Employee retention is a critical issue as companies compete for talent in a competitive market. The costs of high employee turnover are immeasurable: from tangible costs such as monetary and training costs, high turnover rates are also related to overall lowered productivity, decreased engagement and employee burnout. In a competitive job market, employees are always looking for better places to work. This is most evident in the first few months of employment when employees decide if the job is the right fit for them. 31% of employees have quit their job within the first 6 months of starting. (Bamboo HR)
The costs are exacerbated when a high-level executive leaves the company: according to data on the cost of employee turnover in 2019, the cost of turnover in executive positions can go up to 16% to 213% of the executive’s annual salary. (Centre for American Progress) Therefore, many HR experts have determined employee retention to be a key to organizational success.
Here are some ways to retain talent in your company:
1. Everything Starts From Recruitment
Retention starts right from the beginning, from the application process to screening applicants to choosing who to interview. It starts with identifying what aspects of culture and strategy you want to emphasize and then seeking those out in your candidates. From the very beginning, the recruiter must be clear about the kind of characteristics that will be required for the role and the company. Recruiters also need to be honest about the challenges of the job from the very beginning: unprepared new employees are much more likely to quit.
2. Identify the Right Candidates
Everyone has different intentions and motives for finding a new job, which is often masked during a cordial interview. However, there are always some tells. Look for candidates with longevity at their previous jobs and ask about their struggles at that job. That speaks to loyalty, perseverance, and engagement. Outside of work, a person who is committed to volunteering, clubs or other activities also indicates their commitment. Most importantly, references are the key to understanding the character of your candidate. References will let you in about their behavioural patterns and the history of their loyalty and commitment. A good recruiter will then understand the candidate’s character and personality and know if they’re a good fit for the company.
3. Onboarding and Orientation
Employee engagement and retention statistics point to the first 6 months as the most crucial period for new employees. That’s why good onboarding can make all the difference. Your onboarding process should teach new staff members not only about the role itself, but also the company culture and how they can contribute and thrive. Good onboarding also includes clear discussions on the expectations and responsibilities of both parties. Transparency and communication need to be set right from the start to establish the culture with the employee and the management. A good onboarding program will build a strong foundation for long term employee satisfaction, especially with the increasing prevalence of the hybrid work model.
4. Communication
Creating open communication between employees and management can help foster a sense of community and a shared purpose. Employees need to be heard and appreciated, nowadays companies have ‘open-door policies’ in place to encourage employees to speak frankly with their managers to help employees feel they are valued and that their input is heard. This fosters a culture of trust and openness within the organization, which strengthens loyalty and employee satisfaction. Newly hired executives will need even more communication with the board as they are leaders and will greatly impact their staff.
5. Benefits
Benefits and perks play a large role in keeping employees happy, engaged and healthy. However, nowadays benefits can go far beyond basic care packages such as healthcare coverage and paid sick leave. Benefits have also been used to incentivize employees to work hard and stay longer with the company. Stocks, financial awards and other bonuses are often awarded to employees who exceed performance goals or who stay with the company for a predetermined period. Advanced benefits such as flexible work schedules and arrangements, paid leave and childcare leave will greatly decrease employee burnout, feelings of resentment and stress.
6. Employee Development
Ultimately, employees need to feel valued and nurtured by the company to be willing to stay for a long time. Experiencing growth adds value to their professional journeys. Therefore, companies need to invest in their employee development programmes to improve, enhance, refine and hone existing skills, and to develop newer ones in support of the organisation. It’s a win-win strategy. Although employee development requires significant investment (time, effort and financing) from the company, those investments will more than pay off over the longer term. Employee development goes beyond mandatory training and annual assessments: a successful development programme recognises their unique abilities and skills and focuses on getting human assets up and running to organizational standards. This may involve dialogues, communication with superiors, coaching and mentoring. When executed effectively, it will bring benefits such as enhanced employee performance, employee engagement, more resilient adaptation strategies, create future leaders, a stronger sense of company culture and of course, employee retention.
Statistics on good employee retention all point to a logical conclusion: a high retention rate means maximizing profits. Maximizing profits through a higher retention rate also means that you will be able to focus on the type of employees who stay with the company — those who have been with a company longer can have better performance and knowledge of processes. Successful retention is also a strong attribute to the organisation’s long-term stability and success, especially those in management positions. Therefore, organizations need to be wise in their recruitment strategy, onboarding and management to ensure that employee satisfaction.
At WeLinkTalent, we believe in a successful recruitment strategy that aligns with your organization’s long term goals. That is why we have developed an Onboarding Enhancement programme to build a strong relationship between your new talent and your organization. Our recruitment specialists can also discuss and refine your current hiring strategy to attract talent that will stay in your organization.
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