The rotation of employees for many positions in the company is a huge problem for employers and management. The manager or manager has to train new staff almost continuously. Employee retention turns out to be a problem. Retention, i.e., retaining employees, is based on its capabilities and, most of all, managers.
Low retention rate is most often the result of two variables: the labor market and its internal situation. You have to accept that employee rotation is inherent in the risk of running a business and is its natural element. Sometimes it is even advisable. How to increase retention if the cycle is too high?
The frequent rotation of employees in the company can cause significant financial losses. Experienced sellers or consultants usually have a database of loyal customers. Employee practice, substantive knowledge, and interpersonal skills acquired over the years of work bear fruit in the form of higher profits. So how to keep critical specialists whose departure could make business difficult, and what to pay attention to? Let's check.
Why is it worth keeping the best employees?
Moderation is in every area of life. It is no different with employee rotation in the enterprise. If it fluctuates around a moderate level, it can be invigorating as it allows you to generate new ideas and keep a fresh approach to various issues. However, every organization should have a developed strategy of retaining the best employees because it is thanks to them that it can create and maintain a competitive advantage. If you want to play a leading role in the industry, you cannot afford to lose the most valuable resource, undoubtedly high-class specialists. Ignoring a high turnover rate can entail considerable costs, ranging from lower its teamwork employee morale by shaking its external image to financial losses. So understanding the seriousness of the problem is crucial here. It is essential to know the reasons why people quit your company. The reasons may be, for example, finding a more attractive job or a desire to change or reevaluate your lifestyle. In such cases, it may be beyond the employer's ability to persuade the employee to reverse his decision. However, many people are forced to leave their workplace because they are dissatisfied with their current situation. So how do you keep the best employees in the company? Below are a few ways to avoid losing valuable specialists.
The main reasons why people quit their jobs
Experience shows that the most common reasons for leaving the company are:
• low level of wages and inadequate offer of benefits;
• lack of training and development opportunities;
• dissatisfaction with the behavior of the company's management;
• disagreement with colleagues;
• long/strenuous commuting;
• imbalance between work and personal life.
Retention of employees
Retention activities in managerial practice signal the implementation of a strategy of retaining human capital in one's enterprise. It is essential for supervisors that the talented and qualified employees who guarantee their goals remain among their staff.
Retention in the company
Retention is assigned to the HR department - specialists in human resource management. The department responsible for recruiting employees, their training, and defining the scope of competencies of superiors and subordinates should ensure that managers and managers have the means to retain employees.
The supervisor, who does not have any means of rewarding the employee, cannot effectively stop him when the employee receives a better job offer. The essential tools increasing the capacity of staff retention are, among others, financial gratification in the form of a bonus, training and skills improvement, the possibility of organizing competitions, the possibility of awarding a prize in the form of a raise or promotion, other awards, allowances and non-wage benefits. Of course, attractive to the staff of a given company.
Why is it important for enterprises?
Retaining qualified employees in the era of intense competition is nothing more than enriching your capital, in this case, not only human but also financial. A satisfied, experienced, and appreciated specialist is even more efficient, translating into an increase in turnover and profits.
It should be emphasized that financial gratification is the most tempting prospect for a company employee. Many years of fruitful work deserve recognition. Unfortunately, we often encounter a situation where the management has been deprived of the tools and the possibility of rewarding a subordinate.
Meanwhile, an employee who, despite reliable work, cannot receive a raise or a bonus, starts looking for a new employer, and what is worse, may accept a convenient external offer. And really, it's hardly surprising that he cares about his future.
The company's low retention capacity will cause outstanding full-time employees to leave. The profitability of the job will decrease if the staff do not quickly hire a new person. Training costs will also be a profit for the future employer of our former specialist. So how to prevent the situation discussed above?
How to retain good employees
The first step is to analyze and select the company's key members. This selection is essential as employee retention projects are not significant if they target all employees. Targeting a specific group of really key team members will bring better results with the same time and money expenditure. Identifying key employees is only easy. The most frequently used criterion is the results achieved. Nevertheless, there can be 'hidden gems in any company,’ that is, people who achieve expected results. Still, their knowledge, network of contacts, unique skills, or experience are critical resources. You can also find useful information about how to select a key work person in our book review article WHO? Solve your problem number 1.
When defining the company's critical personnel, one should consider the impact that employees have on essential aspects of the company's operations.
Key members are people who hold positions and have competencies that have a significant impact on such elements as:
creating the company's strategy,
implementation of the company's strategy,
company security,
key processes,
company profit,
company stakeholders (stakeholders are people, institutions, offices, and organizations that can influence the company's operations, such as suppliers, non-governmental organizations, government agencies, local authorities, local communities, media).
