One of the biggest challenges every organisation encounters today is developing successful employee retention strategies.
Tracking the attrition rate is an important part of employee retention. However, attrition is different from turnover, and companies need to learn the difference.
According to a recent report from Aon, India is experiencing the highest attrition rate in decades (21%). The competitive job market and employees’ high expectations are making it increasingly difficult for employers to keep their top talent.
If you are one of those C-level executives who want to see a positive change in employee retention in your organisation by 2022, then this article will prove helpful.
Here are 6 employee retention strategies that can help you achieve that milestone.
But first, let's understand the differences between attrition and turnover.
The difference between attrition rate and turnover rate
Many business owners and HR managers use attrition and turnover rates interchangeably. Both terms reflect how an organisation is losing employees, but they are different metrics.
HR Toolbox defines the two separately, saying that "with attrition, vacancies aren't immediately filled up. Meanwhile, turnover is a more short-term metric."
So, in that sense:
Employee turnover refers to employees leaving the organisation due to not-so-good reasons. When this happens, it generally means that they're finding better jobs elsewhere. Or they're quitting due to a hostile or discriminatory work environment, or they're stuck in a dead-end career without learning opportunities.
The fact that employees are leaving the company is usually a bad sign, and you have to replace them immediately.
Employee attrition refers to employees voluntarily leaving their jobs. So, rather than being fired or laid off, they leave of their own accord. Employee attrition is the natural result of people's changing lives and needs. The company doesn't control it, and it shouldn't be seen as a reflection on the company or on management. They may leave due to retirement, having to work in another department, having to go back to school, personal reasons, etc.
With attrition cases, usually, the vacancy remains unfilled, or the employer completely eliminates that position. However, in many cases, employee attrition is considered bad because it means you lose hard-working workers and spend money and time recruiting new ones. Not to mention the productivity loss or errors and cultural hits you take.
Whether one talks of turnover or attrition, companies need to react fast and come up with innovative employee retention strategies if they want to save the company. Both metrics enable you to understand what happens in your business, and are therefore precious for organisations seeking to improve their employee retention strategies.
Employee retention strategies to improve your attrition rate
If most of your voluntary attrition has been caused by people leaving to do personal reasons, then there's little you can do. But if most of your voluntary attrition was due to dissatisfaction with the job itself or the position, look into what could make the job more enjoyable.
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So here are some innovative employee retention strategies in 2022:
#1 Monitor employee satisfaction
There are myriad employee retention strategies, but monitoring employee satisfaction is one of your best bets for keeping employees with you.
More often than not, people leave because of their boss, not their job. And there are some signs that show you may be the culprit.
Simply asking them how they're doing, and having regular check-ins and more formalised surveys does the trick. Knowing what makes your employees happy can be a big factor in preventing them from leaving.
If they don't feel like you value their contributions and want them around, they won't stick around long enough for any other strategy to matter.
Employee retention strategies must begin at onboarding and end when an employee leaves. If it only happens once a year or less often than that—you need a better plan.
#2 Evaluate your employees' goals
One of the most innovative employee retention strategies is to create a set of goals and timetables for your employees.
When people feel like they're part of something bigger than themselves, they tend to develop a sense of loyalty toward their company and take pride in their work.
One caveat here is that if your goals are unrealistic or poorly communicated, you may find yourself with a demoralised workforce. So make sure you take time when developing your plans with employees—asking questions, getting feedback, and fine-tuning as necessary—to ensure that everyone's on board with their respective goals.
Once you have a plan in place, make sure it's something that will be revisited at regular intervals so you can continue to encourage employee growth.
#3 Know what makes them stay or leave
Find out what motivates employees and use that knowledge to make their job more rewarding. You can't hope to reduce the attrition rate if you don't know what makes your employees want to stay or leave.
That goes for pay, benefits, work conditions, and even working hours. If you figure out your key talent value, you'll find developing your employee retention strategies easier.
It's easier said than done, but once you nail down what motivates each of your best employees (and how they differ), it becomes much easier.
Rather than trying different strategies until something sticks, try tailoring a solution that fits each individual employee while still working toward reducing overall turnover.
#4 Offer more flexibility, perks, and benefits
Flexibility is becoming increasingly important to workers.
Offer flexible scheduling and telecommuting, along with benefits like on-site daycare and gym memberships, to make work a more inviting part of your employees' lives.
Even if you're a smaller business without huge resources, you can still provide perks that matter in your employee retention strategies. Maybe your staff gets to bring their dogs to work, or they can work part-time while attending school. These little things go a long way towards building loyalty among your staff.
Focusing on flexibility from day one won't feel forced or out of place once you start hiring more people – it will just be how your company does things.
#5 Recognise your employees' efforts
If you have a high-performing employee who's thinking about leaving, think about formally recognising their effort and contributions.
Sometimes your recognition might be monetary: a performance bonus or an increase in pay grade. Other times, recognition might come from public acknowledgement at company meetings or even a personal letter of thanks.
Recognition can go a long way towards keeping top performers around, especially if tied to how well they help execute your new employee retention strategies.
#6 Compensate your employee fairly
One reason why some of your employees may leave your company is due to compensation and salary. As such, if you want them to stay and do better work for you, then make sure they are being paid what they deserve.
That way, they will be more motivated and feel more appreciative towards their job. It will lead them to perform better, which will eventually help boost your company's productivity and efficiency!
In a business milieu plagued with high attrition rates, the onus to prioritise employee retention is firmly on employers.
There are different things you need to consider when developing your employee retention strategies. Defining roles clearly, using talent analytics, aligning employees' values with the those of organisation, enhancing employee satisfaction, and encouraging participation in career planning are a few more ways organisations can reduce attrition.
Are you an HR or business head, an entrepreneur, or a team leader? If the well-being of your team is a priority, Manah can be your go-to partner. Do check out our services:
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