Employee Retention: Why does it matter and how to improve it

When employees are constantly fleeing from businesses, it’s hard for any progress, let alone profits, to be made. Aside from being unable to support long lasting connections, short-lived teams create productivity and financial burdens that some businesses may not handle well, especially those that are already struggling in the job-market.

What is employee retention and why is it important?

A business that’s going to last needs employees. Without the right talent in place, your company can’t grow and execute its strategy. Without the right people in place, your company can’t attract other people that it’s going to need. Without the right people in place, your company can lose the culture that gives you an advantage over your competitors. A longstanding business knows and understands the importance of keeping employees and ensuring they stick around as looking for new staff and training them is a burden on time, money and resources.

It is important to track employee retention especially during uncertain times. Without a sure-fire strategy to hold on to committed and talented individuals, your company is vulnerable to the whims of the market. When employees stick around longer, you may begin to notice a positive impact across various areas of your company.

So how does one improve employee retention?

Good question, and I’m glad you asked. To make sure people stay, you’re going to need to embrace employee retention ideas and apply them in your company.

Remember, your employees are also humans. And instead of trying to make them apply these strategies, ask them questions that will in turn help them improve their work life.

As part of your employee retention strategy, here are some strategies you may want to consider:

1. Career Growth Opportunities Everyone likes learning new skills, right? Investing in your team members has been proven to be a great motivator. Not only does it highlight their career growth moving forward but also shows you are acknowledging the work that they’ve done in the past. When given opportunities to advance and develop their skills, employees are more engaged at work and productivity becomes more consistent. For this to work, it’s going to be a two-way street where employees get to learn and apply new skills, and employers get a more skilled and loyal workforce in return.
2. Communication and Feedback Nobody likes to sit at a desk having no idea what is required of them. By establishing expectations clearly, employees get to know what is expected of them. Without a clear grasp of their responsibilities, performance metrics can drop drastically which can lead to a frustrated workforce. This in turn leads to a drop in output and can even cause employees to find employment elsewhere. One key strategy to overcome this is by communicating with your employees. By keeping lines of communication open and well established you prevent much of the negativity or unproductive behavior often associated with disengaged employees. Remember, communication is key.
3. Recognition and Appreciation Employees give a large chunk of their daily lives to work for and enhance a company. Making sure that they feel valued is an essential part of the strategy and acknowledging their contributions and/or achievements regularly boost their morale which creates a sense of appreciation in the workplace.
4. Compensation and Benefits Everyone loves a job perk, or two. Employee benefits are a form of a compensation paid to employees on top of a salary. They come in many forms, yet they are part of the overall compensation package offered by the employer. To name a few, employee benefits can be a holiday entitlement, flexible scheduling, life insurance, gym memberships, sick leave, and many more. Be sure to offer them wisely.
5. Managerial Support When team members are given a variety of tasks and opportunities that make a real difference, they feel valued and heard. Moreover, training and supporting them to be effective leaders to provide guidance and mentorship to their teams is seen as an essential support from the management team.

Key Takeaways on Employee Retention & How to Improve it

Now that we know what employee retention is, maintaining a stable and successful organization is a critical aspect of the workforce. Retaining valuable talent not only ensures continuity but also reduces recruitment costs and creates a positive workplace culture.

To recap:

• Career Growth Opportunities
  • Create room for skill development and advancement to motivate employees to stay and grow within the organization.
• Recognition and Appreciation
  • Acknowledge achievements and contributions regularly to boost morale and foster a sense of appreciation.
• Compensation and Benefits
  • Offer competitive salary packages, performance-based incentives and benefits to attract and retain top talent.
• Managerial Support
  • Train and support managers to be effective leaders to be able to provide guidance and mentorship to their teams.
• Communication and Feedback
  • Maintain open communication and encourage regular feedback to address concerns. This will keep employees engaged.

In times of labour and skill shortages, much like we’re seeing now, retention becomes especially important. Because it is always going to be cheaper and easier to keep a great employee rather than replacing them.

For more tips and tricks about employee retention, or if you’re wanting to talk about the challenges you face with your workforce, contact Clarisse, our Workforce Development Officer at cdelacruz@brooks.ca.