A phenomenon where employees wish to keep working for their present company without looking for other job opportunities is known as employee retention. Organizations that experience this are definitely not encountering challenges related to the tightening of the labour market.
But you also can be one of those businesses that find high employee yields as a challenge. Retaining employees seems too difficult at times. So what will be your approach in that scenario?
It is first important to understand that today’s business world is a highly competitive one. Top talent is something that is always high in demand. In case you are unable to keep the top workers’ content, it will not take much time for other companies to grab them. Employee retention strategies prove to be highly beneficial.
This blog content comprises five important tips that if applied properly, can make employees hooked to your company for several years.
Tips that one cannot afford to overlook for Improving Employee Retention:
Recruit the Right Employees –
The screening of candidates is a very crucial part. Paying close attention is important as company success depends on this in several ways. Overlooking any signs of having a job-hopper can incur adverse effects later on. Although if a candidate has a habit of switching jobs due to career advancement, it is quite fine. But it is also not wrong to seek candidates who want to grow with your business rather than just acquire experience for someplace else.
Offering Guidance –
When a group of new hires joins your company, you cannot expect them to understand your mission and vision at once. They need to first feel comfortable. You can start by constructing a definite job plan that will keep every employee aware of their individual job duties. Also, day to day feedback on performance will also help the workers. The moment an employee feels perplexed regarding his role within the company, he will lose interest & automatically start sending CVs to other companies.
Craft the Correct Culture –
The vibe inside & around your office premises matters. If it is chaotic, messy, employees will face a hard time forming a bond with your company. But to the contrary, a vivacious & lively environment will help attract good employees. The company culture needs to match with the kind of employee you are about to hire. The environment can be a laid-back one, by-the-book, or a casual workplace but placing focus on the company culture is important. It must be something that motivates the employees on a regular basis to do better. Transparency & fairness are basic yet robust concepts that create a lasting impression on the employees.
Provide Training –
It is true that businesses pay more focus on potential employees who are completely certified & trained. But it is also a fact that a particular employee might not carry a few skills that are a must in your business processes. However, this never means that not hiring that employee will make your job any easier. Instead, company owners must invest in each of their employees so that they are able to maintain their credentials. You can choose to offer employees membership to several e-learning websites or send them to a reputed learning centre. By seriously considering your employees’ education, you are creating a strong bond as they will visualize it as an important investment in their entire career.
Pay Generously –
Every business undergoes certain stages when it finds a tight budget & low funds. In that kind of scenario, are you thinking of asking employees to quit? Sure you can but it is important to measure the cost of substituting employees. This costs almost 40% to 60% of an entry-level worker’s annual salary for replacing him. Sometimes employees choose to move to another company if they receive a 20% to 30% salary increase. The jumping shift does seem attractive to them but it will be a loss for the company head.
Why enhance Employee Retention?
There are several businesses right now in the whole world that treat employees as if they were supposed to do all the work they are doing. These businesses are of the view that even the finest workers can be easily substituted. The economy we are standing in currently is a tricky one. There is no shortage of people who are desperately seeking work. But this kind of thinking is simply wrong.
Great companies know the significance of keeping their work staff intact for longer time periods. As they do so, it becomes less necessary to spend money & time on replacing employees. This can have a devastating effect on the bottom lines of a business. An all-inclusive employee retention program or HRMS software can play an important role in attracting & preserving key employees & also eradicating turnover & related costs. Each one of these things contributes to a company’s productivity & overall performance.
Even when you know vital tips for improving employee retention, it is challenging to understand its value without learning the benefits of staff retention. How well you value & think about your employees decides the future of your business. So let’s begin by learning the intricacies of staff retention.
- Constructing a business without steadiness is impossible – When the employees of a company come & go at a fast pace, developing a successful business is next to impossible. A company will find it challenging to maintain momentum if the work environment resembles a revolving door. Managers then need to emphasize more on retaining employees continuously & also need to keep other employees engaged. When this happens, spotlighting on larger goals becomes even more difficult.
The longer an employee will keep working at a company, the more skills they will acquire. To be precise, the finest personnel are the ones who are most tenured. But this might not be the case all the time.
Retention is extremely important for ROI. Nothing much you can anticipate from a workforce that is flooded with rookies. Spiralling a business begins with keeping the entire workforce on board.
