If you have worked in the business world for even a short while, then you will have likely heard the statistic that it costs five times more to hire a new employee than it does to retain an existing member of staff. Hiring new staff can be costly, time-consuming, and disruptive. Understanding how to increase employee retention rates helps businesses to maintain optimal efficiency rates at all times.
Track Employee Engagement
Employee engagement is a hugely important business metric as it demonstrates the relationships that employees have with the organization they are working for and the work they are doing. Engaged employees work harder, as they enjoy their work and have a meaningful relationship with their employing company. Whereas disengaged employees might be apathetic or even dislike their work and their employer.
Inpulse.com describes how tracking employee engagement can provide you with access to data-backed insights relating to employee engagement rates, behaviors, and performance. This can help you to better tailor your priorities and task allocation to decrease employee turnover.
Provide Regular Feedback
Showing appreciation to all members of staff is hugely important. In fact, studies have found that 79% of workers would consider quitting if they were not being appreciated at work. Providing regular feedback sessions is a great opportunity to provide employees with the feedback they need to feel appreciated. Using a 360 feedback software can help you gather feedback from multiple sources, including peers and managers, which can provide a well-rounded perspective on an employee’s performance
Not only is feedback a great opportunity to show appreciation for the work your staff are doing but it is also useful for employee development. Constructive criticism during feedback sessions helps employees better understand how to develop in their current role. You can also use feedback sessions as an opportunity to contextualize an employee’s work so they understand how they’re making a difference within the organization’s broader aims.
Offer Flexible Working Options
Recently, many people have found themselves working from home for the first time. While some people prefer office work, many people wish to continue working remotely, at least part-time. Offering staff flexible working options, in terms of where they work and the hours they work can be hugely beneficial. This is because you can increase employee retention by catering to employee’s personal preferences. As remote working can lead to a huge increase in productivity, offering flexible working options can increase both retention and productivity rates.
Offer a Competitive Salary
Even if you are offering your staff a number of different benefits, if you are not paying them a competitive salary then you will likely lose workers. Studies have found that the desire for higher pay is one of the leading reasons why people quit their jobs.
You should always be aware of what a competitive salary is for the work that your staff members are doing. Offering a competitive salary does not only apply when you are hiring new members of staff. If employees have been with you for some time, you should take a look at how much they are being paid and consider offering them a raise to stay competitive.