedication have been demonstrated to increase with a well-planned and structured onboarding program. Additionally, it's crucial to offer employees perks and competitive pay in order to attract and retain the best and the brightest. Competitive bonuses, paid time off, health benefits, and retirement plans are all examples of this. Employees also desire meaningful employment that utilizes their skills and abilities well. Other crucial elements of employee retention include opportunities for career growth and development as well as rewards for their achievements.

10 Benefits of Employee Retention

Employee Retention Strategies

 

ü  Build employee engagement

ü  Get recognition and rewards right

ü  Recruit the right employees

ü  Create an exceptional on boarding experience

ü  Provide avenues for professional development

ü  Build culture employees want to be a part of

ü  Offer winning incentives

ü  Manage to retain

ü  Prevent burnout by focusing on employee wellness

Employee Retention Models

 

The Hierarchy of Needs.

The Hierarchy of Wants was created by psychologist Abraham Maslow in order to understand the most important human needs and which ones should be satisfied first. However, the theory may also be used to investigate the factors that are most important for job satisfaction. The five levels of wants are psychological, safety, belongingness, esteem, and self-actualization in that order of significance.

 

Motivation-Hygiene Theory.

According to psychologist Fredrick Herzberg, there are two main aspects that affect job satisfaction: Recognition, meaningful work, and personal development are examples of motivators, often known as job satisfiers. Salary, benefits, and work security are examples of hygiene, often known as employment dissatisfiers. It should be noted that while good management of hygiene issues might reduce employee unhappiness, they are not thought of as sources of motivation or satisfaction.

 

Human Motivation Theory.

Maslow's concept was expanded upon by psychologist David McClelland, who named three intrinsic human needs—accomplishment, power, and affiliation—in his 1961 book The Achieving Society. Employers can improve their employees' job happiness by identifying which needs are most important to them. For instance, some workers could feel humiliated by positive public opinion. For some people, assignments with objectives work best.

 

Job Characteristics Model.

The following employment attributes, according to organizational psychologists Greg R. Oldham and J. Richard Hackman, improve job satisfaction: skill variety, task identity, task relevance, autonomy, and feedback. Jobs designed with these qualities in mind result in employees who are more motivated and productive.

 

Conclusion:

Particularly if you already have significant turnover rates, retention is a problem that needs to be addressed. Improved productivity and higher employee satisfaction can also result from raising employee engagement, which can also help with retention. Pay attention to your company culture and make proactive changes to increase engagement, particularly among your best employees.

 

References:

 

Hastings, R., 2022. 14 Employee Retention Strategies for Your Company in 2023 [Online]
Available at: https://emeritus.org/blog/strategies-for-employee-retention/
[Accessed 07 Dec 2022]

 

Achievers, 2021. 9 Employee Retention Strategies for Keeping Your Best Talent [Online]
Available at: https://www.achievers.com/blog/employee-retention-strategies/
[Accessed 07 Dec 2022]

 

Holiday, M., 2021. What Is Employee Retention? Benefits, Tips & Metrics [Online]
Available at: https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention.shtml#:~:text=Improving%20employee%20retention%20begins%20with,retention%2C%20as%20does%20meaningful%20work.
[Accessed 07 Dec 2022]