The increased rate of globalization and inflation together has given tough competition to companies throughout the world. Therefore, maintaining a higher profit rate is getting extremely difficult with time. Keeping in mind the increased ‘war on talent’ kind of a situation, companies are recruiting new employees at higher salaries with their ever-increasing demands. Since this attitude is pushing the money out in the wrong direction, it’s high time that businesses think about ways to retain the current employees at appropriate salaries. In short, the current situation requires companies to pay more attention to increasing the employee retention rate.
Now, what does this really mean? It means that the company should strive to retain high-quality performers to ensure adequate savings for the organization. In cases like these, the HR experts are obliged to design strategies and policies, which fascinate the staff to stay, continue to perform, and accomplish maximum profits for the organization.
Improving the Employee Retention Rate
Indeed, improving employee retention rates within an organization can have an immediate impact on the profits. So what strategies can result in employee retention? If you’re looking for some surefire ways, here’s some interesting information for you.
Benefits for Your Employees
Providing your employees’ benefits may cost some extra money right away but in the long run, it will only benefit the company. This is more like an investment that’s going to give out bigger profits in the near future. The common benefits that employees are most concerned about include:
The healthcare facility is one of the most important benefits that keep employees loyal to a company. If the company provides its employees with good healthcare opportunities, it is considered as a golden incentive. More often than not, employees turn to other opportunities due to the lack of healthcare facilities. By covering the medical expenditure, the organization can achieve better employee retention.
Insurance is another factor that keeps the employees hooked. Companies get insurance at a comparatively lower rate than private insurances. Insurance works as an important incentive too and benefits both the employees and the organization in the long run. Thus ensuring a higher retention rate.
Encourage and Aid Employees in Bettering their Careers
Regardless of the occupation, every employee wishes to stay employed by recruiters who guarantee performance-based growth. For a newbie starting small at a very basic pay scale wouldn’t work for the same organization in the long run if there’s no scope for learning and growth.
Therefore, it is important to offer employees both of these things to ensure better retention.
Skills Development Programs
According to a study, companies who offered skill development programs and similar opportunities to their employees had a 34% increase in the rate of retention as compared to companies that did not. They also conducted a survey concerning their future job description in the same company and their response concluded that 75% of employees wanted to stay in the same careers provided they got better opportunities like skills development programs to participate in.
Career advancement and professional development options is a great way to make your employees feel cared for and valued by the company. This encourages and boosts employee’ motivation and creates a healthy culture that employees enjoy working in.
Ensure Your Leadership Participates in Increasing Employee Retention Rate
One of the most common reasons employees look for other job opportunities is because they are not satisfied with the management. This includes managers, executives, or anyone in a leadership role. The managers and leaders play a crucial role when it comes to the company’s retention rate. They can make it or break it. That’s why it is highly important that they’re doing their work. They are the people responsible to ensure that the employees or workforce under them are happy and satisfied with their jobs. It is their duty to make the working environment more enjoyable as well as lucrative for the employees so they stay longer.
Another study concluded that 75% of employees left a certain company willingly because of poor management and bad employee engagement. And while there are a number of other reasons for an increased employee turnover rate but poor management is the most prominent one.
The most common examples of poor management are:
- Unwillingness to help employees when needed
- Lack of intrapersonal skills
- Not able to solve employees’ problems
- Unwillingness to help with employees with growth and education in their field
Practices such as these have a pronounced effect on the employee retention rate.
Time to Get Started on Employee Retention Rate
Not all employees are equal and it is okay to let go off some. For others, it is important to take the right measures and implement the right employee incentive programs to improve employee morale. The above-mentioned employee retention strategies are great to start with if you are experiencing high employee turnover rates. These strategies will give you the opportunity to head start towards a manageable and profitable company that employees would willingly stay loyal to.