WHAT DRIVES RETENTION?
There are various factors that drive retention such as employee engagement, compensation, and whether or not your employees feel appreciated at work. Additionally, flexibility and manageable workloads also help to maintain retention. Retention is also affected by factors that are both within and outside of your company’s control, making it important to identify what those controllable factors are and controlling them to your advantage. To find out what is driving or hindering retention at your company it can help to get input from employees and take a look at the way your company operates to see how its characteristics are affecting retention during an employee assessment.
WHY ARE PEOPLE LEAVING THEIR ORGANIZATIONS?
People leave their organizations for a variety of reasons both within and outside of the company’s control. With that said, a study by Work Institute found that nearly 75% of employee turnover was preventable. Some employees leave because of high stress or an unmanageable workload, others might leave because of inflexibility or inadequate compensation. Another factor that can cause employee turnover is employee disengagement and feeling underappreciated at work. When trying to promote retention at your company it is important to be able to identify what is hindering retention so that you can target the problem and develop a solution.
WHAT DO EMPLOYEES NEED TO STAY LONGER?
Every company is different and employees at these different companies have different needs, however, there are common factors that can help employees stay longer. Employee engagement is key to making employees feel that they are actually a part of the company as opposed to just a worker and engaged employees are more likely to stay at a company than those that are unengaged. Employee retention also benefits from recognizing and praising employees for their hard work as well as having flexible work options so that employees do not leave seeking flexibility.
WHAT CAN MANAGERS DO TO SUPPORT RETENTION?
Feeling recognized and valued at work are important factors that promote retention, and managers can make sure that this happens by praising their employees for their hard work and seeking feedback and input from employees about projects, their experiences at work, etc. Managers can also make an effort to check in with employees occasionally to discuss their performance at work and let them know that they have an impact on the company.
WHAT CAN LEADERSHIP DO TO SUPPORT RETENTION?
Incentivizing employees to perform well at work also helps to promote retention. Leadership can offer incentives to employees such as gift cards, paid time off, and appropriate compensation. Leaders at a company can also promote and support mental health in the workplace and check with employees to make sure that their workload is not too heavy. Poor mental health or stress that stems from an employee’s organization and factors that can result in employee turnover.
WHAT CAN EMPLOYEES TO DO BE MORE INSPIRED AND ENGAGED?
Employees can turn their job into a means of advancing their careers as opposed to just an income generator by seeking opportunities to improve the organization where they are employed and taking advantage of changes to learn from employees in higher positions. Going to work for something other than money can make employees feel more inspired and engaged, motivating them to do their best work for the benefit of themselves and the company.
HOW MUCH CONTROL DO COMPANIES HAVE OVER RETENTION?
Companies cannot control all factors that impact retention, for example, some employees leave companies because they moved to a different location and other employees leave work because they need the flexibility that their current company could not provide. However, a study by Work Institute found that about 75% of employee turnover was preventable, making it important for company leadership to examine their workforce and the environment that they work in to identify and address factors that can negatively impact retention.
WHY IS HAVING GOOD RETENTION RATES RETENTION IMPORTANT?
Losing employees can cost money because of the costs to hire and train new employees. Additionally, low retention rates can result in your organization being understaffed, putting a bigger workload on your current employees. This makes it all the more important to promote retention in your company because it can help you avoid the costs associated will replacing employees. It also helps to prevent de-motivating or burning out your employees because they are overworked due to an insufficient workforce.