Managers advise to use the following methods:
• ensuring that the recruited candidates receive a realistic image of work in the company;
• increasing career opportunities;
• effective performance evaluation system;
• compliance with the company's diversity policy;
• real prevention of cases of bullying and intimidation;
• providing employees with the possibility to reconcile professional and personal spheres;
• implementation of mechanisms for monitoring employee dissatisfaction (evaluation system, possibility of filing complaints, etc.);
• leadership training for managerial staff.
Making your team members feel valued and proud of their work will increase employer brand value and reduce turnover. Developing a work culture that encourages diversity and creativity and implementing an effective anti-discrimination policy that promotes flexibility in employment are some elements that minimize staff turnover. Applying a retention strategy in practice is not an easy task. However, the implementation of this type of program will undoubtedly improve the company's situation.
How to improve employee retention
Having a strong employer brand will help you attract the right candidates and reduce the number of rotating by around 26% (Gallup). Besides, it allows you to keep your best talents.
What does "strong employer brand" actually mean?
We managed to organize the issue and create a list of the essential processes and areas to improve its teamwork employment period.
Organizational culture.
Organizational culture is a complex topic that is difficult to define in its essence. Values and behaviors that contribute to the organization's unique social and psychological environment.
How unique is your organization? How happy are your employees when they come to work? It’s more complicated than it sounds. The best way to identify the essential elements of a culture and improve them is to do research. Ask what the most important and positive aspects that make them happy at work are.
Provide employees with adequate remuneration.
There is nothing to divorce here: research shows that it is the remuneration that is a factor that has not changed for years. You have to pay your company members. Keep your salaries close to or slightly above market standards.
Encourage the most committed and loyal, create a transparent and fair system in the company.
Choose the right benefits.
The benefits package has become a bargaining chip in the employers' offering, one of the main elements that attract employees. It is growing so much that applicants are starting to expect it. Besides, it brings real results because employees appreciate a comfortable and modern office, high-quality medical care, co-financing of their interests, passion and development, and many other flavors that can make their stay in the company pleasant. Don't be afraid to be creative, surprise your team, and don't forget to engage your emotions. The more personal your benefits are, the more memorable and appreciated your people would be. Why not reward the top performers of the month with something like lunch with the CEO?
Adopt a culture of well-being.
Improving your organization’s well-being culture is the best way to show the company team that you care about them as an employer. Employee well-being can span several areas such as physical, mental, spiritual, and even financial well-being. Start with internal research and ask yourself what is most important to your current employees and respond to their specific needs.
Bet on employee development.
Nowadays, continuous improvement of skills, training, professional and personal development are a must. It can benefit your employees, but as a consequence - the entire company. You can use existing sources of online courses or motivate workers to become coaches. By sharing skills, you strengthen team spirit and integration among team members. It is useful to (also) start building employer brand awareness already at the onboarding stage! It will stimulate employee motivation from the first contact with the company.
Be flexible.
Millennials’ reports show that flexibility is one of the most valued factors in terms of employee satisfaction and retention at the same time. The importance of work-life balance is growing, and flexibility at work can make employees stay longer in the organization. Maintain a system appropriate to the needs of your employees, research your people. What do they need the most? Young people will appreciate the extra vacation; parents will appreciate flexible working hours to adapt their daily schedule to the family's lifestyle. The remote workforce is also showing an upward trend in terms of employment. Do you have a great graphic developer you don't want to lose but dream of working in Bali? Why not let them do it? Work-life balance helps keep the best employees for longer.
A healthy work-life balance model is not just about dividing the time evenly between work and private life. Rather, satisfaction in both areas plays a role in the compatibility of work and life. Developments in many areas of our lives over the past few years have contributed to the fact that striving for a healthy work-life balance is becoming increasingly important.
Benefits for employees
Better overall health by lowering stress levels
An increased productivity
Less absence times
A generally positive attitude and approach to life
Often it is small things like changes in managerial behavior or planning to return to work after a break that have a big impact. And those who have had the experience of being respected by the employer as a whole person and not just as a worker develop a greater bond with a company.
Use the power of gamification.
Last but not least. Gamification is the use of game elements in an environment other than the game, e.g., building the employer's brand. Points for activities, awards for achieved goals, profits, or other achievements or teamwork. Gamification improves organizational culture elements and makes people more involved in their duties and, consequently, stay longer. It can both improve team spirit and introduce a sense of healthy competition at work. You can find more information about gamification here.
Final Thoughts
To ensure a high employee retention rate, HR specialists and managers should provide appropriate development opportunities related to acquiring new competencies, industry certificates, or coaches' sessions. It is currently much more comfortable than before because there are many applications, e-learning services, and training on the market. The term gamification is also gaining importance, i.e., using mechanics known, among others, from computer games to increase employee engagement through achievement or competition.
Companies that want the best employees to stay in their positions should focus on mobile technologies, changing the outdated annual assessment system to regular feedback sessions, and personal and competence development of the people they employ.
Posted on Jan 21, 2021 by Anna
