In a time when almost 40% of employees switch jobs every year and 45% of employers say that they are unable to find employees with the right skills, employee-retention strategies are a top concern for talent managers. Here are a few facts:
- By 2030, the global skill crisis will reach a shortage of 85 million people.
- The larger the organization, the harder it is to find the right fit and retain the employees they manage to get on board.
- The average cost of employee turnover ranges from 50–150% of the employee’s annual salary.
- 87% of CEOs say that they have at least one talent challenge and as experience and skill level rises, the difficulty with finding needed talent rises with it.
The costs associated with turnover aren’t just limited to hiring and retention. Employee turnover has a domino effect: one lost employee leads to lower morale, decreased knowledge, and less customer engagement. And when you add the changing nature of the global workforce to the mix, the problem only amplifies.
So, how do we overcome this challenge? How can we create retention strategies that really work? 8 techniques are listed below:
1. Invest in Employee Development
The newest members of the workforce (Millennials and Gen-Z) require development opportunities. 42% of employees say that they will stick with an organization if it invests in their development. Provide skill-development opportunities and offer mentors. Give employees avenues to learn new skills and acquire knowledge. Facilitate job rotation. Some companies even go so far as to offer tuition reimbursement to their employees. Pick a strategy that works for your organization, but make sure all of your employees are encouraged to develop and grow.
2. Communicate Openly
Ensure a firm and clear understanding of job roles, responsibilities, and performance criteria. Be very clear with your employees (new hires and veterans alike) about workplace expectations and company policies.
3. Customize Benefits
Beyond regular benefits (such as health insurance, sick leave, retirement packages, vacation time, health-savings plans, and so on), offer other benefits that cater to the needs of your employees specifically. Working parents might find flexible work schedules and childcare options attractive; some might like sabbaticals; others might like gym memberships, profit sharing, or other financial incentives. Ask for your employees’ input and listen to their suggestions.
4. Encourage Feedback
Regular communication is vital to employee engagement. Encourage employees to speak their minds and provide input on your products, processes, and services. Be respectful of their feedback. Open communication builds trust among employees.
5. Make Them Feel Noticed and Valued
Indifference demotivates employees. Acknowledge their efforts and reward them appropriately. These rewards can range from simple thank-you notes to financial incentives, gifts, and promotions.
6. Keep Burnout in Check
Constant overwork is a motivation-killer. Watch for signs of overworked employees, and know your employees’ capabilities and assign work accordingly. Most employees now seek true work-life balance. Research says that reducing workplace stress levels increases productivity.
7. Give Them Meaning
Millennials and Gen-Z employees are heavily invested in social causes. Generating opportunities for them to get involved in something outside of work that matters to them creates a strong team bond and a shared vision.
8. Conduct Exit Interviews
Exit interviews will give you insights into what employees do and do not prefer in your organization. You can use the information you gather during exit interviews to put better organizational practices into place.
Work to forge better ways and better strategies for retaining your organization’s talent and you’ll reap the benefits in your company culture and your bottom line. Most of all, keep getting better. Talent management is all about the continuous improvement of people and the organization. To learn more about employee development and retaining your organization’s talent, contact CMOE.
Content written by Guest Author: Ariaa Reeds