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26 June, 2022
The most valuable assets of any organization are its employees. They are the driving forces behind the success of the organization in a competitive scenario. This suggests why every business leader must be vigilant to know the importance of top talent strolling out the doors. Where employees act as a liaison between the business and its clients, it's evident how they can make or break a business when it comes down to it.
Human assets, averse to physical assets like a grandiose office building, amazing systems, and remarkable technical equipment, can increase in value. An employee who gradually develops his/her skills and competencies turns out to be a more treasured resource than any of the fanciful business assets. An increasing number of executives are acknowledging that the quality of the workforce can be responsible for substantial variations in short-run ad long-run performances.
PAUSE AND PONDER...
Isn’t recruiting new workers far costlier than retaining existing ones? This is where a retention strategy to shore up employee turnover comes in handy. Effective employee retention is a methodical effort by the employers to create and foster an environment that promotes current employees to remain employed as a team, by having policies and practices in place that address their diverse needs. A strong retention strategy, therefore, becomes a powerful recruitment tool. It is best put to use to ameliorate employee engagement, prevent attrition and of course, reduce employee turnover.
BENEFITS OF AN EFFECTIVE RETENTION STRATEGY: From HRM’s Perspective
In a workplace where employees are unable to use their full potential and are not heard and valued, they are likely to leave because of stress and frustration. Such a crisis in employee retention is a staggering headache for business employers who want to keep A-players in place to achieve business objectives. Keeping retention strategy first among other goals can help you to hold on to the employees tight, other advantages include:
Lower turnover
Lower hiring costs
Improved motivation, productivity, and performance
Potent employee growth
Secure and healthy employee relationships
A pool of high-skilled workforce
Positive company culture
ORIENTATION AND ONBOARDING
The impact you leave on your employees once they join your organization decides if you win or lose in the long run. Perhaps the first 90 days are crucial for employee retention. Optimize your induction programs tailored to the new recruits' job roles and provide an interactive cum in-depth presentation of your company’s culture and expectations along with the understanding of their new job. Try pairing them with a ‘Buddy’ or a qualified mentor to accelerate their adjustment within the organization and even more to increase their morale and confidence.
Check out our orientation and induction blog to learn more on the burning topic!
COMPETITIVE SALARY AND COMPENSATION
Abraham Maslow' Hierarchy of needs theorizes that companies ought to first pay attention to an employee's basic needs, corresponding to job security, payment, and health benefits, then advance to larger aspirations, like his or her place within the company. Underpaid employees reflect absenteeism and lower productiveness than employees enjoying fair salary and financial security (which includes bonuses, health insurance, and other economic benefits: paid holidays, leave travel concession, etc.)
FLEXIBLE WORKING ARRANGEMENT
Remember, it is not always about the money. Nonmonetary factors that boost the work-life balance of employees are also quite necessary when it comes to having a loyal workforce. Many leading HR executives have an agile lookout for employee wellness by offering pliable working hours, telecommuting, and alternative work schedules. You can either opt for remote working or consider conditional flexibility so long as your work gets done on time. Keep an eye out to manage their workload and stress which can eventually lead to burnout and later to a drain of talent over time.
POSITIVE FEEDBACK
Reassess your feedback circuit. Lack of positive and regular feedback from upper management can sometimes serve as a reason for employee turnover. Employees need to provide valuable feedback to motivate employees and make them feel more responsible, confident and empowered. Constructive communication is probably an essential element to reaffirm to employees that their workplace contributions are having an impact. Execs and managers should also be willing to receive feedback to promote open communication.
FOSTER AN ENVIRONMENT OF GROWTH, ACCOUNTABILITY, AND TRUST
Treat your employees with respect. Have leaders not bosses. Remember that people don’t join your company as loyal employees, but their loyalty alleviates over time as they’re trusted, respected, and appreciated by you. Nurture your workforce to avoid infidelity and build a bond of trust with your employees. Support your subordinates in their rough-sledding by providing personal loans during financial emergencies, childcare services, counseling assistance, etc.
EMPLOYEE CAREER ADVANCEMENT TECHNIQUES
Formulate a laid-out path for how an employee may strive for career advancement with our company. Create a career pathway that encompasses employees’ career objectives, life goals, and skills for job enrichment. Career planning is a useful tool both companies and employees can apply to obtain mutual benefits. Valence, in Victor Vroom's Expectancy Theory, is the extent to which an employee's goals match the company's goals. The more aligned these are the higher the employee retention rate . Dedicated training and development programs also effectuate employee engagement and ensure a bright future for the employees within the organization.
APPRECIATION AND RECOGNITION OFFERINGS
It is not about managing retention. It is about managing people. A sobering 66% of employees complain about quitting their job if they felt unappreciated. In a Society for Human Resource Management survey, 68% of HR professionals said that recognition was important for retention, yet several organizations lack formal recognition programs. Companies must encourage managers to recognize their line subordinate's work. Create annual awards and appreciation initiatives like special bonuses or gift hampers. People want to work for organizations that recognize their talent and performance because an organization is like a second home to the employees.
CELEBRATE WINS. ACKNOWLEDGE EMPLOYEES.
A final tip for retaining employees this season is to boost positive organizational behavior. A behavior that fosters acknowledgment of notable milestones, no matter big or small. This not only acts as an encouragement for the employee whose appreciated but as works as an inspiration to other team members. Celebrate their achievements to help them feel seen and prosper in camaraderie.
FINAL THOUGHTS: You don't invariably got to pay more; you'll simply need to concentrate.
Simply put, employee retention matters. And so does the 3 R’s of employee retention: Respect, Recognition, Reward. Inculcate these key elements to strategize a proactive workforce and create a hard-to-leave workplace, by redefining your solutions to the attrition problem.
