How to Retain Employees: Strategies
Good retention strategies result in increased productivity, performance, quality of work, and the bottom line. Employees are more engaged and committed to the mission of the organization. When employees enjoy working for an organization that values them, turnover is decreased. Four critical elements of retention include creating a positive culture, recruiting and hiring highly-qualified employees, growing employees with professional development programs, and providing them with fair and equitable compensation packages.
Retention begins with having a positive culture of trust, respect, and mutual support as the building blocks of good relationships and communication. All employees must know and understand how they contribute to the success of the organization. It is just as important to recognize the efforts of all employees. There are many ways to recognize employees including but not limited to incentives, public recognition of achievements, celebrations, awards, etc. Just the idea that employees are valued is motivating. Open and transparent communication is also critical. It is necessary to be able to give and receive constructive feedback.
Another strategy that is critical for retention is to recruit and hire high-quality talent. Spending time and effort on your hiring system will pay huge dividends in retention. It is important to hire a person who has the technical skills and is a good fit for the culture of the organization. To be a good fit, each person should bring a set of values and principles that complement the current workforce values and principles. By building a diverse workforce of varying ideas, the level of innovation in an organization increases and opens people’s minds to thinking in ways that could not be imagined otherwise.
Developing employees is key to retention. According to LinkedIn’s 2018 Workplace Learning Report, the findings suggested that employees consider workplace learning important to their career development and were more likely to stay if an employer invested in them. Five growth areas that were identified included training for soft skills, focus on industry trends for internal skills gaps, online learning solutions for a diverse workforce, getting employees to take the time for learning, and management involvement to increase employee engagement in learning.
The fourth strategy is the compensation packages that are provided to employees including a fair and equitable salary or hourly wage for work performed. It must be competitive with what others make for similar work to ensure retention. A well-rounded benefits package including health, life insurance, dental, and vision plans are important as well. Some employers provide full coverage while others expect employee contribution. Some employers provide stock options, while others provide pension programs. Raises, bonuses, and award programs motivate employees to continue to work for an employer. Financial planners are a valuable resource to assist in identifying the products that can maximize the employee benefits and help the employer with cost and tax-saving options. The more significant the options, the more likely that an employee will stay.