In fact, a bigger paycheck is not the best solution in this regard. You need to ensure a shared commitment to growth which is an excellent solution to retaining your employees. Rising attrition is an issue faced by most companies in today’s competitive marketplace. In fact, talent is in short supply in the marketplace right now. Add market stability and international economic recovery to this equation and we could look for a 15-20% employee turnover in the coming year. If attrition is an issue even when you are providing high compensation and benefits packages to match the skills of your employees, it is high time that you rethink your strategies of retaining employees.
Hire for Culture Fit
Successful employee retention begins with the first interaction between the company and employee. This happens during the recruitment stage. You need to analyse the employee to see if he/she is an organisation fit in addition to looking for skills and aptitude. If the employee’s mindset, attitude, personality traits, and working style is in alignment with your company, such an employee will not leave the company.
Communicate Well and Often
Company loyalty is not cultivated in employees simply by educating them on their role in the company and performance metrics. It is essential that you have a communication process where each employee is made aware of the mission and vision of the business. You need to inform them the significance of their contribution to the overall effectiveness of the company. You can do this by conducting either internal surveys, monthly meetings, or face-to-face meetings. The employee should be informed of the importance of the company, and why they need to consider the company their “employer of choice.”
Coach, not Manage
The management style of the company leadership may result in a higher attrition rate most of the time. In fact, employees leave managers more often than not. This is why you need to coach the employee and not really manage them. Effective talent management, setting goals, providing recognition & feedback, offering freedom to explore solutions, being available to their passions and frustrations are key to boosting the morale of your employees. Managers and the HR team should go beyond managing the employees and try to be a coach to them. Checking out payroll outsourcing options can help create such opportunities.
Flexible Working Schedule
Today’s employees need professional opportunities that offer a good balance between work and life. This is why it is essential that employers introduce flexible working times so that the employee can finish their work on time without sacrificing critical personal commitments. Whether you offer a work from home policy, schedule their workload effectively or offer an extended paternity leave, it is essential that you keep them productive and happy at the same time.
Create Growth Opportunities
Employees leave an organisation because they do not see an opportunity for career growth and development. Cross training on skills that interest the employee, providing financial assistance for higher education opportunities, and offering internal promotions are some of the best ways to motivate your employees to stay in your company. In fact, they may see an opportunity for growth under such circumstances.
Feedback and Performance Evaluation
Performance appraisals can work wonders only when there are achievable objectives to measure individual performance. It is important to inform employees on a periodical basis that they are doing well. You need to show them where they need to step up and how their capabilities are making a difference to the business. This will instil a sense of responsibility in the employee and create a desire in them to help the company better in the long run.
Reward beyond Salary / Bonus and Equity
Salary, bonus / equity are some of the main reasons that an employee joins an organisation, but these things are not enough to retain them. Recognising outstanding achievements should not be limited to financial rewards. It should include innovative methods to make an employee proud of his or her accomplishments. It can be things like featuring the employee in the company newsletter, inviting the employee’s family for dinner with the CEO, or displaying the employee’s name on the Wall Of Fame of the company. These simple things can make the employee feel valued and secure within the company environment.
Identify Why Employees Stay
Knowing, why long-working employees remain in the company, is very important. You need to conduct regular interviews and ask the employees questions such as why did you join the company? Why did you decide to stay? What would make you leave the company? What would you improve or change in the company? These will offer great insights into what motivates and demotivates the employee.
Remember that every employee is different. Hence, there should not be one size fits all method to retain the top employees. The senior management and HR should implement a collective approach to cultivating a culture that encourages upskilling, sharing knowledge, offers a healthy work-life balance, and offers a mutual commitment to building a successful company.