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9 ways to improve retention of employees

Jul 14, 2022

Building a team full of solid, committed employees is not an easy feat. Moving individuals through your recruiting process, onboarding, and hiring process is time-consuming, hard expensive job. Actually, Glassdoor estimates that it cost the average American employer $4000 and more than a month to recruit an employee who is new.
But, it's only part of the work required to build an outstanding team. It's the other part of managingthem an organization's best employees that is much more difficult to define and demands the efforts from multiple departments in an organization.

In in the United States experiencing record levels of resignations, a declining stock market, and rising levels of self-employment, retaining your best employees can be a daunting task. However, just because retention is getting harder does not mean that it's impossible.

We chatted with 's people operation team to discuss the nine strategies organizations can use to increase retention of employees and build an active and lasting relationships with top talent.

In this article

What exactly is retention of employees?

In many companies, turnover is now a real epidemic, with "quit rate" at a 20-year high in 2021. And while many employees go onto exciting new opportunities after quitting, companies that lose them are forced to spend a lot of cost, time and time in finding successors.

With the cost of employee turnover being so high, it's little wonder employers are now focusing their efforts on retention, which is the efforts collectively to keep the talent of its employees. Employee retention tactics (which we'll dive into in the next section!) can include everything from increasing compensation to revamping the onboarding process.

To measure how effective your employee retention efforts are, you can track your employee retention rate, which is the proportion of employees who stay with your organization over a certain amount of time (usually approximately a year).

What is the best way to determine employee retention rate

Employee retention rate = (Number of employees who remained employed during the measurement period / Number of employees employed in the beginning of the measuring period) * 100

Once you calculate the rate of retention for your employees You'll need to evaluate it to the average retention rate of your particular industry, such as tech or hospitality. As per the Bureau of Labor Statistics, the average retention rate in 2021 was 42.7 percent, but the number can vary dramatically based on the specific industry you zoom in on.

Regardless of your industry However, the experts believe aiming high is the name of the game when it comes to retention rates for employees while being flexible enough to allow for fluctuations on the global context.

"Most firms, in order to appear active, are looking to get beyond 90 percent" states Candace Williams, Head of Diversity, Equity, and Inclusion at . "At  our current level, we're little bit lower than 90 percent. However, that fluctuates and flows and is dependent on the department or the business process we're discussing. The current economy in today, and in the context of COVID, companies have to recognize that information is constantly changing."

Understanding the current context will not just help you understand fluctuating turnover rates however, it could aid in determining which areas to target the efforts of retention. For 2022, there are plenty of different factors to consider.

The (increased) problem of keeping talents in 2022.

If the retention of your employees fell last year, to start off, know you're not alone. Based on the findings of a WTW survey of a sample of organizations who reported difficulties with retention of employees increased fourfold in 2021. If you've not fixed the leaks in your leaky vessel then now is the perfect time to do so, since Gartner says that retention of employees will continue to be a problem well into 2022.

"New employee expectations, and the possibility of hybrid agreements, will continue to fuel the rising rate of attrition" Piers Hudson, senior director of Gartner HR, told Gartner. "An company with an employee turnover rate of 20 percent before the outbreak may face an employee turnover rate of as much at 24 percent by 2022 and the future. For example, a workforce of 25,000 employees would need to prepare for an additional 1,000 departures on their own."

A variety of factors are now beginning to determine "The Great Resignation," according to what it is now being referred to by the media as the current churn of employees. The pandemic that struck in March 2020 was certainly an element: with kids being at home all day and caring requirements increasing dramatically, COVID-19 forced numerous women to leave working. The laid-off workers also took to self-employment or freelance work in droves during the onset of the disease. When offices reopened in the spring, many of them have returned to work after having accumulated working hours during their workdays working remotely -- quit rather than returning back to their full-time office jobs.

The initial increase in turnover due to these factors also prompted numerous companies to raise their wages, increase benefits prioritizing diversity, equity, as well as inclusion (DEI) as a way to lure new hires. The increased competition among companies led to even more job-hopping since employees sought better working conditions. Similar to a rising tide these shifts have forced all businesses to invest in employee retention.

"I like to change "'the Great Resignation' in to  the Great Retention'" says Williams. "Because people are leaving due to a variety of reasons. What are you planning to do to prevent the people from going away?"

In the light of that new perspective We'll look into the ways to hold onto your best talent.

9 tips to boost employee retention

Revisit your compensation philosophy

The reason employees join companies is for more reasons than simply to get paid. But, it is one of the most important motives. Unsurprisingly, over half of employees believe that a salary raise would be enough for them to decide to change work.

To keep compensation from being the reason people quit your business, experts recommend the use of salary benchmarking in which you evaluate the salaries of your employees to similar companies in the same industry. If you're earning less than average, most other companies' offers will seem appealing to your employees. If possible, increase compensation above market rate as well as ensure that you're dealing with salary issues in a proactive manner in your conversations with employees. (Don't overlook that compensation encompasses benefits and equity packages.)

"I have seen a lot of companies with the wrong compensation policy, which is below the market, and are just absurd," says David Connors The Swarm's CEO. The Swarm. The Swarm. "Treat your employees properly. This is a fantastic choice, and the amount of firms that I've observed succeed in keeping the purse strings really tight is very, very low as compared to the companies that have been really generous with the way they invest in their employees."

The prospect of increasing wages is a bit scary even in a down market. Be aware that turnover comes with its own expensive costs. According to Gallup estimates, the cost of replacing an employee can range between 50 and 300% of their annual salary. And that's just the measurable expense: the continuous losing of employees can cause a decline in morale in the group, cause delays to initiatives, and cause a break in customer relationships.

