Learning how to retain employees is often one of the most important tasks for managers and HR professionals. Increasing employee retention can help companies reduce costs, build a stronger corporate culture, and create a stronger and happier workforce. If you work in a leadership position or in HR, it may be beneficial to learn more about retaining key employees.
In this article, we explain why employee retention is important, describe how to retain employees using 10 effective strategies, and provide additional tips to help you build a stronger workforce.
Why is employee retention important?
Here are some key benefits of retaining employees:
Stronger Workforce:
Retaining employees allows managers and supervisors to invest in their team members and help them become more productive employees. When employees stay with the company for a long time, they often take on more responsibilities, seek professional development, and help the company grow.
Increased Productivity:
Instead of spending time searching for and training new employees, managers and supervisors can focus on helping current employees be more productive. Stable employees know what to do and how to do it, providing a strong foundation for progress based on institutional knowledge and advanced skills.
Improved Morale:
Employee retention strategies are designed to increase employee happiness and job satisfaction. Employees who are happy at work are often more willing to work towards the company's mission and contribute to creating a positive work environment.
Cost Reduction:
Hiring and training new employees is often more expensive than providing development opportunities for current employees. Consider offering educational stipends, on-site training, conference options, promotions, and/or additional benefits or perks to your current employees.
How to retain employees
If you want to retain more high-performing employees within the company, it is important to start by creating an effective employee retention strategy:
Create an Engaging Onboarding Process:
During the onboarding process, seize the opportunity to make a positive first impression on the new employee. Create a process where new employees comfortably adapt to the workplace. You can do this by creating direct training materials, providing support and guidance, and explaining how the company operates. Introducing new employees to others in the office can help them feel part of the team immediately. Taking them out for a team lunch is another way to make new employees feel welcome and help them quickly get to know their colleagues, thereby enhancing employee retention.
Pair with a Mentor:
A strategy of pairing employees with a mentor can start during the onboarding process. It's a good way to help new employees feel welcome and know they have someone to turn to. However, mentoring should not only be offered to new employees. Everyone can benefit from the mentor-mentee relationship, whether by helping others or knowing they are supported by more experienced colleagues, which helps with employee retention.
Schedule Employee Performance Reviews:
Employee performance reviews are a great way for employees to grow in their roles. Meet periodically to discuss strengths, weaknesses, and career goals. By knowing their goals, you can help them continue to progress within the company. Providing positive feedback during this meeting can help employees feel valued and satisfied at work. If the budget allows, use the performance review as a time to offer a raise or bonus to the employee.
Show Appreciation:
To retain employees, when an employee does a good job or recently achieved a significant accomplishment, appreciate their hard work. You can show your appreciation by telling them directly or making a company-wide announcement. When employees feel their efforts are noticed, they are more likely to continue working hard and stay with the company.
Encourage Work-Life Balance:
A healthy work-life balance is when employees can effectively manage their work and home lives and feel they have enough time and energy for both. This element has become increasingly important for many employees. You can help employees achieve a more balanced work-life experience by giving them more flexibility in their schedules.
Consider allowing employees to come in late and make up their work if they need to leave for an appointment. If possible, give employees the option to work remotely. Employees who feel ill but can still work or those who have long commutes may appreciate the opportunity to work from home occasionally. Helping employees maintain work-life balance shows you value their well-being, and they are more likely to stay with the company when they feel they have a manager who cares about them.
Provide Professional Development Opportunities:
Helping employees achieve their career goals can influence them to stay with the company because they see it as a place with many opportunities. You can help them by spending time training and mentoring team members. Offer your team additional training or educational opportunities, such as funding certifications, sending them to conferences, or providing educational stipends. Update equipment so colleagues can learn using the latest technologies. When possible, promote from within. By investing in your team, they can develop their skills and take on more responsibilities, both of which can lead to improved employee retention.
Offer Competitive Compensation and Benefits:
In a competitive job market, it is essential to reward your employees with adequate compensation and benefits when you can. If you cannot afford salary adjustments, consider offering some type of bonus, adding a retirement plan, or enhancing health care benefits. You might offer compensation for fitness classes, schedule talks about stress management, or provide retirement planning services. All of these will help increase job satisfaction among employees and encourage them to stay with your company.
Implement Team-Building Activities:
When employees feel more connected to each other, they can look to each other for support and guidance, inspiring them to stay with your company longer, meaning employee retention. To help employees connect, encourage collaboration among your team members. When employees can work together harmoniously, they may feel more relaxed and happy at work. Help everyone get to know each other better by facilitating team-building activities. Plan team lunches or optional after-work events for your team. The more people learn about each other, the better they can work together.
Offer More Perks:
Various perks can boost employee morale and keep your employees engaged. Flexible schedules, paid parental leave, and remote work options top the list of the most valuable perks. While it's important to consider these, employees also appreciate smaller perks. Casual Fridays, discounts on sports events, or even occasionally bringing in a box of donuts can help lift morale in the workplace.
Keep Communication Lines Open:
To retain employees, know that an open-door policy lets employees know they can communicate with managers with ideas, questions, and concerns at any time. As a manager, it's your duty to ensure that your team—whether on-site or remote—feels connected to the company and each other. This sense of belonging and being heard can go a long way towards employee retention.
Top Employee Retention Tips
It's important to choose employee retention strategies that fit your workplace. When implementing your strategies, use these tips:
Seek Employee Feedback:
To retain employees, send anonymous surveys to learn what your team members like and dislike about working at your company. Ask them about changes they would like to see in the workplace. Also, ask them to list any incentives that would help them feel more satisfied and appreciated and stay longer. By directly identifying team members' sources, you can tailor your employee retention strategies more effectively.
Create a Better Work Culture:
You can retain employees by promoting well-being and kindness to create a better work culture. When people feel you value their well-being, they may feel more comfortable coming to you when they feel burnt out. Give your team opportunities to relax and recharge after a challenging task, and let them know it’s okay to take mental health days or breaks when needed, which strengthens employee retention.
Be a Mentor:
Provide support to your team and guidance for their careers. Give them opportunities to take on more responsibilities when they are ready. Ask them what they would like to improve and then come up with ways for them to achieve their goals. Share your career journey with your team, including your successes and failures, which will naturally help you retain employees.
How DocSuite HR Helps You Retain Employees
DocSuite HR facilitates comprehensive HR management, allowing companies to track employee information, including contact details, resumes, training, and performance. It also helps organize recruitment processes, manage payroll and benefits, and provide training courses. Additionally, DocSuite HR offers features for tracking attendance, managing performance, and developing human resources, improving employee retention and satisfaction.
Some of its key features that help retain employees include:
Organizing Personal and Professional Information:
It helps store and manage employee information such as resumes, contact details, and previous work records in an organized and secure manner, aiding in employee retention.
Facilitating Recruitment Processes:
It allows companies to post job openings, receive applications, and manage recruitment processes through a single system, increasing the efficiency and speed of the hiring process and enhancing employee retention.
Managing Payroll and Benefits:
DocSuite HR can track salaries and bonuses and manage benefits such as health insurance and vacations effectively.
Providing Training and HR Development:
It offers a way to identify training needs for employees and organize training courses, helping develop their skills and enhance their performance.
Tracking Attendance:
The system can log work hours and provide reports on attendance, making it easier for HR management to take necessary actions to improve workplace discipline.
Managing Performance:
Doxcsuite HR can track employee performance, conduct regular evaluations, and provide constructive feedback to improve individual and group performance.
Creating a Comfortable Work Environment:
By providing easy communication tools between employees and HR management, the system can help create a positive and supportive work environment, increasing employee satisfaction and contributing to retention.