When you consider the costs of employee turnover, the importance of employee retention becomes clear. Turnover costs typically far exceed the departing employee’s salary, not to mention the soft costs like lowered productivity, decreased engagement, training costs, and cultural impact. It can be detrimental to an organization. So why do employees leave? You will probably hear your departing employee cite one of the following reasons for leaving their job:
- Salary and benefits
- Overworked and unsupported
- No career advancement
- Need better work/life balance
- Lack of recognition
- Discontent with company culture
- A desire to make a change
Yes, job-hopping is undoubtedly on the rise. However, your company can take measures to lessen the exodus of your employees. Here are ways to improve retention.
Five Tips to Improve Employee Retention
It is vital that you set every employee up for success from day one. For success, an onboarding process should address company culture as well as the job details. This first move in the process is crucial, so do not skip it. This training and support that you provide from the first day can set the tone for the employee’s entire tenure with your organization.
If you want an employee to continue with your company, you will have to pay them with competitive compensation. You must also evaluate and adjust salaries regularly. Understandably, many businesses cannot afford to increase wages at the moment. Consider other types of payment such as bonuses. You might also consider improving existing benefits such as health care and retirement.
Flexible Work Arrangements
A survey indicates that 1 in 3 professionals working from home would seek a new job if returning to their office full-time is required. The pandemic sent many workers home to work remotely. Now, many of these employees wish to continue working from the comfort of their homes. Your organization must prepare for this fact and consider flexible work arrangements to keep these valuable employees.
If you expect your staff to be accessible around the clock, stop that type of thinking. Work/life balance is key to job fulfillment, not to mention keeping employees. Your employees want you to know that they have lives outside of your organization. So encourage your team to set boundaries and take their vacation time. If they are working late nights finishing up projects, give them extra time off as compensation.
A significant component to add to your onboarding process is pairing a new employee with a mentor. Mentorship is particularly vital for new employees who are working remotely. Mentors can help you welcome new employees, offer guidance, and serve as a sounding board. New employees benefit from the mentor’s wisdom, and mentors receive a unique viewpoint from the employee. Do not limit mentorship to new hires only. Your current employees can also benefit from this type of relationship.
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