Finding top talent in a busy and competitive job market has become very difficult and quite costly. With average hiring costs starting at more than $4,000 per hire, it makes sense that employers are searching for viable employee retention ideas to improve employee retention rates throughout the company. The good news is that there are several actionable steps you can take right now to help retain your best employees.
Here’s a look at the top six strategies that can help improve retention rates.
1. Competitive Salary and Benefits
There is no doubt that salary is still important to employees. In fact, according to a recent survey, low salary ranks as the No. 1 reason why people leave their jobs. An excellent salary, however, isn’t the only thing employees want—they also want good benefits, such as affordable medical coverage, flexible hours, and work-from-home options. Benefits and perks are so important to today’s workforce that 80 percent of employees state that they would accept a job with lower pay for better benefits.
If you want to keep your best employees, it’s vital for your company to regularly assess salaries across the board to ensure they remain competitive. You also want to frequently survey your employees to determine what benefits and perks are most important to them. These steps will help you create a salary and benefit package that will make your employees want to stay.
2. Employee Training and Development
According to the Bureau of Labor Statistics, the average length of employee tenure is 4.2 years. Depending on your company’s industry and location, the average tenure may be much lower than this. At first glance, it may appear that employees are just hopping from job to job, but the reality is that today’s workers are not just looking for their next job—they’re looking to grow their career.
If you want to keep these career-minded employees, you must have a comprehensive training and development program in place. Not only do these employees want to learn and expand their skills in their current position, but they also want to know that there is potential growth for them inside the company.
3. Frequent Employee Recognition
Employees, like most people, want to be recognized for a job well done. They want to know that their hard work is appreciated. Even though studies show that frequent employee recognition can improve retention rates and decrease absenteeism, many employers still fail to make recognition a priority.
According to the latest State of the American Workplace report, only 30 percent of the employee surveyed received any type of recognition within the last week. This report also states that employees who do not feel valued on the job are twice as likely to quit in the upcoming year. Your company can go a long way in improving retention rates across the board by implementing an effective employee recognition program that offers frequent and meaningful recognition.
4. Two-Way Communication
The happier your employees are in the workplace, the more likely they are to stay. To make this happy workplace a reality, many employers have invested in building a positive workplace culture. This strategy sounds great in theory, but it will only work if you really know what your employees want and you know how to convey this message to your workers. Both factors require effective communication.
You must start by offering your employees a level of transparency. Don’t be afraid to share the company’s short- and long-term goals with your workers and to set clear expectations. This will make them feel like they are part of the team. But, remember that communication is a two-way street. You must also be willing to listen to your employee’s input, ideas, and concerns, and act when necessary.
5. Employee Rewards Program
An employee rewards program takes employee recognition to a whole new level. This type of program not only lets you recognize your employees’ contributions to the company, but it allows you to provide them with tangible rewards to show your gratitude. When implemented correctly, this type of program can improve workplace morale and increase productivity.
The most important thing is to create a comprehensive employee rewards program that offers transparency and consistency. For example, consider starting an employee recognition program that gives rewards for various milestones, such as years of service, promotions, or sales achievements. The right employee rewards program can help to boost employee engagement and improve retention.
6. Improved Hiring Strategies
One of the best ways to improve retention rates is to hire the right employees for the right positions. Take some time to evaluate the effectiveness of your hiring strategies to make sure your company has the tools it needs to identify top talent candidates. Identifying the best applicants is just the first step. You must also determine which candidates are a good fit for your company.
Start by defining your workplace culture, so you know what types of employees you want. Also, develop a detailed job description that lists the various skills and attributes you are looking for in a new hire. Having set criteria right at the start of the hiring process will increase your ability to hire the right candidates for the right jobs.
Taking steps now to retain your best employees can help to reduce hiring costs, increase productivity, and improve employee job satisfaction. Having the right team in place can help your company grow in today’s highly competitive marketplace. Learn more about how to improve employee retention through an employee recognition and rewards program by contacting CoreCentive today.