For some, Employee Retention may seem like just another HR buzzword. We can assure you; it is not. According to the 2019 Retention Report by Work Institute, three out of four employees who left a company could have been retained. Employee retention should be a strategic imperative for any business that wants to remain competitive and agile in this VUCA (Volatile, Uncertain, Complex, Ambiguous) world we operate in. By retaining employees, you can save costs, increase productivity, and improve your company’s culture – all of which add serious value to your bottom line.
Here’s our top 3 tips…
- Hire Right
- Reward Well
- Provide Opportunities
- HIRE RIGHT
According to Gallup, the cost of replacing an employee can range from at least 1.5 to 2 times the employee’s annual salary. Which is a great reason to see recruitment as a long-term investment rather than a short-term fix. Choose to invest time and resources into hiring candidates, who not only fit the role but fit your organisation’s culture. This means that you are more likely to end up with employees who love working for your company and therefore choose to stay the course.
- REWARD WELL
Remuneration and benefits play a significant role in keeping employees engaged and productive, which means they are likely to stay longer with an organisation. Providing the bare minimum as an employer, will set the bare minimum as the standard – with your employees.
Giving your employees something more, than just on the dot market-related salaries and legally imposed benefits (such as UIF and annual leave) will help to position you as a caring employer. The reciprocation of care will most-likely translate into work and behaviour.
Going the extra mile and providing non-compulsory, but essential benefits such as medical aid cover and retirement funding, can do wonders for employee retention and the development of your company culture. These benefits address the Safety and Security needs highlighted by Maslow, on his Hierarchy of Needs below.
Image: Maslow Hierarchy of Needs / simplypsychology.org
For organizations that understand and offer employees more than the base line of benefits – it is important to scale efforts and continue to develop your employee benefit structure. If an employee feels that the organisation is caring for and considerate of, his / her basic needs – there is usually a sense of belonging and a reciprocation of care that follows. This leads to higher employee engagement and a longer, stronger employee relationship with an organisation. As employees advance to level 3 -” Love and Belonging” on Maslow’s hierarchy – employers may start to explore a whole new set of employment benefits to offer their top performing employees.
Some of which may include…
- Stock options
- Financial incentives
- Flexible work schedules
- Remote working opportunities
- Generous annual leave policies
- Employee wellness programmes
All of which, go a long way towards helping individuals feel valued and cared for within their work structure. These may also lead to extended organisational alignment and employee retention. Which is why, it is no wonder a recent global study by The Consumer Technology Association (CTA) employees ranked flexible working arrangements as 4th, among the top benefits for retaining talent.
- PROVIDE OPPORTUNITIES
We’re clearly seeing that an opportunity for employees to expand their knowledge and further their education, is primed to be one of the top employee retention strategies – for the next five years. Employees who receive ongoing opportunities to acquire new skills, report feeling valued by their employers and as a result tend to go the extra mile for their organisation.
Examples of development strategies could include…
- Job shadowing
- Leadership development
- Implementation of mentorship programs (which in turn produce future mentors)
- Involving employees in skill-challenging cross-functional projects
Investing in the continued development of your employees, not only provides your workforce with a nurtured workspace in which to grow and develop. But it strengthens your succession pipeline and provides your organisation with a more reliable and stronger tomorrow.
It might be time to shake things up a little and to invest in your team, or perhaps strengthening your employee benefits is something you’d like to work towards. Whichever it may be, we are always here to help.
We’d love to hear your thoughts and queries, so please feel free to get in touch with us should you have any.
All the best with your employee retention strategy!
Until next time…
- Work Institute / Retention Report https://workinstitute.com/retention-report/
- Gallup https://www.gallup.com/home.aspx
- Maslow Hierarchy of Needs / simplypsychology.org
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