BAC 102 – Retention Plan & Retention Strategies
What is employee retention?
Employee retention is an organization’s ability to keep (retain) its
current employees. It’s closely linked to employee experience since
a positive experience is associated with higher Intent to Stay.
Employee retention strategies are the actions organizations take to
keep employees happy, engaged, and productive at work.
Employees are the most valuable asset of any successful business—and
employee retention strategies should be one of your top priorities. It’s great
to get that top talent through the door, especially in a competitive job
market, but how do you keep hold of them?
Along with a comprehensive compensation strategy and opportunities for
growth, your company’s culture and values can have a huge impact on
employee retention.
Read on to discover five ways HR professionals can improve morale,
strengthen company culture, and earn long-term employee retention.
Why Is Employee Retention Important?
The importance of employee retention is felt across the business: from
profitability and productivity to culture and camaraderie. The cost of
advertising for open roles, training and onboarding new employees can be as
much as $1 trillion for large companies — and that’s before we mention the
knock-on effect this can have on turnover and revenue.
Of course, employee retention also affects the quality of your business.
Experienced employees who understand your industry and your brand inside
and out are one of the best secret weapons you can have in your arsenal. In
turn, they help create a knowledgeable and passionate culture within your
business.
This harmony within your enterprise leads to a better employee experience,
and the cycle continues. With so many upsides, it’s easy to see why making
a winning employee retention plan is a must.
Included. Supported. Retained.
5 Employee Retention Strategies Every Business Needs
1. Craft Intentional Job Descriptions
The job description is everything. If you’re not clear about your expectations
and values from the outset, your new employee may feel blindsided and
unprepared. Most organizations list their values as bullet points somewhere
toward the end of the job description, meaning a lot of potential employees
might just gloss right over them. One of the easiest ways to retain
employees is to simply change your attitude to your job descriptions.
If one of your values is agility, highlight the importance of autonomy and fast
decision-making in the advertised role. If you prioritize the wellbeing of your
employees, advertise your wellness package. As far as employee retention
strategies go, this is one of the most straightforward and ensures clear
expectations from the outset.
2. Improve Your Total Compensation Strategy
Compensation is one of the most fundamental factors that can affect
employee performance, job satisfaction and, ultimately, retention.
This doesn’t just mean offering the big bucks: it means competitive
pay, compelling rewards, and equal pay in your workplace.
If you’re looking for how to increase employee retention, re-assessing your
compensation strategy can have a huge impact.
Some meaningful retention strategies for compensation include:
Close pay gaps. Use the data available to you from HR to identify
areas of pay disparity (between roles, within departments etc.) and
close those gaps. This can also have a knock-on effect on an
employee’s bonuses, benefits and perks.
Standardize your compensation strategy. Data is your friend.
Comparing your compensation offerings with other businesses means
you can remain informed and competitive in the marketplace. Having
set bands based on different levels and locations means you’re
creating a more equitable experience for all.
Be transparent. Honesty and transparency go a long way. Sometimes
just sharing the rationale behind your pay decisions is one of the best
employee retention ideas you can implement. A SHRM survey found
that 91% of employees that believe their company is transparent about
pay decisions are also more likely to trust their organization to pay
people equally regardless of gender, race and ethnicity. Not only do
these open conversations make your employees feel more valued and
fairly compensated, they also help to create a stronger company
culture.
3. Nurture a Healthy Company Culture
Company culture is becoming increasingly valuable to employees. The
average American spends one-third of their life at work, so it’s important that
those hours are spent somewhere safe, happy and enjoyable. Curating the
right company culture can play a huge role when trying to think of creative
ways to retain employees.
First, you want to make sure that whoever you hire is the right fit for your
company culture. You don’t just want someone who can do the job: you want
someone to flourish within your business. Your vision and their vision need to
align.
During the interview stage, ask the candidate where they have
demonstrated your company values in their previous role, how they interpret
your values, or which value they feel they embody the most. These sorts of
questions go beyond the job description and can help you find an employee
worth retaining.
If you don’t yet have a clearly defined company culture, begin by considering
these three pillars:
Communication: How do your employees communicate with you and
with each other?
Accountability: What are the consequences of outstanding or
mediocre performance?
Community: How do your employees relate to each other and your
business?
Nurturing a supportive, enticing and productive company culture is one of
the most effective ways to retain employees.
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4. Prioritize Praise and Feedback
One of the most demoralizing experiences at work is feeling unrecognized.
Even if you make your values clear from the outset, it’s still important to
recognize employees who exemplify those values in their work. When you
routinely praise employees for their hard work, they notice.
There are, of course, some dos and don’ts for employee recognition. One of
the most effective, yet most often overlooked, employee retention strategies
is simply to increase and improve your praise and feedback initiatives.
Celebrating employees enthusiastically and publicly not only makes them
feel valued but can inspire others around them. If you can offer monetary
rewards for a job well done, too, then there’s even more incentive for your
employees to value you and their jobs.
However, don’t let praise and lack thereof be your only form of feedback.
Offering advice around areas of improvement in a fair and supportive
environment can also motivate employees and give them a sense of
progress within your business.
5. Offer a Clear Career Path
As humans, we need purpose and movement. In our careers, we want to feel
like we’re contributing to something worthwhile and moving forwards.
Even if you’re giving regular wage increases to your employees, they’re more
likely to job hop if they don’t feel like the organization is investing in their
professional growth. When considering how to retain employees, pay close
attention to an individual’s career path.
Some effective employee retention ideas include:
Additional training to help employees reach the next level
Regular target setting
Creating performance milestones
Providing internal workshops and seminars of interest
Internal hires and promotions
Open dialogue between management and employees around
progression plans.
Stop your employees from getting stagnant and your business will stay fresh,
too. Encouraging internal progression not only improves the quality of your
company, it’s also a highly effective retention strategy.
