From small companies to large corporations, many organizations have been impacted by The Great Resignation. According to the U.S. Bureau of Labor Statistics, roughly 47 million people resigned from their jobs in 2021, contributing to 10.9 million job openings by the end of the year. This has resulted in a highly competitive corporate market where companies are at war to attract and retain skilled candidates.
Employee turnover is expensive, so companies are working hard to retain their workers. According to Work Institute’s 2017 retention report, replacing an employee can cost around one-third of their annual salary. In addition to these high costs, high employee turnover also impacts workplace engagement and causes other disruptions. Also, when employees leave, the additional workload on existing workers causes burnout and impacts productivity.
Considering all these factors, employers are looking for effective employee retention methods to lower turnover and retain a loyal, skilled workforce.
Factors That Attract and Retain Employees
It’s simple: The bottom line of any employee recruitment and retention strategy is to offer what the workforce needs. A Gallup study revealed the factors that employees consider while choosing their employers or may influence them in quitting their jobs, which include:
- Higher salary.
- Work-life balance.
- Occupational satisfaction.
- Job security.
- A diverse and inclusive workforce.
- A healthy and positive workplace culture.
Apart from pitching their employee value proposition (EVP), employers must take some other adequate measures to keep employees invested in the company and happy with their jobs. Here are a few pointers to consider:
1. Reassess compensation and benefits packages
With the corporate market struggling with employment and unemployment issues, compensation and employee benefits packages can be essential pieces of the retention strategy. Although studies show that there are factors more important than the pay scale, it is obvious that underpaid employees are more likely to quit their jobs. According to the 2021 Gallup study, almost 64% of employees said higher income was a crucial factor in choosing or quitting their jobs. Employers must reassess their industry compensation standards and change the employee pay packages. Regular salary increases can make employees feel valued and serve as a strategy to reward the top performers, thus motivating others to follow suit.
The all-important conversations about the pay scale, benefits packages and other bonuses must be carried out transparently during the interviews and onboarding sessions. When employees are included in the pay package discussion from the beginning, they will be more satisfied and it is less likely to become a source of contention down the road.
2. Review your employee well-being solutions
Employee well-being has become a crucial and integral part of most workplace policies, especially since the pandemic. Employers and employees must understand that well-being is beyond just physical health and wellness. With flexible working schedules and holistic well-being programs gaining traction, employers must make sure their employee wellness solutions are redefined to ensure they thrive and avoid burnout. In addition to focusing on holistic well-being programs, the employee wellness solutions must also ensure work-life balance. Even the workers who have not experienced burnout are realizing the importance of flexible work schedules for improved overall health and well-being.
3. Recognition and rewards
When hard work is appreciated, it is bound to be enhanced exponentially. Likewise, when employees are recognized and appreciated for their efforts, they will be better at their jobs. Small tokens of appreciation in group meetings or as a part of recognition programs can boost employee morale and confidence, resulting in better engagement and productivity. Depending on the budget, companies can implement incentive management programs to reward their workforce’s accomplishments. Be it completing the wellness challenges of the employee well-being programs or completing tasks within deadlines, employers can choose the right incentives to recognize and reward employee achievements. Regular recognition and incentive programs boost employee loyalty and engagement, thus reducing turnover rates and increasing productivity.
While it is inevitable that some workers will leave the company, employers make that difficult to do when they implement the right employee engagement and retention strategies. When employees feel valued, supported and cared for at their workplace, they are more inclined to stay there.