10 Employee Retention Strategies to Improve Your Company's Performance
Five years into the U.S. Economic Recovery, talented employees once again hold the cards when it comes to choosing where to work. With employee bounce rates reaching their highest levels since 2008, companies are in a vulnerable position that may leave them understaffed and falling short of their goals.
Why is Employee Retention so Important?
The reduced pool of qualified talent combined with increased employee acquisition and turnover costs have an exceptional adverse impact on your bottom line. The loss of large numbers of talented employees will have a long-lasting negative effect on your profits and the cumulative performance of your employees.
Employee retention is better for everyone - employers and employees - because high retention rates equate to shared goals, improved performance, and competitive advantage. So why do top employees quit? The two most common factors are lack of job satisfaction and more appealing career options.
How to Insure Your Talent Acquisition Investment
The days of retaining employees by dangling a cookie filled with a good salary, paid time off, medical benefits and a 401k are over. Don't get me wrong - talented employees expect all of the above - but they want MORE. In order to retain your talent, commit to an employee retention program - TODAY.
10 Tactics You Need to Include in Your Employee Retention Strategy
What matters more than than money to the knowledge workforce?
- Recognition: A pat on the back goes a long way. Give praise for a job well done. How about an improved job title? Appreciation is a fantastic and free employee motivational tool.
- Break the Sandbox: Encourage employees to use their imagination and move outside of the box.
- Keep Things Spicy: Forget the humdrum - push your employees to reach their full potential with a challenging variety of tasks. Variety is indeed the spice that turns a bored employee into an engaged employee.
- Be Transparent: Keep job descriptions accurate and up-to-date so employees have a clear understanding of what is expected in their current role and have direction on areas to build skills as they aspire to transition into other roles.
- The Magnetism of Employee Empowerment: Let your employees plan, perform, and evaluate their own tasks to lock them in for the long haul.
- Do Some Yoga: When it comes to paid time off, be flexible to improve employee work-life balance. Your employees will be loyal for it.
- There's No "I" in Team: A teamwork culture increases employee productivity and retention.
- Communicate: Set realistic performance standards and 360-degree performance reviews.
- Lifelong Learning: Employees stay motivated when they have the opportunity to keep learning. Employee development initiatives can include formal company training, certification incentives, and tuition reimbursement. A learning organization will be more agile during imminent times of change.
- Perks: From employee stock options, quarterly performance bonuses, and health club reimbursements to happy house and free lunch - employees appreciate fringe benefits.
When designing your employee retention program, keep in mind what motivates employees will typically vary dependent upon their position within your organization.
Top, Middle, Bottom
- High-level employees are motivated by praise and development opportunities.
- Mid-level employees are motivated by opportunities to learn and like open door policies with their direct managers.
- Low-level managers are motivated by competitive salaries and perks.
- Entry-level employees are motivated by bonuses, performance-based raises, and pay for working additional hours.
In order to retain talent, employees must feel like their goals are in line with the company that they commit to. A comprehensive employee retention program will give your company the highest ROI because motivated, engaged, and loyal employees are more likely to reach their fullest potential which will naturally increase your organization's success. Check out Philly.com's top workplace list for more employee retention inspiration.
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