10 Strategies on How To Improve Your Employee Retention Rate
Salary is still a prime motivator for most employees, practically speaking. But it is not the only motivator.
However, offering the highest possible compensation package, including benefits, may help retain people and circumvent turnover issues and losing good employees to the competitor.
Offering flexible benefits, flexible spending, medical insurance options (such as reduced premium plans for higher deductibles), or an incentive for opting out of a health plan can help your company stand out.
Be sure the company orientation session(s) is customized to suit the company’s needs and is complete and up to date. Regularly evaluate the orientation system. Up-front new hire orientation is essential, but so is continuous on-the-job training offered on site or in the form of seminars, workshops or college courses.
Continuous training helps refresh employees and re-motivate them. Training allows people to learn new things, recall what is forgotten, and allows employees to feel valued.
The cost should not be an object, as the results typically outweigh any reasonable training cost. Many companies have an in-house training department or trainer to assist with offering many ongoing training sessions and required training classes for employees, such as safety training in manufacturing.
Thinking creatively and outside the traditional box can help your company develop a system of non-monetary rewards that help motivate employees and thank them for their efforts. Some examples may be low-cost discounts and tickets to restaurants, parks, museums, and gas cards, or extremely low cost awards certificates for major or minor accomplishments.
Awards, ceremonies, and other gatherings to honor exceptional accomplishments are good motivators, and increased motivation allows companies to retain employees. Motivation typically is listed on employee surveys as an essential and expected part of their jobs, with salary sometimes listed second or third.
Many employees list co-workers as one reason they remain in their positions, on employee surveys. Fostering a positive and friendly environment will help retain employees longer. Employees interviewed felt that a safe, comfortable environment where there was little or no animosity is one reason they refrained from seeking employment elsewhere, even with companies offering higher salaries.
Encourage an open environment. Educate management about maintaining and stressing an open door policy and encourage discussion and discourse. When employees feel empowered they are more likely to turn the other way when competition comes calling with a potential career opportunity.
Foster a teamwork environment, and if possible make it a pleasant, happy place to work. Encourage professionalism but never discourage a sense of humor as long as it remains appropriate. Allow employees to get together after work or at lunch, for special occasions or just to bond.
Flexibility is Key
Especially in today’s world, employees seek and require flexibility. Offering flexible schedules or time off can help employees stay productive and still maintain their lives outside of work. Many two-parent working households, for instance, find childcare costs exorbitant.
Offering childcare or discounts on childcare, or flexible scheduling to accommodate these families is one example of how flexibility on the part of the company can send the right message to employees. Flexibility is listed as one of the most important things sought by employees, sometimes above salary.
Offer the Necessary Tools
Hiring and training are necessary but not without the needed equipment, supplies, contacts, and freedom for employees to do their jobs. Skimping on necessary equipment is never wise, nor is disallowing capable employees the opportunities to make their own decisions within reason.
Surveys Can Tell You What You Need to Know
Conduct annual employee surveys to determine the level of buy-in, positive feeling and to help gauge what is important to employees. Do not assume salary is the main reason they retain their positions, even if they are well paid.
As already stated, many employees have noted reasons they remain in their positions have little or nothing to do with money.