Employee retention has never been more important. With lower levels of unemployment today, top talent is in demand. It’s vital for companies to keep their top employees in-house.
The recruiting process doesn’t stop once you hire an employee; it continues long term. Retention is an extension of the hiring process. You need to keep your employees engaged, challenged, and satisfied with their roles.
Stand with Randstad as we discuss the important role employee retention plays in recruiting today and how to improve your employee retention rate through strategies, tips, studies, and statistics.
what is the importance of employee retention?
The cost to continuously hire and replace employees is very expensive. It’s estimated it can cost a company twice an employee’s salary to replace them when they exit the organization.
Losing an employee can also harm production when recruiting and ramping up new team members. The constant cycle of replacing team members can place a lot of stress on your team, and you could have difficulty finding a suitable replacement.
Therefore, it’s vital to focus on employee retention as an extension of your recruiting process. Once you have an employee, it does not mean they will stay long-term. Focus on keeping your current employees happy, and you will need to hire less frequently.
employee retention strategies that boost employee satisfaction
The average employee retention rate is 90%. But according to Klynveld Peat Marwick Goerdeler (KPMG), a global organization of professional firms that focuses on audit, tax, and advisory services, India has an average employee retention rate of 80-85%. The result was based on a collection of retention rate statistics in industries like retail, insurance, financial services, banking, automotive, IT, NGO, transport and logistics, and telecom.
India’s low retention rate is alarming, so it’s high time for Indian companies to focus a little more on employee retention to keep employees engaged and satisfied with their jobs. Here are some of the most effective employee retention strategies that can boost employee satisfaction:
conduct a thorough hiring process
All companies make hiring mistakes. Recruiting is not an exact science. But there is a lot you can do to ensure you make better hiring decisions. It’s okay to be picky. Be thorough. Have certain criteria you are looking for. Don’t rush into a hiring decision just to fill the spot. Think long term when hiring. Each new person who joins your organization can have a positive or negative impact. Putting more time into your hiring decision will help you hire better people.
place value on good work-life balance.
Understanding the stresses that your employees undergo and the sacrifices they make to their personal lives should be a critical undertaking for your organization. By capturing insights on how these demands could potentially force workers to leave, it allows you to develop mitigation plans.
improve workplace communication
Maintaining an open line of communication with all your employees from the top down is very important. People want to have their voices heard and want their opinions to matter. Be open to new ideas, listen to your employees when they have concerns, and be open and honest. Talk to your employees as often as you can.
offer convenience, flexibility, and perks
Employees appreciate flexibility. Life can be hectic, and trying to balance work and life is challenging. Providing convenience perks allows your employees to feel more comfortable knowing they can book a doctor’s appointment on their lunch break, work from home, or occasionally leave because their child is sick without worrying about job security.
Also, work can’t always be all work and no play. Create opportunities for your employees to socialize and have some fun. Plan lunches, events, and celebrate your successes.
relax your company policies
Relax some of your standards and policies to reduce stress and make the employees feel more comfortable in their working environment. Relaxing your dress code, for one, can have a big impact on company culture. Today, there is a greater desire to be a little less formal. People want to be comfortable at work. It’s just one of the many things employees desire when considering companies they want to work for. Other policies include social media policy and attendance.
focus on leadership rather than management
Lead, don’t manage. Collaborate with and provide support to your team rather than give orders and directives. Guide your employees and give them direction. Trust them to do their jobs and step in only when required. When you build trust and lead by example, people are more likely to follow.
focus on development, create a path forward
Because career opportunities are the No. 1 factor for employees to leave, make sure managers help their employees achieve a clear view of their future with the organization. Provide your employees with a clear plan for professional development and career advancement. Offer training and coaching, allow employees to add new skills, and ensure they are always challenged and never bored. When people get bored, they start looking for new challenges and, possibly, a different job.
constantly improve your employer brand
Establishing a strong employer brand is very important today. If you create a place where people are proud to work, you will have an easier time retaining them. You will also make your company a destination where people want to work, which will help your recruiting efforts.
stay competitive in your specific market
While money isn’t the leading reason that drives employees to leave, you also can’t reward staff significantly lower than the competition. Conduct regular salary surveys for key roles, and stay up to date about prevailing pay rates outside the company.
If you are at parity, you probably won’t lose talent for this reason. Conduct competitive intelligence gathering to ensure other components of your compensation offerings (retirement benefits, stock purchase programs, health insurance, and others) are also on par with rival businesses.
participate in improving the job market through volunteering schemes
Aside from background and experience, companies also look into the candidates’ experiences. But what if they’re fresh graduates, and nobody gave them a chance to improve their experience?
As a company, you can help improve the job market and ultimately increase the country’s retention rate by giving young people the attention they deserve. One way to do this is to conduct volunteering schemes and initiatives. Volunteering opportunities can help young job seekers navigate the job market and build their professional, teamwork, and project management skills.
Businesses can benefit from their involvement in these youth programs, as they can play a significant role in employee morale and long-term commitment to the company.
randstad’s stand in improving employee retention
Collectively, the above tips foster a strong and engaging work environment. It can help you create a place where people want to work and a place they are proud of. Work on implementing the above suggestions to improve your ability to retain your employees and ultimately improve the country’s retention rate. At Randstad, we aim to improve the inner workings of India’s job market and provide a win-win situation for companies and employees.