Employee turnover can be very costly and disruptive for companies. Conventional wisdom suggests that offering employees a higher salary or other financial benefits is the best way to keep them on board. However, there are other successful approaches that can be even more effective in securing a satisfied workforce that is engaged and invested in the future of the company.
Outlined below are 5 innovative employee retention strategies that can help business owners retain top talent:
1. Focus on Manager Training
In many cases, employees leave their job because of a lack of support from their supervisors. A poll carried out by Visier of more than 2,000 employees revealed that more than two out of five workers have left a job due to a bad manager, while more than half of those who were considering leaving their jobs cited their manager as the reason they wanted to change roles.
Therefore, investing in effective training for your management team aimed at helping them effectively support employees and their development can go a long way toward keeping valued them on board.
The right training can also give managers the skills needed to have challenging conversations with the employees they manage. This can help them communicate to employees when changes are necessary to their job process, or help work on certain skills in a positive yet firm manner that gets results without making anyone feel unappreciated or unsupported.
Employees need to feel that their managers respect them as people, and proper training is a great way to achieve this.
2. Support Employees in Their Educational Pursuits
Some employees quit their jobs to go back to school to further their education. Companies can avoid losing employees to educational pursuits by offering support for their educational development while they stay on the job. A business may consider reimbursing employees for any academic courses they successfully complete while working for the company, particularly those that are related to their current role.
3. Promote a Proper Work-Life Balance
When employees feel they are expected to constantly be in “work mode”, they are likely to experience significant stress and eventually burn out. This not only impacts their productivity, but it can eventually prompt them to seek employment with another company that places a greater emphasis on quality of life outside of work.
According to the Organization for Economic Cooperation and Development, around 12% of employees in the United States work very long hours. At the same time, full-time workers dedicate a lower percentage of their day to personal care and leisure. The problem is particularly pronounced in working parents, who struggle to successfully balance work with their personal life and family commitments.
Businesses should encourage their employees to attain a positive work-life balance. This may be accomplished by encouraging employees to take paid time off or offering more breaks during the work day.
Another increasingly popular option is to offer work-from-home programs that give employees the flexibility needed to perform their best each day. Well-rested employees who have enough time to care for themselves and their families perform better at work and are more likely to remain with the company.
4. Encourage Employees to Provide Feedback
Many employers do not hesitate to provide employees with feedback, but few have a system in place for accepting feedback from those who work for them. This is a significant oversight because workers who feel their opinions are not being considered tend to believe that their company is not interested in making improvements or pursuing valuable ideas. This can lead employees to believe that their situation is unlikely to change, prompting them to seek opportunities elsewhere.
By creating a culture where employees feel comfortable sharing their suggestions, companies can create a more engaged workforce. Regular communication can create the type of healthy and energizing work culture that keeps employees satisfied with their current company.
One successful way to create an effective employee feedback loop is by encouraging employees to voice what is on their mind. Some companies use surveys to gather feedback, asking “yes” or “no” questions, or seeking ratings of certain aspects of their job on a numbered scale.
The numbered scale system can be easily analyzed by software to determine the strengths and weaknesses of the company regarding workforce satisfaction. However, it is also important to leave space for open-ended questions so that employees can speak freely about topics they want the company to know.
Employee feedback must be analyzed to find trends; the companies must then take action to address any weak points. Talking about what you will do to correct these problems is not sufficient; leaders must make a plan, commit to positive changes and follow through. Ensure that employees understand how you are going to address their needs, making them feel heard and acknowledged.
5. Offer Innovative Perks
There is no denying the role that benefits and perks play in employee retention. While many companies offer staples such as health insurance and paid time off, businesses can gain an edge by offering employees benefits that go above and beyond the standard offerings.
For example, some companies are offering flexible hours that allow employees to schedule their start and stop times around family commitments and commuting issues, while others are allowing employees to condense their standard hours into a four-day work week. Some are allowing employees to work from home, either occasionally or full time, allowing them to avoid the stresses and expenses involved in commuting.
Health and well-being perks are also highly valued by employees, from sponsoring gym memberships to offering in-house yoga and workplace weight loss challenges. Discounts at popular retailers, mental health benefits and fertility benefits are also greatly appreciated by modern workforces.
Discuss Employee Retention Strategies with the Premier Benefits Consultants
A certain degree of employee turnover is expected in every industry, but this can be minimized with the right retention strategy. There are many innovative solutions that can help companies keep employees engaged and happy, which can improve productivity and increase profits. For help developing an effective retention strategy, contact the experienced benefits consultants at Business Benefits Group (BBG) today.