The Importance of Employee Retention

With the “Great Resignation”, companies are starting to recognize the importance of retaining their best talent by addressing their personal and professional needs, prioritizing their wellbeing, and providing them with flexible benefit options.  Employers who fail to do so in a post-pandemic world will risk losing their top-performing employees to competitors.  While employee retention is becoming a critical factor in a company’s long term success, it is about time to focus on good hiring practices that convert into high employee retention rates.  Below is a great visual from Oracle that shows 10 benefits of employee retention.  This is so important to look at while trying to keep or improve your employee retention rates.

Keeping top performers and seasoned employees is the first step in increasing retention rates.  Employees leave their employers for many reasons, among them: they find a different or better job, they want more money/benefits, they don’t feel valued and appreciated, they move, they go back to school or they retire. Some employees are also fired or laid off.  While all of these are examples of turnover, employee retention focuses on voluntary turnover as opposed to involuntary turnover like getting fired.  When employees do leave, exit interviews are very important as it can give you great insight into how employees feel about the company and why they may be leaving. 

Hiring the right people is a great second step.  Finding those people is the hardest part.  You want to find hard working people who can fit in with your company’s values.  With digital media, you can no longer count on just an interview and a good resume.  You need to keep your eyes open for the right candidate.  It’s important to get a clear sense of both how you foresee the ideal candidate growing in the role that you’re hiring for, as well as an understanding of the career goals of your potential candidates. Getting a sense of both aspects will help you determine whether or not there is alignment between your job candidate and the company’s goals.

Once you find that right person the third step is to keep them.  You want to make sure that all new employees are set up for success.  The onboarding process is vital to making sure that an employee stays.  This is one of the first interactions with the company that they will have.  The onboarding process will give new employees the chance to understand the job they will be doing as well as learn about the company culture and how they can contribute!  Mentorship programs are always one of my favorites! I love being paired with a seasoned employee.  They offer guidance and are always someone that the new employee can go to for any questions or concerns.  Plus it is always nice to make a friend!  Employee compensation and company perks always help make the employee feel good as well!  Lastly, communication and continued training is essential to making new employees feel like part of the team.  When you feel part of the team, you want to stick around.

Not all companies will have the same drivers for employee retention.  As a business owner, once you figure out what the key drivers are for your employees, you can implement those drivers and hopefully keep your employees happy for a long time. 

 

Sources:

https://www.roberthalf.com/blog/management-tips/effective-employee-retention-strategies

https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention-benefits.shtml?mc24943=v2