Every business owner wants to retain valuable employees to maintain consistent business growth. Why change anything when you have a system and a team that helps you achieve the highest level of productivity? It’s not enough to employ the best hands with outsourced solutions; you must make extra efforts to retain them.
People are not just looking for a place to work; they are looking for a place to find fulfillment and happiness.
Losing long-term and high-performing employees can disrupt your business growth and productivity. Rather than let this happen, here’s how to take control of your employee experience, help your employee feel fulfilled and happy at work, and reap all the benefits of employee retention.
Benefits Of Employee Retention
- Stronger company culture: Investing in employee retention contributes to a positive and stronger company culture. When your employees stay longer, there is less disruption and more cohesion. By aiming for work stability in your company, you will create a larger retention strategy and set your business up for success.
- Reduced training cost: recruiting, hiring, and replacing staff can be challenging. Creating a stable workforce helps you prevent this while spending less on hiring and training, giving you more resources to invest in upskilling and strategic training to help your employees grow.
- Increased revenue: retaining valuable employees will save you money and boost your bottom line. Imagine having long-term employees with a buildup of institutional knowledge. It’ll be way easier to help your team stay together, work more efficiently, increase your business performance, and ultimately drive success.
- Improved customer experience: the benefits of retaining your employees go beyond your internal operations. It’s also about your customers and how you are perceived outside the company. Having long-term client-facing and experienced front-line employees helps you build long-lasting customer relationships. The result is an improved positive customer perception and more revenue for your business.
Strategies To Improve Employee Retention
- Competitive pay and benefits: Every employer needs to continuously create a benchmark on employee salaries (including bonuses) against the going market and industry salaries for their positions and adjust them accordingly.
- Workplace perks: offering your employees perks helps to create a positive workplace that will encourage them to stay long-term. Include perks such as flexible work schedules, remote work, free food or beverages, social events, community service, and more.
- Clear communication: whether your employees work remotely or on-site, it is essential to communicate freely and openly. Your employees should feel free to come to you anytime with concerns, questions, and ideas.
- Improve your wellness offerings: the pandemic has made a lot of people realize that physical and mental health are critical to improving performance. Supporting your employees by offering physical, mental, or financial health support programs will help you retain them.
- Training and development: part of retaining good employees is helping them become the best version of themselves. Managers should help them identify relevant training, workshops, development courses, and other programs that foster employee growth..
How To Calculate Your Employee Retention Rate
Calculating your employee retention rate helps show how your employees feel about their workplace, experience, opportunities, benefits, and compensation you offer.
To calculate your employee retention rate, take the total number of your employees at a particular timeframe and subtract the number of employees that have left since then. This will give you the number of employees remaining at the end of the time period.
(total number of employees- employees who have left = remaining employees)
Your employee retention rate will be: Employees remaining / by the total number of employees X 100 = your retention rate.
Ready to discover more recruitment solutions, tips, and tricks? Book a free consultation with the Talent Gnome team today!
