Best Strategies on Employee Engagement in Improving Talent Retention
10/5/2022 | By Marella Gimenez
The ability of a firm to maintain its employees under contract results in a more reliable, effective workforce. Companies that are serious about keeping their best employees create policies and initiatives designed to lower employee turnover. Those who are successful in generating high staff retention rates are in a better position to accomplish corporate objectives and attract new personnel.
A company's ability to hold on to its talent, particularly in these tight hiring markets, has profound implications for its ability to operate at a high level, free from the disruptions that employee turnover brings. A well-established, well-executed employee retention strategy is a key competitive differentiator.
However, 77% of the causes of employee departures are avoidable, therefore HR is not helpless in this regard. Finding the problems that might be causing employees to leave and fixing them quickly is the key.
a. Why is talent retention important?
A well-thought-out plan for keeping the valuable people your company spent time recruiting, onboarding, and training is part of a comprehensive human capital management strategy. Business logic dictates that replacing an employee can cost anywhere between one-half and two times that person's annual compensation. Employee satisfaction, company culture, and other intangible expenses all add up.
Companies clearly pay a high price when employee retention is not prioritized. But those who make investments in enhancing staff retention and reducing turnover risks benefit greatly. Sales have increased, productivity and work quality have improved, and staff morale has increased.
b. The Great Resignation
"The Great Resignation." refers to the high rate of resignations among workers that began in 2021, when there was a high demand for labor and a low unemployment rate, even as immunizations lessened the intensity of the COVID-19 pandemic.
Since employees sometimes leave their employment after accepting a better offer elsewhere, the decline in hiring for new roles was mostly mirrored. In the midst of the economic unrest during the start of the epidemic, many people undoubtedly postponed a planned exit, whether to launch their own business or for another reason.
With the introduction of COVID-19 vaccines and the ensuing economic recovery, hiring has increased, even as people who had put off quitting for various reasons now feel confident in moving forward.
The sectors with the greatest resignation rates in March 2022 were retail trade and lodging and food services.
Although it was down three months earlier, the industry with the highest rate of job opportunities was likewise the one providing lodging and food. The next topic was healthcare and social aid.
Some have hypothesized that additional factors related to the COVID-19 pandemic may have contributed to the rising quit rate. Here are some of the…
c. Common reasons why employees leave
- Some employees made changes to their priorities in life as a result of the pandemic, reducing their working hours or quitting their jobs altogether.
- Following the introduction of remote work in 2020, employers insisted that employees return to the office.
- As more options became available, employees were compelled to leave due to mistreatment by customers and employers during the epidemic.
- The labor market is competitive because the labor force participation rate has taken a long time to rise from epidemic lows.
- As schools transitioned to online learning, some people lost their jobs due to their inability to find childcare, while others did so because they refused to comply with COVID-19 immunization requirements at work.
Best Strategies to Improve Employee Retention
Managing employee retention is taking deliberate measures to keep employees motivated and concentrated, so they choose to stay employed and contribute to the firm completely.
A thorough employee retention program can be extremely effective in luring in and keeping essential people, as well as in lowering turnover and its associated expenses. Each of them has an impact on the productivity and overall success of an organization.
Retaining a competent employee is more efficient than finding, hiring, and onboarding a replacement of the same caliber. Let us take a look at some of the best strategies to improve employee retention.
1. Proper Onboarding & Orientation
New hires run a high risk of disengagement if they aren't given the tools they need to succeed in their new position. The scarcity of pertinent work tools is a high turnover risk.
This reason makes onboarding a crucial component of employee retention.
The correct onboarding program is a crucial component of an employee engagement plan. It provides brand-new workers with the resources they need to succeed right away. It is simpler for people to get involved with their job, the team, and the business as a whole, when they have everything they need to succeed.
Ensure that new team members receive thorough training on everything they need to know to succeed in both their new responsibilities and at your company. They are more likely to succeed if you provide them with greater resources from the start. And the more effective they become in their new position, the greater their likelihood of remaining in their new position.
2. Company Benefits (salary, hmo etc.)
Paying your employees appropriately will provide them plenty of motivation to stay on the job even though a higher wage may not always be the main factor in someone looking for a new position. Audit your remuneration to identify and address any pay disparities, especially for women and employees from underrepresented groups, including new moms.
Consider giving staff incentives, work-from-home stipends, or assistance with paying student tuition in addition to revising your total compensation plan. Benefits like these encourage loyalty and help workers feel valued.
Strong mental health benefits are one way you can show your staff that you care, as the pandemic has been difficult for everyone. Employees between the ages of 18 and 29 think they'd be more likely to stay at a firm that offers top-notch mental health resources, according to a 2021 survey.
3. Company Culture
Employee engagement and retention are directly correlated with your workplace culture. You have to promote an environment at work that matches your needs. Therefore, you must promote a workplace culture that promotes, supports, and drives people to do their best work if you want a more engaged and long-lasting staff.
Engage your staff and give them a sense of purpose so that they understand that whatever part they play in your company, they help you achieve your objectives. You want to foster a sense of belonging, much to how the culture of the average Filipino workplace operates.
4. Training & Development (career growth)
Support and growth opportunities are crucial but sometimes absent components in retention efforts for remote workers. Moving to a higher paid job, Covid burnout, and a lack of opportunity for career advancement were found to be the top three reasons why people left their positions, according to a study of employees.
Offer remote workers the same or comparable training and development opportunities as you would for those working in the office if you want them to feel appreciated and like an equal member of the team. It can be challenging to offer the same face-to-face mentoring, but you can create complementary programs that integrate video coaching, online learning, and in-person classes so that those who live nearby can attend training sessions and programs.
No matter the accomplishment, whether it's finishing a big project ahead of schedule or celebrating a five-year work anniversary, employees want to be acknowledged for it. A poll found that 68% of employees believed their organization's recognition program had a positive impact on retention.
6. Work-Life Balance & Flexibility
Work-life balance is now job applicants' top goal, even above excellent pay and perks, according to a 2021 LinkedIn study. Workers who are overworked and stressed out are frequently tempted to hunt for new employment.
Encourage workers to avoid working long hours, take extra vacation time, and switch off their email after hours to prevent the temptation to answer. This will help them maintain a healthy work-life balance.
The final fact is that staff retention is greatly influenced by employee engagement. Therefore, start engaging your employees right away if you want to lower your turnover rates and keep them!