Concentrate on equity and diversity

In a 2021 study, Momentive found that an individual's level of job satisfaction is directly related to how strongly they feel their company prioritizes diversification and inclusion.

For some, that correlation doesn't come as a surprise.

"People often view diversity by saying, 'Okay we'll check this box. We've hired this number of BIPOC workers, and we've also hired this amount of Asian Pacific folks, we've employed this number of Latinas,' and so on and so forth. It's way more than that." Williams says. Williams. "People have to feel safe and secure in the workplace, and they need the ability to connect to people that look similar to them."

According to Williams that integrating DEI within your business means ensuring people of any background feel welcome secure, protected, and welcome in your workplace, right all the way from the moment they are at your Careers page to the moment they leave for their final interview.

It's a good idea to ask you:

  • Do there exist diverse communities for members to join at work?
  • How do we show up for our employees when they've suffered a personal or communal tragic event?
  • How can we create a business a space where everyone can voice their concerns freely?
  • Does our benefit plan meet all of our employees' individual needs?
  • How can we make sure that people working full-time don't miss out on opportunities to work?

Take advantage of flexible work schedules

As COVID-19 erupted and businesses made the move to completely remote work, life balance suddenly became more achievable for many. Individuals were able to take care of their children and parentsand also had enough time to focus on their physical and mental health. Since offices are now open again more safely Many employees do not wish to loose that freedom.

"We received a lot of feedback from our staff that flexibility was what they cared about most," says Crystal Boysen the Chief People Officer of . "So during the past couple of years, we've been a much more deliberate about the way we conduct our work."

"If a company has several work styles it is essential to take into consideration each work mode 'persona' and what we're doing to create an enjoyable experience for everyone," says Alissa Conway the Vice President of Innovative and Employee Experience at .

Conway also emphasizes the importance of articulating and organization's value proposition and making sure it aligns with the current workplace experience of employees.

"Senior leadership must be able to address the question: "What is it that makes our company a great place to work and what's our worth offering to prospective employees? Is that in line with the experience internal employees experience? If not, how do enhance the employee experience so that we can achieve what we would like to see it become?"

Make improvements to your orientation and onboarding procedures

To improve retention, review your current orientation and onboarding methods from the point of view of your new hires.

Ask yourself:

  • Are they getting the data they require?
  • Do they get to know their team members that they'll be working with?
  • Are they able to access the tools and data they'll need, along with instruction on how to utilize all of it?
  • Are they connected to an individual they can go to in support?
  • How happy and supported does a new employee feel?

It can help to survey the new hires as they begin the onboarding process and orientation is over, in order to determine how you're performing and where your gaps are.

Train people managers

A manager's job is typically the first person they seek guidance as well as feedback or guidance. However, most managers haven't been specifically educated on how to handle employees.

"A majority of the time employees leave organizations due to their managers and not due to their jobs," says Williams. "If employees don't feel comfortable talking about their issues or worries to their supervisors then they are losing their talents. They think, "Okay Let me join an employer where I am confident that my voice will not be blocked or I'll not feel afraid.'"

An effective manager must ensure a secure and positive psychological environment for their team, encourage their professional growth goals, encourage their voices and give them awards, and assist them in enhancing their skills. Teaching managers how to cultivate the workplace environment both in-office and remotely -is a vital part of an organization's ongoing efforts to improve retention of employees.

Develop a culture of continuous education

According to Deloitte organizations that have a strong culture of learning are more likely to have employee engagement and retention rates that are between 30 and 50 percent greater than those of organizations that don't focus on the development of their employees and learning.

"Engagement is the primary aspect of retention," says Conway. "The more involved employees are in their teams, the more effective their work product is, the more productive they are, and the more committed to the company."

There are plenty of methods that can help you develop a culture of learning for example:

  • Setting aside a specific budget (and ample time) for books, conferences as well as other forms of professional development
  • Insisting on a formal mentorship program (for assistance, think about using an online platform such as Ten Thousand Coffees)
  • Coaching employees for their career, whether through an internal or external system like Ezra Coaching

Give employees actionable feedback

A key part of what you have to do, when building the culture of continuous learning should be to ensure that your employees get the sort of feedback that engages the employees, inspires them and aids them in their learning.

"It's about respect and ensuring you give directions and guidance," says Dan Brooks, VP of Creative and Brand at . "There are ways of phrasing feedback."

Instead of being overly direct, Brooks suggests asking questions that will spark curiosity in the team member, making your review more cooperative. Provide context for the reason you're suggesting particular strategies to ensure your feedback remains focussed on specific tasks (rather rather than general thoughts).

Communicate company-wide

It's not uncommon for siloes to form within companies, particularly when working in the hybrid or remote environment. Silos are, however it can have a negative impact on morale of employees because being separated from the larger team can cause employees to feel lonely and detached from the significance of their work.

It was evident to the company's own teams as we went remote in the beginning of COVID-19: as people were further away physically it was evident that there was a greater necessity for a company-wide communications.

Remind your employees to be recognized -- in a loud voice

According to a 2019 survey by Achievers, employees state a lack of recognition as among the top three reasons they start job searching. On top of that, over 80 percent of workers say they have received greater recognition in their workplace. This is a large number of people feeling underappreciated.

It's a good thing that it's simple to begin acknowledging colleagues' contributions at work -- you just need to set up the avenues to allow it to take place.

  • Create an "kudos" on Slack in which individuals can acknowledge coworkers' work or shout them to shout them out.
  • In town halls and updates, let members of the team who are involved in particular projects talk about their work.

Maintain your top talent into 2022 and beyond.