3 Best Ways to Improve Employee Retention [2020]

Employees make a business work and failing to keep them is failing to keep your company alive. This is why a lot of organizations strive hard to improve employee retention. However, improving employee retention can be easier said than done. 

It can take a lot to fulfill the needs and satisfaction of the workforce. Today, it’s even harder to retain employees. While earning money is the main reason why people work, it’s no longer enough to keep them. 

Employees now value more other things over salary. If an organization fails to have what a lot of job seekers are looking for, the company can become irrelevant. Just some of what employees value more over money are:

  • Positive company culture
  • Employee benefits
  • Remote work
  • Flexible work schedule
  • Work-life balance
  • Career growth opportunities

Compared to other generations, the millennials value work-life balance the most. According to Inc., the millennials now make up 50% of the workforce. By 2025, they will make up 75% of the global workforce population.

Again, not adapting can make an organization irrelevant. It will cause low employee retention rates and the organization won’t be attractive to those who are looking for jobs. By knowing the needs of most workers, you can better attract skilled individuals and improve employee retention. 

Here are the 3 best ways to improve employee retention:

Create a Positive Company Culture

Having a strong and positive company culture is a must for an organization to become above average. It’s what separates the top companies from all the others. Having a positive company culture does more than improving employee retention. 

It affects the overall performance of a company. This is important as most employees no longer value staying at their jobs for a long period of time. According to a survey by iHire, 75% of American workers don’t stay at their jobs for over five years. 

Dissatisfaction is one of the main reasons why employees leave or quit their jobs. Company culture is linked to employee satisfaction and engagement. According to Deloitte, just 19% of executives believe that their organization has the “right culture”. 

These are the statistics about company culture:

  1. For 43% of employees, company culture is their main reason when looking for a new job. – Hays
  2. Organizations with strong company cultures experienced 400% increase in revenue. – Forbes

Moreover, businesses with a positive company culture have lower absenteeism and turnover rates. According to Don Rheem, author of “Thrive by Design: The Neuroscience that Drives High-Performance Cultures”, 

“If the workplace environment doesn’t fit with the conditions where the brain can thrive, they probably won’t hold on to their best employees for long.” Being mindful and caring for your employees is key to keeping them. 

Recognition of Employee Efforts

A lot of studies have shown the importance of employee recognition. While this may sound all too simple and insignificant, employee recognition is a major factor in employee turnover and retention rates. 

In fact, according to Gallup, lack of recognition is one of the main reasons why employees leave their jobs. Moreover, a study by Deloitte showed that organizations with employee recognition programs experienced 31% less voluntary turnover.

Recognizing your employees is something you can do right away. Here are simple but powerful ways on how you can recognize employee efforts.

  1. Saying thank you. According to Cicero Group,  half of employees believe that being thanked by their supervisors will help improve their trust and relationship with them. Another study by Reward Gateway concluded that being thanked by managers will improve the morale and motivation of 70% of the employees. Being thanked improves engagement which improves retention.
  2. Take them to lunch
  3. Give certificate of achievement
  4. Sincere hand-written notes to acknowledge the efforts of employees
  5. Impromptu time off
  6. Work-from-home day
  7. Department recognition bulletin board
  8. Wall of fame
  9. Shout out on social media
  10. Brag about them

More than building better relationships with your employees, by thanking them or recognizing their efforts, they’ll be more productive and positive at work. Gallup found that appreciated employees increase profitability by 21%.

When was the last time you recognized the efforts of your employees? Be sure to thank them and give them compliments more often. Leaders of an organization should know how to empower others. 

The importance of excellent leadership is having a positive effect on all areas of an organization. Thanking and recognizing your employees are some of the best ways to empower your workers

Have the Right Employee Benefits

Times have changed and so has the priorities of employees. While a decent salary is attractive, it may not be enough to keep your employees. To improve employee retention, you need to have the right employee benefits. 

Most companies offer more than what the law requires. Companies are not required to offer benefits such as health plans, retirement plans, life insurance plans and more. Yet, one of the common characteristics of top companies is offering generous employee benefits. 

By offering competitive employee benefits, you can have an edge over other companies. What a lot of people now are looking for are companies that offer benefits for financial security and work-life balance. 

Here are some of the most sought after employee benefits:

  • Retirement plans
  • Flexible work schedule
  • Work from home
  • Remote work

The impact of employee benefits affect recruitment, retention, productivity and employee engagement. Moreover, having ways to promote work-life balance is an excellent strategy to further boost employee retention.

By following this guide, you won’t just lower employee turnover rate but you will also improve the productivity and performance of your employees, increase your company’s revenue and you’ll also have a better reputation with your workers. 

Make a high turnover rate a thing of the past by following this guide. Improve employee retention by following these 3 best ways to improve employee retention.