Employee retention refers to a company’s ability to retain its existing employees and prevent them from leaving the organisation. Employee retention results in increased productivity and is also cost-efficient. Although it is important to recruit new talents in the company that bring a fresh perspective, it is equally important to retain your key employees.
Undoubtedly, hiring is an exhausting and time-consuming process. And after the employee is hired, it takes a lot of effort and time to embed the required skills in the employee’s mind to facilitate the growth of the company. Therefore, companies consider retaining the existing employees as the best option. Since the existing employees know the process of work, they can work more effectively and produce better results.
WHY IS IT IMPORTANT TO RETAIN EMPLOYEES?
A company with high employee turnover has to invest a lot in the recruitment process. Constant employee turnover does not give the adequate return on the investment required by the company.
Employers consider retaining their skilled and talented employees by providing them with a healthy work environment. Here are some notable benefits of employee retention:
Saves Cost And Efforts
Recruiting the employees is a backbreaking process. It is highly difficult to find the top talent that fulfils the requirement of the job profile. After recruiting a candidate, training is a must. So, it is easier to retain your existing employees who know how the organisation works. Another challenge is that if a new candidate leaves the company early, all the time and cost that is invested in the whole process goes into vain.
Employee retention is directly linked to the productivity of an organisation. This means that a new employee may take some time to speed up the work process while old employees can do the same task in lesser time and more effectively. Companies with higher retention rates are likely to increase their productivity in comparison to those who have high employee turnover.
Employees stay in an organisation only when they are satisfied with the salaries & compensation, work environment, growth opportunities, and the culture of the company. If any of these aspects are missing, employees start looking for a job change. If a company is able to retain its employees, it depicts the interactive work culture of the company. Satisfied employees encourage other team members to work enthusiastically thereby resulting in profitability.
Retention of employees enables the leader to invest more time with the team and improve the performance of existing employees and make them even better. Existing employees are able to handle difficult situations smoothly and take on extra responsibilities. They are also capable of mentoring new employees whenever needed.
STRATEGIC APPROACH TO RETAIN YOUR EMPLOYEES
Retaining employees is as necessary as achieving the goals of the company. It is a team that helps in achieving those goals. It is always easier to work with a team of old employees who are experienced and have handled a similar situation earlier. You can follow these strategies to retain your employees:
Engage Employees From The Beginning
Start from the beginning, make such an impression on your employees that they feel that they are provided with better opportunities to grow. At the time of the onboarding process, make sure there is a proper induction of an employee. This process helps the new employee to get comfortable within the team and reach out to you if they have some sort of difficulty. Include each employee in the decision-making meetings as it gives them a sense of inclusion in the company.
Everyone needs some time for themselves, a good work-life balance can give employees the chance to take out time for themselves. Flexible work timings are beneficial in most companies, as they give employees the choice to work while maintaining their personal life. You can also adopt remote and hybrid working models occasionally. These few changes can help you a lot in retaining employees.
Provide Adequate Compensation
The majority of employees leave the company because they are not satisfied with the financial aspects. Low pay packages and delay in promotion results in an increased rate of employee turnover. Reward them for their efforts and contribution to the company’s growth. If an employee gets a timely promotion and due appreciation, they feel their value in the company. It also motivates them to work with more focus and dedication.
Engage in Fun Activities
Reducing the stress of employees by arranging some fun activities in the workplace can help a lot. The employees love to associate with a place that has a healthy work environment. Fun activities help in team-building and give employees the chance to strengthen their bonds. Fun activities reduce the employees’ workload & stress and boost their mood which effectively increases their work performance.
Take Feedback And Listen To Them
Maintain good communication with the employees. Ask the employees if there is anything that needs to be changed, or if they want to give any suggestions, ideas or any other feedback. Communication connects employees across different levels. It becomes easier for the employees to raise their concerns, queries and suggestions if there is no communication gap.
Employees are a crucial aspect of any organisation. If your company is able to retain its key employees then the productivity of the company increases significantly. Employee retention is a must for the company as it reduces the attrition rate of the company and also the cost that is invested in it.
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