Would you be surprised to know that the expense of recruiting a new employee is way lesser than retaining a productive and knowledgeable employee? Well, let’s check out some facts!
According to studies conducted, 47% of HR professionals said retention was the top talent management challenge they faced, closely followed by recruitment at 36%. So now you see the direct correlation between retention and recruitment expense.
Every problem has one or sometimes multiple solutions. Here, the easy solution is to increase everyone’s salary, but that is not very practical. Also, do you think salary is the only major factor that influences the employee’s decision? Fortunately, it is not.
Flexible work arrangements, benefits, professional development opportunities, advancement opportunities, company culture, etc. play a critical role in employee retention more than a 6-digit salary.
1. Employees seek for opportunities of professional development
Imagine losing your employees due to the limited chances you offer for their professional growth! That is one of the worst reasons to say goodbye to any organization. Not only because you lose your best human resource but you will also risk the company’s brand reputation.
As per the survey conducted by LinkedIn for its annual Workplace Learning Report 94% of employees said they would stay at a company longer if it invested in their professional development. That is a huge number to be ignored. Now, how can we manage this serious need!
First of all, we should understand the fact that we are addressing a group of people who are extremely dynamic and vibrant. They have tremendous energy to learn and practice new things. Therefore, your organization should be ready to provide effective learning and development programs.
It is not an easy task because according to each individual the interest and need for development vary. Your company should be able to identify what is lacking and the training and development programs should be given accordingly. Also, make sure that you remember, learning is a continuous process. Because a one-time opportunity is not going to help you retain your workforce.
Providing tuition assistance is also a great way to retain your people. Your organization may not be equipped to offer in-house training, but you can support your employees by subsidizing their education and it can be either limited to specific courses and credentials valuable to your organization or unrestricted.
2. People leave managers, not companies
Having good managers is absolutely an asset to the companies. Their relationship with the employees plays a good role in increasing the company–employee rapport. Sometimes, managers cause emotional struggles which are capable enough to ignite major fires. Appointing the wrong person as a leader could put the base of your workforce at risk.
Make sure that you know your people well.
Conduct feedback programs on a regular basis. Let them know that their concerns are being addressed. Also, take action if it is necessary because a slow response can be viewed as a sign that their concerns are not a priority and that it’s time to explore other career opportunities.
3. Keep them professionally entertained
In fact, for every 10 months, an employee stays in a position, their chances of quitting increase by 1%. Giving them challenging and exciting works and platforms to experience new responsibilities keeps them engaged at their jobs. Employees who remain in the same role for an extended period are more likely to leave an organization. So, give them the professional entertainment of gaining new knowledge and skills.
4. Ensure that you provide adequate employee recognition and appreciation
No matter what job or task you do, appreciation gives you the motivation to go further and perform better. Studies conducted by a group of psychologists show that appreciation can be very simple; while formal ‘gratitude letters’ or even lighter touch can enhance wellbeing: a few words, a text, a phone call, even a smile, may make the difference between disappointment and despondency and a sense of wellbeing and hopefulness.
In a world of competition, success, and failure these kinds of gestures truly matter. A sobering 66% of employees say they would quit their job if they felt unappreciated. According to one Gallup poll, 65% of people feel unappreciated at their job. Is it not concerning! Meanwhile, another study discovered that the office comes in last on the list of places where people express gratitude. These statistics indicate that to retain the employee, an organization has a lot to work on.
Employee appreciation should be a part of your company culture. Let them know that they are important to your company and their contributions are being counted. Celebrate their success as it is yours.
5. Improve the process of onboarding
Studies indicate that 76% of respondents’ workplaces aren’t onboarding their new hires properly, while only 47 % believed their onboarding program effectively retained new employees. So the turnover rate which is inversely proportional to the productivity will be so high and could have adverse effects on your company profits. A highly expensive process of recruitment for a new worker who might resign after 2 or 3 months of work is an indication of poor onboarding.
So, what can we do about it?
Did you know 40% of onboarding activities consist of filling out paperwork? and imagine how boring and mechanical it can be! Therefore, try including activities that have interactive sessions and company culture promotions. the newcomers should feel that they belong to the workplace and they are part of it.
Throwing more money would not bring affection and passion. There are many other ways to retain your employee. All you have to do is, observe, listen and take actions accordingly. Sometimes, employees leave your company due to personal or other reasons and during such times, give them a good farewell that they will remember. It is always good to hear good things about your institution from others, especially your former employees.