As employees continue to resign from their jobs in pursuit of better offers, many businesses focus on keeping valued employees on board. Here is a look at six employee retention strategies helping businesses boost employee retention in 2023.
1. Allowing Employees to Work From Home
The Future of Workforce Pulse Report from Upwork predicts that more than 36 million Americans will work remotely in 2025, marking a rise of almost 90% since before the pandemic showed the world what a feasible approach this can be. Remote work can increase employee productivity and happiness, which can greatly impact employee retention.
In addition to eliminating stressful and expensive commutes, it can allow employees to work with greater autonomy and fewer distractions. Although only some businesses can provide full-time remote work to every employee, hybrid solutions may be a good middle ground.
2. Promoting a Positive Work-Life Balance
Promoting a good work-life balance is another effective employee retention strategy that is also budget-friendly. Many individuals reassessed their priorities in the wake of the pandemic, and many modern workers now cite their desire for a better work-life balance as a reason for leaving a position, switching roles, or turning down job opportunities.
Improving employees’ work-life balance could come in the form of reduced workdays and flexible schedules or encouraging employees not to check their email or work phone outside of working hours.
3. Providing Wellness Benefits
While physical health remains essential, employees increasingly prioritize mental health and wellness, and your business’s benefits offerings should reflect this shift. Ensure that your workplace has health and safety protocols, and provide sick pay to encourage employees who are unwell to stay home and avoid spreading illnesses.
While high-quality health insurance will always be appreciated, some businesses are also increasing retention by offering employees mental health time off so they can address burnout. One effective approach is a collective week of time off for an entire team or department so that burned-out workers do not worry that they are missing out on important meetings or project developments while they unplug.
4. Offering Unique Job Perks
Insurance and retirement benefits will likely always form the basis of a good employee benefits strategy. Still retention can be enhanced further by thinking outside of the box. For example, providing employees discounts on purchases they are likely to make, such as food, cell phone service, or even travel costs, can help them feel more appreciated. Consider forming partnerships with local businesses to provide employees with useful discounts.
5. Providing Employees With Rewards and Recognition
Employees who feel like their workplace recognizes their contributions and rewards their efforts are likely to stay on board. One report by the Brandon Hall Group revealed that businesses that recognize employees multiple times each month have a 41% greater likelihood of experiencing higher employee retention and are 34% more likely to experience greater employee engagement.
Many businesses find that the best approach combines financial rewards with social recognition. Publicly recognizing employees shows the employee in question that they are valued and demonstrates to the rest of the workforce that their contributions are appreciated.
Appropriate financial rewards may come in gift cards, cash, or even paid time off. Businesses that are not sure how to proceed should consider asking employees directly or via surveys which types of rewards they would like to receive.
Do not overlook the importance of recognizing employees’ efforts. Even when a project does not go as planned or falls short of its goals, it is still helpful to let employees know their effort was appreciated. This can help alleviate feelings of hopelessness or defeat and motivate them to try harder next time, which can impact employee retention.
6. Consider Flexible Work Arrangements
For businesses that cannot offer fully remote work, flexible work arrangements may inspire some employees to consider leaving their roles to stay on board. For example, a compressed work week that divides the week’s working hours across fewer days can reduce employee commutes and give them time off during the week to tend to personal business.
In some cases, a partial telecommuting option may be feasible. Another good approach is letting employees choose their working hours so they can arrive and leave work at hours that suit their schedule, whether avoiding rush hour traffic or being available to pick up their children from school.
Reach Out to the Employee Benefits Consultants at Business Benefits Group (BBG)
A carefully planned employee retention strategy can save your business from the expense and hassle of recruiting and keeping valued employees on your payroll.
The team of experienced employee benefits consultants at Business Benefits Group (BBG) can work with you to create a tailored retention strategy that helps you achieve your objectives. Contact us today to learn more about our services.