Employee retention: What is its definition? and how can you improve it - Emptor
Hiring the perfect candidate in the post-pandemic context and after the Great Resignation is a titanic task. We are currently in a historic moment where finding and retaining the best talent is not an easy task due to the growing war for talent and an infinite supply of opportunities for the best candidates.
The current trend invites organizations to structure strategies and resources that make the attraction and retention of talent that helps achieve the companies’ objectives thrive. The scarcity of talent, especially in highly skilled and technical fields, brings us closer to having increasingly sophisticated tools to face this growing challenge.
Talent retention begins with a good recruitment strategy coupled with an excellent and solid employer brand. These are two key elements to access a better opportunity to hire the best collaborators in the medium and long term.
What is employee retention?
It refers to the efforts of an organization to keep its most talented and qualified employees within the same. A high retention rate indicates that a large part of a company’s talent base has remained in the organization for a long period of time; the loyalty and commitment of employees in general comes from being treated with respect, receiving adequate compensation, promotions and career plans according to their needs.
All these elements will strengthen the sense of belonging and strengthen the employer brand (employer branding) and attract more qualified talent for key positions.
Why is employee retention important?
The cost of having a low employee retention rate, without specifying an exact number, is approximately 2.5 times an employee’s salary, according to studies. The departure of an employee can generate financial losses of more than double their salary in the form of lost productivity, as well as training and rehiring costs. If this becomes a recurring problem, there is a crisis of productivity and commitment, and the organizational culture is directly impacted.
Main reasons why employees leave their positions:
Among millennials who left their company, the reason was that they felt their professional goals were not aligned with the company and they saw a lack of growth opportunities, which led them to think they would be better off elsewhere.
The predominant reasons they mention are:
- Lack of professional development
- Lack of work-life balance
- Poor compensation
- Inadequate benefits
- Poor overall well-being
78% said they would stay longer if they saw a clear career path within the organization. 75% said they would stay longer in an organization that listens and responds to their concerns.
In general, employees are looking for:
- To be heard
- Commitment when they know they have a clear future with the company
- Flexibility and balance in their lives
- Fair compensation and recognition for their achievements
- Protection for themselves and their families
How to improve the employee retention rate in my company?
Solid employer brand or employer branding
Analyze and carefully consider what your company has to offer in terms of culture, benefits, work-life balance, location and benefits. Beyond salaries, it is the sense of belonging that must have an impact and allow your collaborators to be part of the company’s vision.
Capturing the attention of your candidate is just the beginning of the battle. The real work is to move that group of candidates through the recruitment funnel to find the ideal candidate.
The way you interview, communicate and, in general, treat your candidates can also play an important role in future employee retention. Candidates who feel they were treated fairly and with respect will be much more likely to feel loyalty towards the company if they are ultimately hired. Recruitment, in this sense, is sowing the seeds of how your new collaborator will feel about the company in the long run.
Internal policies to improve talent retention
Now that you have managed to have your new collaborator be part of your company, this is where most of the employee retention work begins. Your candidate is now a team member and will expect your company to fulfill all the great promises that your employer brand conveyed to them.
Remember, your new employee will want to feel like part of the team, they will want to be committed and, eventually, they will want to know how they can advance and have a greater impact on the company.
Conduct surveys
An excellent way to ensure that your new collaborators (and the more experienced ones as well) are satisfied in their positions is to keep open lines of communication with the team. Keep a pulse on the morale of your workplace through surveys.
Constant feedback
Invite managers to meet regularly with their teams to discuss their development, concerns and aspirations. Make sure your employees feel the company is fulfilling its promise and, if they don’t feel that way, take appropriate action.
Here are some policy changes suggestions that can address many of the main desires of employees and ultimately improve your staff retention rate:
- Work with your employees to create and commit to a professional growth plan. Trace a joint plan and involve them. Employee retention improves when companies offer vertical movement.
- Encourage and fund professional development and continuous training to facilitate your employees’ growth plans.
- Initiate a policy of constant and honest feedback from all levels of the organization.
- Empower employees to speak their minds if they have a concern, giving them more ownership over their work and the direction of the company.
- Recognize employee achievements. When an employee goes above and beyond for the company, reward their efforts.
- Organize regular team events and informal meetings. This will help foster a sense of belonging and community.
Frequently Asked Questions
Q. What are some strategies to improve employee retention?
A. Some strategies to improve employee retention include offering competitive salaries and benefits, providing opportunities for professional growth and development, creating a positive and supportive work environment, recognizing and rewarding employee contributions, and fostering open communication and feedback.
Q. How can I measure employee retention?
A. Employee retention can be measured by calculating the organization’s turnover rate. This is typically done by dividing the number of employees who leave the organization in a given period by the average number of employees during that same period. Other metrics that can be used to measure employee retention include employee satisfaction surveys and employee engagement scores.
Q. What are some common reasons why employees leave an organization?
A. Common reasons why employees leave an organization include lack of professional growth and development opportunities, low salaries or benefits, poor work-life balance, negative work culture or management, lack of recognition and appreciation, and a better job offer from another organization.
Q. How can I address employee retention issues?
A. To address employee retention issues, it’s important to identify the underlying causes of turnover and develop targeted strategies to address them. This may involve conducting exit interviews with departing employees, improving communication and feedback mechanisms, offering more competitive compensation and benefits, creating a positive work culture, and providing opportunities for professional growth and development.
In your company, how do you strengthen employer branding and employee retention? Share with us on LinkedIn and follow us.