How to Improve Employee Retention
HOW TO RETAIN YOUR BEST EMPLOYEES AND KEEP THEM FROM QUITTING THEIR JOB
In the recent years following the pandemic, the employees have become more inclined towards weighing the work-life balance. The pandemic, the global forces, the skills crisis and the recent rise in cost of living have all been the driving factors contributing towards this new shift in the world of work. While the employees have realized the significance of balance between work and life, greatly introduced by the concept of remote working during the COVID-19, the employers have to go an extra mile in devising the Human Resource (HR) policies that offer flexible time-offs, benefits and compensation that focus more on the well-being of the employees. According to EY’s Work Reimagined Survey, despite the fact that the employees feel empowered, 43% of the respondents expressed their likelihood of leaving their current employer in the next year. The money compensation is their biggest concern when considering the new opportunities available otherwise.
Furthermore, the employees, in the recent years, are looking for the intangible benefits combined with the pay rise. The work-life balance, office environment, employees’ social events and flexible work incentives are all considered necessary in the recent times. For you as an employer, it is essential more than ever to ensure retention of skilled employees since there are costly implications for finding substitutes and then training them, while keeping the disruptions to the work to the minimum. There are several steps that you, as a business leader, can take in order to retain your best workforce.
Let us now have a look at the underlying reasons for the employees quitting the jobs.
Why Do Employees Quit their Jobs?
The Global Workforce Hopes and Fears Survey, Irish Report 2022 elucidates the different factors responsible for employees quitting in Ireland.
The workers who possess the specialized skills feel empowered and are ready to switch their existing employer in order to explore the market for better opportunities. More than 60% of these skilled people are looking to ask for a pay rise in the next year and around 20% are extremely likely to leave the current job.
Another important factor is the scarcity of skilled employees that gives the skilled workers a further edge to negotiate with the employers on terms that are favorable to them. Though the business leaders are investing on improving the skills set of their workforce and enhancing the use the technology, the proportion of employers doing this is still quite low.
The survey highlights at a glance:
Now let us look at what factors should the business leaders consider when defining their workplace policies to promote retention of happy and satisfied employees.
Ways to Retain Your Employees
- Assess and Improve Upon the Rewards Policy
While wage / money compensation forms the core of a satisfactory package for the employees, it is important to incorporate both the tangible and intangible factors into your rewards policy. This means including things like flexible benefits, training and professional development opportunities, recognition of achievements and freedom and autonomy.
- Incorporate the Wellbeing Strategy as Part of the HR Framework
The Irish Examiner reported in November 2021 about the fact that half of the full-time workers in Ireland are experiencing a burnout, resulting in an increased number of referrals to occupational health relating to mental health issues. Therefore, it is extremely essential to cater to the wellbeing of the employees at work.
- Hybrid Working Model
This has specially come into practice during the pandemic and has continued to be the model for many employees. If your company still resorts to the full-time office working, it is time to consider a flexible model where employees are given a combination to work from home or remotely and in the office. Use of technology augments to implement any such hybrid model effectively.
- Invest in Trainings to Build Up on your Organization’s Human Capital
Trainings and professional development to upskill the employees is crucial in helping them climb up the success ladder within the organization and keeps them from the thought of looking for favorable prospects elsewhere. This is a cost well-spent on your workforce while defining clear career paths for them and helps to avoid hiring costs and disruptions to your business caused by switching of unhappy but skilled employees.
- Implement Feedback and Review Systems
Ineffective and insufficient communication between the employers and their staff is one of the leading factors contributing to frustration and therefore resignation. An effective two-way feedback and review system ensures that policies are not imposed onto the employees rather they are consulted and engaged in the process whether it relates to their individual career growth or the growth of the business.
- Clear Communication from the Beginning
While clear communication is essential at later stages of the employment, it should be considered right from the beginning at the time of hiring the employee. The hiring professionals and the relevant department of the company should collaborate together to develop the job descriptions and future expectations from the employee. These should be communicated to the candidate at the time of hiring so that there are no surprises left for a later time, which is when the employees get frustrated and over-burdened resulting in quitting the job.
The world of work has changed drastically during the last few years with the concepts of remote working, work-life balance, empowerment and wellbeing kicking in. The employers need to address these to help the employees feel encouraged and engaged at the same time.