Growing businesses can extract value by incorporating HRMS software as well. Human Resource Management Software not just enhances ROI but mechanizes administrative tasks as well. Such software brings along Attendance Management features as well which puts forward enhanced timekeeping. As the employee attendance system facilitates precise estimation of working hours, this not only eradicates errors but also helps with payroll computation.
- Loss of ideas & talent – Sometimes employees are propelled to search for employment elsewhere. An employee will pave its way for success somewhere else but the company it resigns from will encounter loss. It will not only need to substitute the vacant space with new employees but it will lose the previous employees’ institutional knowledge & their talents.
However, companies can always implement employee retention strategies for the purpose of preserving institutional knowledge like internal Wikis & documentation. But these can replace the individual who carries concrete knowledge of particular processes.
- Customers keep a check when names vary – In instances when a company is in the growing stage, your regular clients will automatically be accustomed to interacting with your employees. But sometimes employees leave due to poor interaction with boss or coworkers, unchallenged at work, poor corporate culture. During those times, your clients might feel uncomfortable communicating with new employees. They might even decide not to avail services from you anymore.
It is quite common for employees to move from one organization to another as they move forward in their career path. However, this kind of behaviour must never become an everyday occurrence. Spelling confidence within the company is very important.
- Turnover Compresses the bottom line – As per a survey, the approximate cost is 30% of a personnel’s salary to replace that person. Hence, when workers leave constantly for greener pastures, as a company head, you will need to invest more than 2 months’ salary simply to discover somebody to replace them.
When the replacement of employees becomes a regular phenomenon, it will account for a huge amount of money. High turnover will eventually squeeze the bottom line of a business. So it is important to craft strategies to reduce employee turnover.
So the emphasis must only be on employee retention. This will leave you with a proficient team that carries the expertise of performing tasks with precision. Also, you will gain more chances of enjoying a better corporate purse.
- Fleeting workforce makes it challenging to establish companionship – Many conducted research has shown that the one thing people love about their job is their peers. But employees can never develop sturdy bonds with co-workers if the team members continually leave the organization. This will never paint the most vivacious image of your work culture or your business.
There needs to be companionship among all the employees so that they are able to help one another quickly. Enhancing employee retention is more like developing a team that is tight-knit & the one that will stick with the lows & highs of a company.
However, losing employees from time to time for various opportunities is sometimes okay. But if your focus is building a team that works fantastically together, you can never afford to let it be the rule.
- Job seekers also notice name changes – There is a wide range of websites available these days where enthusiastic candidates can search for jobs relevant to their industry. So when an individual is applying to a company, from the description, he/she will learn what it will be like to function at that company. But when employees constantly leave, the branding of that company will take a hit on these websites for job seekers. Job seekers must not encounter terrible reviews.
- The direct benefit to the competitors – Even when talented, an employee can choose to leave work at a company due to moving to some other place or switching industries.
In another instance, that person might also seek employment at the company of one of your competitors. The competitor company might have better perks or the company can also choose to approach your employee first.
In both instances, losing staff members is very risky. They will actually end up working for a company that is actually your competition. How will you feel when you witness a former employee of yours perform tremendously at another competing organization? This accounts for a lot of wasted potentials.
But there are also ways to make sure that the competitors do not benefit from the skills & talents of your existing employees. This you can ensure by enhancing employee retention. You need to offer more perks & benefits to your valued employees. Personnel must be able to experience the flexibility of working remotely & also at times they feel convenient. It is also sometimes advisable to host an organization happy hours. Undertaking exercises for team-building also holds a lot of significance. When you do everything to make the employees’ lives better, each one of them will stick around.
- Focusing only on newly hired employees – The managers that a company hires in the first place do not carry the responsibility of training new employees over & over again. The managers’ work is to help the new employees develop which will also lead to business growth.
But when the rates of employee retention are really low, managers need to spend a lot of time retraining & training employees. This takes up much time which is why the managers will also be unable to emphasize the bigger picture.
Now that we know how important it is to enhance employee retention, it is also advisable to revisit employee retention strategies at least one time a year. This incorporates staying updated regarding the market standards for best practices & salary for developing an eye-catching workplace culture & robust employee-manager relations. This is the best way of keeping skilled professionals content about working for your company. Investing in sound HRMS software is important. This helps in streamlining HR along with talent management, payroll & benefits in a centralized platform. Give a call today to know more about exactllyHRMS and also for a Free Demo. We ensure only profits to your company & zero loss.