Employers have a significant impact on an organisation’s success and loss. The talented, hardworking and quality employees are definitely a valuable asset to your organisation. Retaining the company’s best staff and providing permanent jobs will, in return, increase the organisation’s performance and future growth. Recruiting, hiring, and training a new employee can be time-consuming and costly. Therefore, it is essential to understand the reasons for employee turnover and how to implement a strategic plan to prevent it.
To find a solution, you have to find the root cause. The first step in implementing the strategic plan is understanding why people leave. Employees resign for many reasons – some retire, some leave because of work conflicts or for better pay, some for higher studies, and others get fired from the organisation. Here are some tips to reduce turnover and increase employee retention.
Promote a healthy work/life balance
Promoting a good work-life balance will help the employee’s overall health and well-being, reducing their work stress and giving a better outcome. One way is to offer a hybrid working mode. Working from home can reduce the stress of travelling and save time. It is also cost-effective. Families with children or employees who are elderly will significantly benefit from it. Since they are always welcome to work from the office, they stay in touch with their colleagues. Providing a flexible work schedule can be an excellent way to promote a healthy work-life balance.
Build a positive workspace culture
Creating a friendly atmosphere helps people bond with each other and build a positive workspace culture. It will make people less stressed and enable them to perform promptly and efficiently. Hard Work doesn’t mean stressful work. Encourage your employees to take breaks and interact with each other. It helps them relax, improve mental and physical health, and increase productivity. It would help if you promoted exercise and mindful eating for employees’ well-being. Organising annual tours, Game parties, movie nights, and group outings bonds employees with the company and each other. Respectful treatment for all staff, whether newcomers or established employees, should be given. Ensure people feel comfortable communicating openly, check in with them regularly, review their workloads and encourage them to take paid annual leave. Obtaining frequent feedback from them and taking into consideration of their opinions will make them feel valued. Suppose they have a good working environment where they can work and enjoy themselves at the same time; in that case, it is less likely for them to leave the organisation even for better pay.
Compensation and rewards
Employee retention in a company is highly influenced by compensation since a company that provides satisfactory compensation will make employees feel valued. Work appreciation is an important factor when it comes to job satisfaction. Expressing your gratitude for a job well done can motivate your employees and make them feel appreciated. It can be in the form of incentives or words of appreciation. You can send out announcements recognising individuals for their hard work. Stock options can be used as an incentive to give employees a stake in the company. In turn, this motivates them to not only stay but also work harder in order to increase their stock value.
Career development and progression
Introduce mentorship programs for the employees. Employees are inclined to leave if there is no space for learning, growth and development. While some people love to do one job indefinitely, others want the option to upskill their passion and progression. Improving people’s skills and careers will positively impact their outcomes, which the company will benefit from. But make sure to understand and manage their career expectations. Training for a new joiner is essential. The training you provide new employees will ensure that they quickly become fully functioning members of your team and will remain with you for the long term. Your long-term quality staff will not find it satisfactory to stay in the same designation forever. Promoting employees within the organisation rather than always recruiting from outside gives them the motivation to work better for future promotions.
Technologies & Resources
Technology has been rising and staying up to date with the latest tools and software eases the stress and effort expended. Highly time-consuming work can be done more easily and efficiently using the right tools. The outdated hardware and software make employees inefficient and bored. It drains their motivation, and they may look for a company providing better resources. Artificial intelligence in the modern workplace boosts employees’ feelings of recognition, appreciation, and support throughout their careers. Using artificial intelligence, leaders can leverage employee activity data when they clock in, make phone calls, and what their schedules dictate. This way, a company can reward punctual employees with bonuses and track timely punch-ins, especially for overnight workers who feel unnoticed and unappreciated. AI helps you identify if a worker is overworking or if their time should be more structured and thus helps in preventing the employee from leaving before the office morale declines. Companies can lower turnover rates and improve employee retention by implementing this strategy.