Statistics say 51% of the employees are considering a new job. Alarming!
And the cost to replace an employee is about 33% of the employees annual salary.
Do the math.
Before we jump to the strategies to retain employees, let’s understand what is employee retention ,why do employees leave and why is there a need for it..
What is Employee Retention?
In very simple words employee retention is referred to the various practices which let employees stay with their current organization for a longer period and do not let the idea of looking elsewhere pop up in their mind.
Most organizations invest time and money to groom and train their new employees and help them be corporate ready and bring them at par with the existing employees.
Organizations are at a loss when employees leave after they are fully trained. Heavy loss!
Why do Employees Leave?
Studies on employee behavior say that most employees leave out of constant friction with their peers or superiors and mostly out of frustration.
1. Work relationship with their superiors.
Employees don’t need to be friends with their boss but they need to have a good working relationship. Immediate superiors are an integral part of an employee’s daily life and an uncomfortable relationship is the last thing they need.
Superiors provide direction and feedback, spend most of the workday, a toxic relationship will lead to a lack of commitment and confidence.
According to many sources, the wrong boss is the number one reason why employees quit their job.
2. Bored and unchallenged by the work itself
No one likes a boring and unchallenged job. It is very important to help the employee do what they like to do and help them find their passion, it is important they enjoy it, practically most employees spend a third of their day getting ready for work, and transporting themselves to work. It is important to make their time count.
3. Relationships with coworkers
Employees spend over 85% of their work time with their co-workers, friction among them is no very inviting, hence the right person that fits the team and culture is important and this factor should be kept in mind during hiring. It is better to be safe than sorry.
Relationships with coworkers retain employees in many ways, it keeps the environment and happy. Employers should notice and intervene if problems exist, only if the employees appear unable to solve the problem themselves.
4.Opportunities to use their skills and abilities
Using their skills and abilities on the job creates a sense of pride and accomplishment leading to more self-confidence and more participation in the activities they are good at and would further stretch to perform better.
Human beings need to continuously develop and grow their skills, If they don’t get in their current job they will start looking elsewhere, this also includes opportunities and a clear path of growth in the organization.
Make sure you’re talking to them and that you understand their hopes and dreams.
5. Contribution of their work to the organization’s business goals
Managers need to sit with their subordinates to discuss the relevance of the employee’s job and contributions to the organization, they need to feel connected and understand that they are part of an effort that is larger than their job.
Many managers assume that employees receive all the necessary communication about the goals of the company from the executive staff. The fact is they do not. Hence it is vital for the manager to help them understand.
6. Meaningfulness of the employee’s job
We all have this urge of doing something meaningful, to add value, to make a difference.
This feeling of contribution to something bigger, something better leads them to perform better and hold their seats in the organization.
Help employees connect to why their work has meaning or they will find a job with an employer who will.
7. Corporate culture
Corporate culture is slowly growing to the top list of the employee’s list. The overall corporate culture makes a huge difference for the employees now.
Employees appreciate a workplace where the communication is transparent and executives are approachable, a culture where the direction is clear and they find respect in their jobs.
8. Recognition of employee job performance
Employees tend to search for milestones of achievement, a benchmark they try to exceed and once they do that it is very necessary it noticed and appreciated.
Genuine appreciation goes a long way and is a significant checkpoint for the employee.
Need & Importance of Employee Retention
Let’s understand why retaining a valuable employee is essential for an organization and its growth.
1. Hiring is time-consuming:
The entire recruitment takes a lot of time, from HR professionals shortlisting individuals from a pool of candidates, conducting preliminary interviews and then sending it line-managers who further check them for a fit. It is a time-consuming process.
2. Threat of joining the competitors:
When this happens they tend to take all the strategies, ideas, execution plans to the new organization, important facts, data, statistics and in some cases vital information about the organization, this can harm the organization in ways more than one.
Strict policies should be made which prevents the employees to join the competitors. This is an effective way to retain employees.
3. Familiarity with the company’s policies thus they adjust better:
Employees who spend a considerable time in the organization understand it in and out and perform better than individuals who hop jobs frequently.
4. Loyalty towards organization:
Employees that stick around for longer receive more benefits and as a result, are more attached to it. They always think in favor of the organization.
1. Salary and benefits need to be competitive
Any organization would be happily willing to pay more for the right candidates, organizations need to be sure they are not underpaying their current employees and that they are matching or exceeding the market value.
It is not always about money, career advancement opportunities, better benefits, and perks all need to be taken care of.
2. Hire the right person at the start
If you hire a quitter, don’t be surprised if they quit. If you hire someone who’s a bad fit for your business, don’t be surprised if they (or employees they’ve annoyed) quit.
A study suggests 37% of hiring managers agree that new hires stick around longer if they were better informed during the hiring process. A poor and not defined onboarding experience for a new hire builds a foundation of negativity in the new job.
3. Reduce employee pain
Employees are people and not robots, you need to make sure the work-life is maintained and that they are not in pain.
Eliminate the pain points before they start building, don’t take good employees for granted, some employees, because of their personality, nature or simply by the way they are, won’t even realize they are overworking themselves. Gifting a random paid holiday helps.
4. Have Leaders, Not Bosses
Everyone wants to be a boss, but only a few want to be leaders.
Good leaders let employees know where the company is headed and can handle the challenges that come their way, they simply do not offload their stress burden intentionally or unintentionally onto the employees.
5. Be steady and structured.
It is very important to provide work schedules regularly and in advance, so employees can plan their actions accordingly, have everything structured, anything less is chaotic and people don’t stick around for chaos and drama.
6. Be a brand your employees would be proud about
We have entered into a generation where people want every aspect of their life to be a part of a solution, not a problem, be an organization known for the positives for involvement in helping the society, environment, and community. Find a way that your business can fit such a reputation.
Employees who are passionate and care about society and the impact they create consider working with such an organization for a longer period.
7. Provide learning opportunities and path of advancement
Promotions go hand in hand with employee advancement, provide employees with the opportunities to learn and upskill themselves, in-turn they will feel valued and also contribute to the organization’s success.
Studies have shown employers that focus on the employee’s education witness a higher retention rate. Help and clear any roadblocks that come their way professionally.
Tech Firefly is a specialist in IT staff augmentation for Fortune 500, mid-size and start-ups. An experienced staffing company, hiring talents in 10 countries and 20+ Foreign Languages. We can search for talent around the clock with our recruiting team members based out of India, the United Kingdom, and the United States. We provide amazing talent to Big Data, High Tech, E-commerce, IoT, Biotech, Fintech, and Digital Media companies. We hire for IT, C Level, professional, Sales and Marketing, Back office and Administrative, Healthcare, Business Intelligence and Accounting/Financial positions.
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