Employee retention is one of the biggest challenges for an organization. Retaining talented employees is all the more so. In a booming economy or in an industry flush with growth opportunities, employees are prone to jumping jobs. Talented employees need no such factors. They are very much sought after in the industry which makes them coveted and valued.
The need for retaining employees cannot be overstated:
- Employee turnover has a negative impact on the ROI, the organizational reputation and the business plans
- The cost of hiring new employees is much higher than retaining
- Employees staying on with organizations are truly motivated. Otherwise, they would not stay. A motivated employee is a highly productive one
- Employee retention is a sign that the morale of the organization is high.
Effective strategies for improving employee retention
Given the importance of retaining employees, it follows that organizations would want to devise effective strategies for improving employee retention. What are these? Are these strategies going to help organizations retain employees in the long run? Let us look at some of the effective strategies for improving employee retention:
Create the right working conditions
No-brainer, this. A three-year old knows that the means to retaining employees is in creating the right working conditions. But here is the catch: organizations that retain employees go that extra mile in creating conditions that make them feel like working for the company. In addition to the usual benefits such as pay, benefits and other perks, effective strategies for improving employee retention include paying attention to the emotional needs of the employees. How about offering a mother the opportunity to work from home even if it could cause a small inconvenience to the team? Steps like this are sure to make the employee not only stay with the organization, but also be a grateful one at that.
Make them involved
Another of the effective strategies for improving employee retention is in making employees engaged with the organization. Employee engagement is not a tool, but a weapon in employee retention. When do employees become engaged ones? Only when they feel they are part of the organization’s decision-making process, right? Not all employees can be pulled into decision-making engagement, but for those who are not at that cadre, other ways of engagement can be devised, like getting their feedback or opinion about important decisions, which will make them feel important and treasured.
There is no substitute for honesty. The managements in many organizations keep things to themselves. While this may be necessary at times in some situations, when it comes to core organizational matters, there is no substitute for honesty. Honesty counts as one of the effective strategies for improving employee retention because when employees feel that the management is not opaque and is not holding back important things from them, it endears them to the organization.
Recognize and appreciate
Recognition and appreciation are among the most elementary of human needs. The employee who receives these from the organization is sure to reward it back with her loyalty. Managements should do these naturally and sincerely and never with an ulterior motive. Sincere recognition and appreciation of good work is a sure motivator and a major one among the effective strategies for improving employee retention.
Create opportunities to learn and to teach what they learn
Learning on the job is one of the true requirements for any employee in an organization. The more one learns, the more she grows. The more she gets the feeling that the organization is making efforts to augment her desire for learning, the more she stays connected with the organization. A variant of this strategy is to encourage employees to share this learning with others in the organization, which will make them feel more respected and responsible.
Make them feel like business partners
The highest form of employee engagement is not making employees feel they are part of the organization as employees, but as partners. The employee who shares the vision of the management for the organization feels it is her own organization she is working for. For this to happen, the employee and the employer should be on the same page and on the same wavelength. They should have the same vision for the organization and know what they can do to help it realize this. It is only when employees are made to feel that they are part of the organization’s core that they feel they are partners in progress. This should rate as the most effective of strategies for improving employee retention.