4 Tips for Improving Employee Retention
Employee retention has always been a fundamental building block of successful organizations—the longer an employee works for you, the more productive they become, and the higher your retention numbers are, the less time, energy, and resources you have to spend to replace that production.
But today’s hiring landscape offers a whole new set of challenges that make retention efforts more crucial than ever for organizations to address. Today’s candidate-driven market has made competition for talent ultra-high as companies scramble for available talent. Making matters even more complicated, the modern costs of recruiting have only risen in recent years, and experts project that the estimated cost of turnover per position can easily eclipse 50% of that position’s salary.
Below, we’ll share some insights on strategies companies can incorporate to boost their employee retention efforts and mitigate the high costs of turnover.
1. Hire the Right People
The key to successful retention starts at the very beginning: hiring. But not just the act of hiring; the shaking of hands with an excited interviewee and wishing them well until their start date. Everything else that leads into hiring, the processes you have in place that lead to the eventual hire are critically important to make sure that the right people come in contact with you, come in to interview, and eventually show up every day to contribute their part to your overall business goals.
The application process, screening system, and interview selection process are all key components to increase the likelihood you identify the right type of candidate with the disposition and goals that align best with your company and thus set them up for a healthy tenure. But the converse is just as true, however. If your hiring practices and candidate experience are poorly structured or are disconnected from your company culture and expectations, it makes it much more difficult to add best-fit personnel.
Take time to define the exact type of experience, qualities, and skills that you know are needed for a certain role and then agree internally on how to identify them on a resume properly. Reflect on the type of personalities that will fit as seamlessly as possible into your own company’s unique culture and values. Investing an inadequate amount of time and thought into searching for the right candidate only increases the chance that a new hire will become a former employee sooner than you’d like, and you’ll be back to square one all over again.
2. Competitive Pay and Benefits Employees Expect
Ensuring that the pay you offer for a given role and company benefits you provide are competitive is essential to any sort of employee retention strategy (which is why we’re taking the time to mention it here, even if it may seem too obvious to be considered a “tip”). Above all else, the reason job seekers cite most frequently for leaving a job is more compensation. Because competition for talent is so steep currently, companies are beginning to realize that they have to pay a premium to keep the people they need.
Outside of the pure dollar amount a position pays out, job seekers are putting an increasing amount of value on the benefits and perks a company offers—especially younger generations. Generous paid time off, work schedule flexibility, opportunities to work remotely, bonuses, extended maternity/paternity leave, and more are key to ensuring employees are engaged, feel valued, and, most importantly, keep working for you.
3. Empower, Educate, and Highlight Progression
Even if pay and benefits meet or exceed an employee’s expectations, a lack (or perceived lack) of opportunities for career advancement consistently ranks among the top reasons employees cite for leaving their current job. If there are paths of progression available to employees, make certain they are (1.) aware that they exist and (2.) have the opportunity to equip themselves professionally to be eligible for that advancement.
Open, transparent communication from management and leadership about potential opportunities and career trajectories is the first critical step to establishing trust with employees that your organization has their best interest in mind and can be a long-term home. Next, provide opportunities for professional development, whether it be continued education, training programs, or mentorships. According to research from the Consumer Technology Association, continued education and professional development initiatives like these are considered one of the top benefits for retaining employees over the next five years.
4. Partner with a Specialized Staffing Firm
Certain industries, however, will always be forced to contend with high turnover rates simply due to the nature of the field. In this case, partnering with a staffing firm that specializes in high-turnover industries to ensure proven processes are in place to effectively address and resolve the issues that inevitable turnover presents can be a huge strategic win for many organizations.
At Bear Staffing, our team of experienced recruiters has built their careers on consistently helping clients overcome hiring challenges and implementing strategic plans to manage turnover and mitigate the damage it can inflict on your business. Get in touch with us today to learn how we can do it for you.