Employee retention is an articulated, planned process where an employer attempts to retain their employees in the workforce. In this sense, employee retention is more of a business strategy than an outcome.
A working environment of an organization supports should be built to support the existing staff to remain with the company. Many employee retention policies are aimed at addressing the various needs of employees to enhance their job satisfaction and reduce the substantial costs involved in hiring and training new staff members.
Every organization invests time and money to onboard and groom new employees. Employee handbooks and corporate-ready materials are created to bring the new hires up to speed and on par with the existing employees as fast as possible. The organization is entirely at a loss when the employees leave their job once they are fully trained. An employee retention policy takes into account the various measures taken so that an individual stays in an organization for the maximum period of time.
Making all the best efforts to maintain such a working environment which supports the existing employees to remain in the company, while recognizing their abilities and contribution and implementing suitable reward and recognition strategies is always appreciable and one of the most important things that a business management can do.
A high rate of employee retention not only can motivate existing employees to work harder, but also can make prospective employees loyal to the company after the first interview. Thus, a well-designed employee retention and recognition / reward plan create a work environment where employees feel appreciated for their efforts and their contribution.
Conversely, high turnover affects the smooth functioning state of an organization. A high employee turnover rate, in addition to being an expensive problem, can negatively impact an organization in many ways. Employee turnover has a direct bearing on an organization’s revenue and profitability; it leads to decrease morale and creates an unhealthy environment for all. Employees who leave the organization suddenly or unexpectedly can hurt speak negatively about the organization both to potential customers as well as to the employees left behind.
This adverse impact on the employees left behind can be significant in a startup environment when resources can sometimes be in short supply. Also, most startups are founded on positive energy and a strong vision. You do not want bitter ex-employees spreading too many negative thoughts and feelings that can potentially take away from momentum. This is why it is important for even the earliest of companies to always have employee retention on their mind.
Some Basic Employee retention strategies
- Hire right people
- Employee empowerment
- Consider employee the most valuable asset
- Believe In Your Employees
- Provide them information and knowledge
- Feedback on their performance
- Recognize and appreciate
- Keep their morale high
- Create a “Healthy environment.”
- Offer a competitive benefits package that fits your employees’ needs
- Provide some small perks
- Use contests and incentives to help keep workers motivated and feeling rewarded
- Conduct “stay” interviews or Final interview
- Promote from within whenever possible
- Foster employee development
- Create open communication between employees and management
- Communicate your business’s mission
- Offer financial rewards
- Make sure employees know what you expect of them
These practices can be categorized into 3 levels:
- Low-Level Employee Retention Strategies
- Medium Level Strategies for Employee Retention
- High-Level Strategies