Happy employees equate to better productivity, results, and efficiency for your business. Retention is equally beneficial to employees as it is for employers. With a great retention plan employees can find growth within an organization. They can also learn a variety of roles within and across their field and area of interest.
The best way to establish a unified organization is to find the benefits for both the employer and employee in terms of long-term success and professional happiness. So what is employee retention and why it is important? Companies that invest in strong candidate experiences improve the overall quality of new hires by 70%. Employee retention is the ability of an organization to retain employees. It saves businesses money and time. According to the Society of Human Resources Management (SHRM), it is more efficient to retain productive employees than to recruit, train and replace quality employees.
To further understand employee retention, it is also important to know another HR term, employee turnover, which is the loss of talent in the workforce over time. There are many reasons and factors that contribute to employee turnover. As well, an important distinction for turnover is that it can be voluntary or involuntary. Voluntary turnover takes place when the initiation comes from the employee. An example of this is an employee quitting their current position to take on another one. Involuntary turnover is instigated by the employer. An example of this type of turnover is when a company lets an employee go due to restructuring or poor performance. Pay and benefits are the most known factors, however, company culture, lack of growth, and treatment of employees play a major role as well.
Next, we will go on to discuss best ways to ensure employee retention. Let's dive in, shall we?
Make Sure Your Employees Feel Valued
Employees will stay much longer at a company if they feel that their efforts are being valued.
Studies show that 69% of employees would work harder if they were recognized and appreciated more. The strategies can range from offering bonuses to simply sending an email telling the employees how grateful you are for them and their determination for getting an important project done.
Positive words can go a long way. If your employees are happy, your customers will be happy too.
Pay Attention to Company Culture
This is an important factor many people fail to prioritize. What are your values and beliefs? What type of personnel do you want to have? Are you bringing in beliefs you care about or are you doing something because you want to show people that you have a great company culture?
The intentions behind your actions are the true result of your company culture. If you care about your employees, they will never doubt you. If you are putting actions into place for the wrong reasons, they will recognize that and will not accept your actions.
Remember to always treat your employees as human beings. Leaders have to make sure they are constantly evaluating themselves and their actions.
Provide Opportunities For Professional Growth
Despite what people think, employees do not like jumping from company to company. If the environment is positive and there is an opportunity to grow, employees are much more likely to stick around in a company long term. If an employee feels that they have been in the same role doing the same thing for far too long, it is time for a promotion. Perhaps, even change in the department. If employees depict their company as a long term place, they will be more open to learning about different functions of the company.
Realize There Are Benefits For Both the Employees and Your Employers
The average U.S. employer spends $4,000 and 24 days to hire a new worker. Employee retention will save employers a significant amount of money in the long run. As well, encouraging and promoting employees within the company to other roles is also another cost-effective strategy. The more effort you put into your employees, the more benefits you gain for your business. Employees are a great investment as they are the reason employers have a running business. Always be compassionate and kind to employees.
Employers are failing to realize the importance of their staff when it is too late. Their turnover rates are high and by the time they realize the need for additional efforts, oftentimes, it is too late. Companies lose 25 % of new employees within the first year. Implementing these four factors will help businesses avoid constant turnover. Employee experience is crucial in the beginning stages.
Do you have a supportive onboarding plan? Are you conducting consistent check-ins with your employees throughout the year? Allow HR Lab Los Angeles to support you with your onboarding, employee experience, and more! Visit our website for our full services or reach us at support@hrlablosangeles.com.
About HR Lab: Formed in 2020, in the midst of the pandemic, HR Lab is here to make a difference. At HR Lab, we work to strengthen workforce quality by improving the HR system, ensuring its ongoing relevance, and preparing employers, workers, educators, and governments to use it effectively. Our vision is a labor market that relies on the relevance, quality, and value of workforce credentials for opportunities, growth, and development.
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Disclaimer: The information in these materials should not be considered legal, accounting, or investment advice, and it should not substitute for legal, accounting, investment, and other professional advice where the facts and circumstances warrant. It is provided for informational purposes only. If you require legal, accounting, or investment advice, or need other professional assistance, you should always consult your attorney, accountant, or other professional advisor to discuss your particular facts, circumstances, business, personal finance, and investment needs.