5 Effective Employee Retention Strategies

The pandemic taught us many lessons. One of these lessons was to never underestimate life itself. And asking people to work remotely may have been one of the best employee retention strategies that businesses learnt too. In fact, asking people to work remotely allowed them to focus on their work and still be at home with their loved ones. Studies show that this increased productivity and increased employee engagement levels too.

But what businesses were not prepared for was the quiet quitting or the mass resignation after the pandemic ended. What such resignations showed us was that the employee mindset had changed. People were now realizing the benefits of remote and other flexible working arrangements that helped them during the pandemic.

And they were not willing to forego those benefits just yet. This could be one of the reasons. The developments in technology and AI, leading to newer skill demands and growth opportunities could be the other reason. Let us now look at some of the reasons for why employees are leaving companies, especially more so post the pandemic.

Why Are More Employees Leaving Companies?

Here are some of the reasons why employees want to leave companies. While some of the reasons at times are beyond the organization’s control, others may be. We hope this list justifies why we need employee retention strategies to bring about greater productivity and improve the employer branding for all businesses.

1. Inadequate salary
2. Lack of sufficient perks or benefits
3. Having to work overtime without pay
4. No career growth or value-add to resume
5. Need for better work-life balance
6. Lack of recognition at the workplace
7. Management not doing enough for employee engagement
8. Concerns about company’s future
9. Non-approval of company culture
10. Competitors far better as employers

The important thing for employers now is not to worry about the reasons for the exodus but to improve the employer branding and give valid reasons for why people would want to work with them.

We put together some employee retention strategies that will work for anyone who is trying to retain their employees for a long period or wishes to create a workforce that is more productive, happy, efficient, and less erratic. These employee retention strategies will help workforces regardless of the size of the business.

5 Top and Effective Employee Retention Strategies

1. Competitive Pay

It is not right to say that people work only for a salary. There are other aspects of the job too that they find persuasive. But for many, if not all, the deciding factor would be a poor salary or even one that does not meet expectations. A competitive salary, on the other hand, where the benefits and reimbursements are paid on time, can greatly improve an employee’s experience in the workplace. This is because life outside of work remains unaffected, as bills are paid on time and enough money is spared for day-to-day expenses and even some savings. If competitors do not offer an even better salary, you can rest assured that this remains a good reason why the employee will continue in your company.

2. Flexible Work Arrangements

Work can be remote or from the office. The effectiveness of such work depends on the kind of role that it is being done for. Allowing employees to work in a hybrid mode (a mix of both) could be desirable. Or you could let half your workforce work from the office and the other half go fully remote. But flexible work arrangements can prove to be a lifesaver for a lot of people. Before you commit to flexible working, do consider whether it is feasible for you or not. But if you do get flexible work arrangements right, then employees are bound to stay, and this becomes a good talent retention strategy.

3. Opportunities for Learning and Development

This is one of the most important of all the employee retention strategies mentioned here. Are there any opportunities you can provide in professional development, by way of training or mentoring, for your employees? In a study by PwC, as many as 67% of employees agree that the reason why they will switch jobs is that the company provides no opportunities for professional development through training. If you run a successful training program and give opportunities for everyone to upskill, and without bias, then you would have found a good way to retain your employees for a lot longer.

4. Build a Diverse and Inclusive Workplace

A diverse and inclusive workplace is not only productive but creative and innovative too. In fact, diverse workspaces are likely to be 1.7 times more innovative than others. A diverse workplace will also be more welcoming of feedback, address concerns of diverse groups of employees and respect every employee and his/her contribution at work without any bias. All these factors will greatly contribute to improving employee experience so much that the employees will want to continue working with you and growing their careers and your business at the same time.

5. Employee Recognition and Appreciation

There are many ways to recognize your employees, it could be a pat in the back, a bonus after a spectacular quarter in the office or an appraisal announcement. Employees do not always need the red carpet being thrown down for them, an award to raise, or a chance to speak about their accomplishments, though that can help too. What can be avoided if you really want to retain your best employees is to avoid a gamification system, where employees are awarded points on a platform, and everyone knows how everyone is doing. This is not generally recommended. Otherwise, rewards and recognition are a great way to encourage employees to continue to work with you.

Employee Retention Begins with Great Recruitment

To retain employees without any problems, you will first have to recruit great people. When you have people who are smarter than you and can manage things well, others learn from them too, and it builds a culture of collaboration and learning, which employees love. They evolve with time and gain confidence, becoming smarter and more productive and your business grows with them. And it all started with hiring great people.

Alp Consulting, an RPO services company with nearly 25 years of recruitment experience should be your trusted partner for talent retention. Talk to us today!