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The 8 Main Employee Retention Strategies to Implement ASAP

The 8 Main Employee Retention Strategies to Implement ASAP

If you’re wondering how to improve employee retention, here are the most effective strategies to help you do that.

The 8 Main Employee Retention Strategies to Implement ASAP

Companies with a low employee retention rate face a big problem. High employee turnover rates can cost these companies a lot in terms of constant hiring and training of new employees, disruptions in productivity, and a tarnished company image.  

If your employees leave quickly, it has something to do with your work culture and environment. The equation is simple: happy and engaged employees stay longer with the company, while unengaged and unhappy ones quit their jobs faster. 

So, if your employee retention leaves much to be desired, you must take proactive steps to improve long-term employee satisfaction and engagement. 

In this article, we'll discuss the 8 best employee retention strategies to help you figure out how to increase employee retention and engagement effectively and in the long term.

The 8 Most Important Employee Retention Strategies

If you’re wondering how to improve employee retention, here are the most effective strategies to help you do that. 

We’ve selected the most important employee retention strategies that are the foundation of workplace well-being. 

The most important employee retention strategies

Offer Competitive Compensation

Nowadays, employees care more about their well-being and satisfaction at work than money. But this doesn’t mean money isn’t an important factor in employee satisfaction and engagement at work. 

If employees feel that they’re being underpaid and undervalued for their hard work, they’re much more likely to lose motivation and either “quiet quit” or leave their job altogether. In a study by the Pew Research Center, 63% of the surveyed employees cited low pay as the number 1 reason they quit their jobs. 

One of the fundamental elements of a great workplace is offering compensation adequate to your employees’ hard work and contributions. 

💡 If you want your employees to stay with you longer, you must offer a competitive salary that’s either in line or above the market value, occasional perks, and bonuses for great achievements and performance.

Allow Flexible Work Hours & Hybrid Work

Flexibility at work has become one of the top priorities for employees nowadays. McKinsey’s American Opportunity Survey found that 87% of employees would choose to work flexibly when given a chance to do so. 

That makes sense, given that nowadays, people prioritize their personal lives over their work lives. They want more flexibility to drop their kids at school before going to work or simply achieve a healthy work-life balance. 

💡 If your company doesn't offer flexible hours or the option to work from home, employees may start looking for jobs that do.

Balance the Workload 

Promoting a healthy work-life balance is an important aspect of employee well-being and satisfaction. 

When employees have a huge workload that they aren’t able to manage effectively, they will start losing motivation and feel frustrated, which can easily lead to burnout. 

A report by the APA found that employees who are burned out are 2.6 times more likely to look for another job and 63% more likely to take sick days. 

💡 If you don’t want your employees to feel burned out and start looking for another job, you must balance their workload and give them space to recharge and relax.

Provide Opportunities for Growth 

Employees who feel like they’ve hit a ceiling in their current position will naturally want to move on. If they enjoy working with the company, they’ll likely seek a promotion or to be assigned a different role. If that doesn’t happen, they’ll start looking for another job. 

The report by the Pew Research Center we’ve previously mentioned found that 63% of employees quit their jobs because there were no opportunities for advancement. 

This shows that employees care about their career growth and are less likely to settle for a position that doesn’t provide growth opportunities. 

💡 If you want your employees to stay with your company, you must provide them with growth opportunities. You can do so by organizing skill training and learning programs or creating an internal innovation program.

Improve Your Company Culture 

Your employee retention rate has a lot to do with your company culture. If your company culture is non-existent or toxic, employee well-being and satisfaction will be affected. 

A study by the MIT Sloan Management Review found that a toxic company culture is over 10 times more likely to contribute to employee attrition than compensation.

On the other hand, a positive and inclusive company culture that promotes openness, innovation, and well-being can encourage employee engagement and satisfaction and, therefore, lead to increased employee retention. 

