Recruiting, onboarding and training is an expensive endeavor for all those involved. Some studies predict that the cost of employee turnover can be as high as twice the annual salary of the employee, depending on their role. When you lose an employee, you lose their knowledge and talent, plus your organizations’ productivity can suffer from the loss. So how do you reduce turnover? By developing and implementing an employee retention strategy.
Building A Retention Strategy
An employee retention strategy will never entirely stop employees from leaving your company as a certain percentage of turnover should always be expected. What an employee retention strategy can do is prevent, or control, employees from leaving in an untimely manor due to disengagement, monotony, or out of sheer frustration.
A good retention strategy includes all aspects of your hiring process, your compensation plan, and your engagement strategy which includes your employee recognition programs and encouraging better manager-employee relationships.
Here are a few areas to look at when building your retention strategy:
Recruiting: Many companies treat their retention strategy as an afterthought to recruiting, but thoughtful hiring will prevent resentments about the job from starting in the first place. Qualifying candidates on more than job experience alone can better ensure the right candidate is hired. Career paths and development for long-term growth with the company is also a factor. Many candidates will leave a position once they realize there are no options for advancement.
Compensation: It’s true that compensation is a factor in retention, but it is also important to note that it is not the most important one. A good compensation strategy includes everything your company offers as payment in a total rewards package: benefits, bonuses, rewards, career advancement, and training opportunities. Being paid in line with what is competitive with your industry standard is also an important influence in employee retention.
Engagement: Ultimately employees stay at a job they enjoy. Work environment contributes to this, but so does company culture. Consider cultivating a culture of inclusiveness, transparency, and offering opportunities to build relationships amongst employees. Good onboarding and training practices can also encourage engagement. Employees who don’t have a good understanding of their responsibilities, or job expectations, can easily become frustrated and confused and will ultimately disengage with their duties and leave.
Recognition: Recognition programs are more important than ever. The millennial workforce is particularly sensitive to feeling invisible. Build a culture of “Thank You” and appreciation for your workforce while giving considerate thought to providing ongoing feedback. Show employees how to contribute to the overall goals of your organization and communicate that they are part of a bigger whole. This big-picture perspective can increase retention of your employees when they realize the value their part has on company success.
Management: Management plays a big role in retention. Managers should emphasize acknowledgement, and offer rewards to employees for a job well done. This too aligns with a good recognition strategy, but more importantly, it’s about ensuring managers are well within reach of your workforce. Balance between visibility and mentorship opportunities will ensure good manager-employee relationships are developed. Steer clear of micromanagement. Telling employees what to do and when prevents them from engaging with their role. This often breeds contention and can lower overall workplace morale.
Promoting Your Retention Strategy
It’s important to disclose your intentions to your management team and employees. Successfully rolling out any new employee retention initiative takes good communication as to why the program is being implemented and what employees can do to participate. Awareness campaigns and training can spread the word of your new strategy. Employees need to be aware of the benefits for it to make the biggest impact.
Internal marketing can only go so far, it’s just as important to measure the impact these strategies are having on your company. Disclosing these statistics to your employees to reinforce the importance of these strategies and can become the catalyst for a good reputation. Never underestimate the value word-of-mouth has on recruiting and retention. Simply giving an employee something to boast about can be the very reason qualified candidates want to work with you, or good employees want to stay.
Qarrot to the rescue!
A good rewards and recognition program should work with your retention strategy aligning company culture and workplace engagement. With Qarrot, reward points can be earned for a completion of tasks, meeting goals or simply be awarded for a job well done. These points can be redeemed for gift cards incentivizing employees with the promise of additional compensation.
Employee engagement is encouraged with performance and opportunities for meeting objectives, aligning your company goal strategy with tangible milestones employees can readily meet.
Managers play a huge role in rewarding employees as well as offering feedback to their employees over our social feed. Coworkers can instantly see these acknowledgements and offer additional encouragement.
Qarrot is fun, easy to implement and cost-effective for companies to use. Plus, it’ll give your employees something special to talk about! So what are you waiting for? To learn more about Qarrot and how it can work with your overall employee retention strategy, book a demo!