It’s the lifecycle of an organization for employees to come and go, however, according to multiple studies conducted to identify an ideal employee retention rate, ten per cent is an acceptable turnover rate.
If you as a Human Resource (HR)professional, or an organization as a whole, experience an employee retention rate of more than ten per cent, this article is for you.
This piece will throw light on the best strategies that you can infuse into your existing employee retention program.
Why employee retention program is important for any organization?
As commonly defined, an employee retention program is an extra effort made by the HR department to encourage staff members to be attached to the organization for a longer tenure.
Unable to do so will directly hamper the returns on investment, and the time, effort, and costs that you put behind hiring and training the employees.
What are the best employee retention strategies that you should implement?
The Society for Human Resource Management (SHRM) reported these five factors that lead to job satisfaction, which, in turn, will lead to better retention rates for a start-up, mid-sized organization, or even the big players.
- Respectful treatment of all employees at all levels
- Trust between employees and senior management
- Job security
- Opportunities to use their skills and abilities at work.
Let’s elaborate on how?
1. Respectful treatment of all employees at all levels
The better you treat your employees, the more likely they will stick to your organization. Irrespective of the team size, managing employees with the same respect, as you offer the stakeholders of the company will make them feel themselves an integral part of the organization. It is also important to encourage all members of the organization to treat one another with respect to ensure a professional and respectful work environment.
2. Compensation & Pay
Next, is the compensation that an employee is offered at the time of joining. An employee will not like to be stuck with the same salary for more than a year. Therefore, apart from the yearly salary increment, a six-monthly bonus scheme or even appraisals will boost the morale of employees allowing them to freely forecast and implement long-term investment plans (e.g. applying for house loans, children’s education loans) dependent on the compensation they earn from your organization.
3. Trust between employees and senior management
The modern workforce is looking for more transparency, whether considering their daily tasks or growth opportunities. Just being highlighted for errors and having no appreciation for good work will make an employee lose faith in the organization. Therefore, encouraging senior managers to build trust among their employees through regular appreciation and rewards ceremonies will help you as HR improve employee satisfaction and retention rates with time.
4. Job security
Another important factor for employee retention is job security. For some increase in salary package on a recurring basis is job security, while for others an organization that offers flexibility (remote/hybrid) to ensure the work-life balance is job security. A combination of both will encourage more and more employees to stick to your organization for a longer tenure.
5. Opportunities to use their skills and abilities at work
Last, yet not least, is to allow employees to perform based on the knowledge and skills that they have earned during their academic and professional years. The modern workforce is overwhelmed by organizations that are open to implementing their suggestions and not just receiving requirements from their seniors. In addition, offering employees an opportunity to increase their skills but opting for a professional course they are planning for their future at the cost of the company’s expense will get them motivated to stick and grow with your organization.
Another benefit of this strategy for an organization is the increased chances of good word-of-mouth being shared by satisfied employees, in their network.
The five employee retention strategies outlined above are the best ways to help boost employee job satisfaction. However, make sure to re-evaluate your efforts regularly.
An employee who decides to leave an organization will do so, however, implementing the above strategies will help you make their decisions a little tougher.