💡 While improving your company culture isn’t a one-off action that you can implement for immediate results but rather a long-term strategy, it can pay off in the form of improved employee morale, productivity, and loyalty.

Hire Employees Who Share Your Values

Employees are seeking more purpose and meaning at work. Studies show that 90% of employees would rather earn less money if it meant doing more meaningful work. And when they feel they’re doing meaningful work, they’re more likely to feel engaged and motivated. 

For instance, the outdoor clothing company Patagonia makes a point of hiring employees who already share its values rather than trying to instill their philosophy into their employees. 

This results in a workforce that is more motivated to work there because they’re passionate about what the company stands for. 

💡 Finding the right people that align with your company values and way of doing things can lead to a lower turnover rate over time.

Improve Relationships at Work 

Healthy relationships at work - whether it’s employee-to-employee or manager-to-employee - are critical to employee well-being and retention. When employees feel a sense of belonging and connection, they’re more likely to stay in the company. 

For employees who have created great relationships with their colleagues and managers, leaving their jobs would also mean leaving the community, which can make them reluctant to quit. 

💡 Strong relationships encourage people to stay because they fear they won't feel this sense of belonging elsewhere if they leave.

To reinforce relationships between employees and leaders, emphasize teamwork, and create chances for collaboration across teams and departments. 

Also, train your managers to be effective and supportive managers who know how to form great relationships with their teams. 

Give Recognition

In a study by Achievers, 69% of surveyed employees said that recognition and rewards keep them motivated to stay with their current employers. The same survey found that 36% of employees quit their jobs due to a lack of recognition. 

When employees don’t feel heard and recognized for their hard work and contributions, they’re more likely to stop caring about the company’s success and growth. 

This inevitably leads to decreased productivity and performance and a tendency to “quiet quit”  - putting in just enough effort to fulfill their obligation without going the extra mile. 

On the other hand, when employees feel recognized for their efforts, they are more engaged and motivated to contribute positively to the company's goals and success. 

💡 To keep your employees motivated, implement recognition and reward programs. You can provide incentives for meeting specific goals or use employee recognition software to gamify the experience.

How to Improve Employee Retention Fast

Sometimes, you might notice an urgent problem with employee retention that needs to be remediated quickly. In that case, there’s no time to increase retention by improving overall employee engagement. 

That’s a long-term strategy that can’t really be rushed into a short timeframe. 

Here’s how to improve employee retention fast. 

How to Improve Employee Retention Fast

1. Analyze your competitors’ job offers

Look at what other companies in your industry offer in their job ads. See what benefits they provide to their candidates that you don't, and think about how you can add similar perks based on what works for your company. 

This will help you create better job offers to stay competitive and attract top talent faster. 

2. Be transparent in your communication

Keep your employees informed and reassured about the company's future to give them a sense of stability in their work environment. 

Be open about any challenges the company is facing and discuss with your employees how you plan to overcome them and how they can contribute. 

Avoid leaving them in the dark, as it may lead to a loss of direction and decreased employee morale. 

3. Collect employee feedback

Employees who feel heard are more likely to stay with the company. Encouraging them to share their feedback openly will help them feel like you care about their opinions and concerns. 

What’s more, getting feedback directly from your employees will help you better understand what demotivates them and what changes they’d like to see. 

Keep in mind that collecting employee feedback isn't about focusing on the negatives but rather gathering insights that are forward-thinking and future-oriented. 

💡 You can effectively collect employee feedback with an idea collection tool like Ideanote, which will give your employees a platform to share their ideas and actively participate in the company’s future.

4. Don’t wait to make the necessary changes

If you're facing an employee retention problem, it's a clear sign that something needs to change. Whether you already know what needs improvement or you need to find the root cause of the problem, the key to solving it is to act quickly. 

Delaying things will only worsen the problem, so be proactive instead of reactive and take action as soon as possible.

Still, the best thing you can do is never to let your employee retention become an urgent issue. Keep your employee retention strong at all times and put long-term strategies in place to avoid any future issues.

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