Best Employee Retention Ideas For 2022

Companies need employees that are talented and dedicated. A company that keeps losing employees and has to go through the hiring process multiple times a year is not likely to progress. Every new hiring cycle is a stretch on the company’s resources, and the new employees need to be trained before they can contribute to the company, only for them to leave the company after a short while. This is where Employee Retention comes in.

Employee Retention refers to a company’s ability to retain its talented and experienced employees. Calculated as a statistical percentage, Employee Retention indicates how well the employees have adjusted to the company and are treated there over a certain period. A company employs certain strategies to reduce the turnover rate for its employees. Losing employees can not only cost the company financially, but it also reduces both the confidence and morale of the remaining employees, particularly if the person leaving was occupying some managerial position.

Benefits of Employee Retention:

These strategies can prove to be quite beneficial if implemented correctly.

Reduced Training Time:  

Every freshly hired employee requires some training before they are deemed capable enough to handle any job allotted to them. These training periods vary according to the job type and the company, but usually, these periods are either a month to three months long. During this period, they do not contribute to the company in any way. An experienced and skilled employee does not need to be instructed on how to get the job done, and they can perform efficiently, completing the given tasks quickly.

Increased Productivity:

Employees start to understand the workings and values of the company the longer they work there. An employee who has worked for a company for a couple of years will be well-versed in the operations of the company and will be able to make timely decisions regarding any problem. A new employee will need constant instructions and guidance to perform the simplest of tasks. Anything complicated of any problem they face, they will report it to their supervisor, rather than trying to tackle it themselves.

Reduced financial strain:

Hiring new employees is an expensive process. It costs quite a bit first to advertise the need for employees, hold tests and interviews and then train the fresh employees. It also results in extra load on the other employees who have to perform their normal duties on top of hiring and training the new employees. If a company's retention rate is high, then it can focus its finances on investing its time and money on other more beneficial pursuits.

Employee Retention Ideas:

Competitive Salary:

While working offers mental satisfaction and helps build social and economic connections, the main reason why people work is to make money. The better the pay scale and benefits offered by the company, the more likely it is for the employee to stay. Offering a competitive base salary attracts many people and allows a sense of achievement, and helps them feel as if their efforts and work are being appreciated. Some benefits that can be provided to the employees are an Insurance plan, Retirement plan, and Health Benefits.

Value the Employees:

Every person wants to feel as if what they are doing is worthwhile and that their efforts are being appreciated and rewarded. According to a survey, 90% of employees stated that they are more likely to stay at a company that takes their feedback and acts according to it. The company should focus on appreciating their employees and making them feel that they are valued and that their services are indeed important to the company.

Some ways to value your employees are asking their opinion on at least the matters that directly impact them, thanking them for their hard work, and congratulating them on a job well done. These may seem trivial, but they leave a big positive effect on the employees and inspire them to do better in the future.

Work-Life Balance:

Work is very important, but it is also important to remember that your employees have a life outside the company and appreciate their personal space and privacy. A company that infringes on its employee’s personal life and time is more likely to lose its employees. The company should make sure that the employees are given their due space and time off so that they aren’t burnt out. Paid vacations also help the mental and physical health of the employees and encourage them to do better. The company should also refrain from contacting its employees after work hours and pay them for any work they may have to take home with them, but only if they are willing.

Encourage Creativity:

Almost every company advertises the fact that they encourage and promote the creativity of their employees, but in fact, most companies don’t have any plans or strategies in place that allow their employees to explore their creative side. The companies that successfully harness their employees’ creative side are very successful and have a very high retention rate. One such example is Google, which is an international company with branches all over the world. Google has a 20% program through which their employees can work on side projects that interest them.

Respect:

Every person needs a workplace whose environment is comfortable and in which they feel respected. No person wants to stay in a place where they are disrespected or undervalued. The Human Resources Departments in the companies should listen to and work on any complaints that they receive regarding workplace discrimination and abuse to ensure that such things don’t fester in the company.

These are only a few strategies that a company can employ to ensure that their employees stay with them. There are many other successful methodologies for maintaining a high employee retention rate that every company should employ if they hope to succeed.