Due to employee turnover increasing over recent years, it is important for companies to understand how to hold on to qualified and valued staff. According to the Society for Human Resource Management’s (SHRM) 2016 Human Capital Benchmarking report, the annual employee turnover rate was about 19%. With the turnover rate being relatively high, it is essential that employers realize that they need to try to decrease that rate, since staff turnover can be very costly. Every industry is different and will have varied average employee turnover, but with the unemployment rate decreasing rapidly, holding on to talented employees is more important than ever. Below are five approaches that an organization can take in order to increase employee retention.
1. Offer Better Benefits
Employees often seek employment with organizations that provide at least a standard level of benefits such as healthcare, paid maternity leave, competitive wages, etc. Knowing this, it is important that companies value what their potential employees desire and take that into consideration when providing benefits. Offering more high-quality benefits will likely outweigh another company’s benefits if theirs are less attractive, and tip the scales in your favor.
2. Employ Selective Hiring
Hiring the right people can be tough. One factor of employee retention is how well people fit with their position. For example, managers are extremely important for a company and you want to make sure that whoever is being interviewed has the qualities and personality traits that suit the job. Those who don’t fully understand the expectations of the company are more likely to leave, which negatively affects the employee turnover rate.
3. Implement Learning and Development Programs
Employees also seek learning and growth within a company. Sometimes people will leave their jobs for other opportunities that they deem better for personal development reasons. Based on that, you may want to consider implementing a learning and development program to help employees advance in their careers and see how they can grow along with the company.
4. Embrace Company Culture
In terms of a work environment, employees are likely to stay longer at a company if the culture is positive and allows them to be themselves. Your staff should feel comfortable and safe, and enjoy being around their coworkers. Positive work environments can allow for more productivity and social interaction among employees.
5. Encourage Employee Engagement
Along with embracing company culture, you want your staff to be engaged at work. This means that creating a good organizational culture can contribute to decreased staff turnover, which correlates with a higher staff retention rate. It is important to create value for your employees so they stay engaged, and have good reasons to stay with your company.
These five ways to increase staff retention are only a few of the approaches that can benefit your organization. Interested in learning more about techniques to boost your staff retention? Click here to contact a CoreAxis specialist to give you professional insights on employee retention in the workplace.