Employee retention means keeping your team members for a longer period. It involves using different strategies to reduce employee turnover and build a stable workforce.
Some examples of the employee retention tactics are…
Employee retention is important for various reasons. But here are the main reasons why you should consider retaining employees.
There can be various reasons why people leave their jobs. Here are the most common reasons.
Lack of work-life balance will lead to excessive workload and cause burnout.
People leave when they don’t have enough career advancement opportunities.
Lack of recognition and rewards makes people demotivated.
The most common reason is a poor workplace culture.
When there is no career development and better compensation, people leave.
Feeling disrespected at work. Nobody likes to stay in a place where they are not respected.
A higher salary is as much as career development. When the salary expectations are not met, people leave.
Bad managers play an important role in people leaving an organization.
Lack of training, lack of flexible work options, and poor communication are other reasons why people leave a company.
Conflict with the team and peers can also be a reason a person leaves the organization.
Did you know?
According to the reports from Gallup, 16% of people leave because of poor pay or benefits, 41% leave because of poor employee engagement and culture, and 28% leave because there is no work-life balance.
Employee retention not only benefits an organization but also the business owners.
Employee retention strategies are certain activities or plans that will help an organization keep its employees, especially those who play important roles in the business.
Here are some of the best retention strategies to help you retain the workforce and reduce turnover.
According to various reports, more than 90% of people want to continue working in a company if there are career advancement opportunities.
You can check what are the areas or interests they have, and create a career growth plan aligning with their skills and interests.
Always recognize your team member’s efforts and reward them.
Recognition plays an important role in motivating employees to increase their productivity and results. They will stay in the organization for a long period of time.
The major reason why nearly half of the people leave any organization is because they can’t tolerate the toxic culture.
Create a positive work culture where they can express, collaborate and co-create without being biased or judged.
By offering flexible work hours, you can make sure that your employees are not burnt out or overwhelmed to meet the deadlines.
They can work at comfort and this will automatically increase productivity. But don’t forget to hold them accountable if anyone takes advantage of it.
Society for Human Resource Management says that “76% of the companies are not onboarding their employees.”
No matter how much you are spending on the recruitment process, if you don’t give a good onboarding experience you will lose the hire in just a month.
High-quality feedback is actionable, clear and relevant.
If you offer consistent and relevant feedback to your employees, it will help them shape their skills and achieve their professional goals.
It will help them understand their strengths and areas of improvement.
Training the current employees is both cost and time-efficient than hiring a new employee and then training them. Isn’t it?
Training your employees is an investment. It will enhance their capabilities and skills, feel valued, and they have job satisfaction.
All these strategies won’t work if you don’t do them with the right intention.
Always prioritize employee engagement and people retention in your mind while creating a system and process for your business. This will help in building leaders who align with the purpose.
Having open communication doesn’t mean just among the team members.
Open communication between the employees and the management is important. Because the employees feel a sense of belonging where their insights and ideas matter.
Even though this fact is amazing, many women couldn’t continue their jobs after childbirth. In these cases, you can provide childcare programmes and wellness programs.
In India, out of the total women, 19.7% of them are self-employed, 6.8% are engaged as “casual labour” and 5.3% are “Regular wage/salaried employees”. (Source: Directorate General of Employment)
People are different and their needs and speed of improvement are also different.
Offering mentorship programs can help employees grow in specific areas. Individual attention is given to them so they want to stay in a workplace where there is a mentor to guide them.
“If you take care of your employees, they will take care of your business.”
Support your employees to have good mental, physical and financial health. Doing this will help in the long-term employment of your team.
For poor performers, begin with a transparent and constructive approach by implementing a Performance Improvement Plan.
Clearly outline expectations, specific areas for improvement, and deadlines for progress.
Provide ongoing support through regular check-ins and guidance, ensuring they feel supported rather than penalized.
Some poor performers struggle due to a lack of skills or confidence. Pair them with mentors who can provide personalized guidance and training to address their challenges.
Offer access to foundational workshops or e-learning programs tailored to their needs.
Creating a supportive environment can motivate them to improve and reduce feelings of isolation or inadequacy.
Sometimes poor performance stems from a mismatch between an employee’s strengths and their current role.
Evaluate their abilities and consider whether a different position or responsibility might better suit their skills.
Transitioning them to a more fitting role, accompanied by clear expectations and additional support, can lead to better outcomes for both the employee and the organization.
Results
Results
Results
Here are the 5 Cs to retain your employees…
To retain employees, provide clarity in these areas:
Employees thrive in workplaces where they understand the purpose, goals, and their role in the organization.
Build employee engagement and deeper connections by understanding their personal goals and aspirations:
Genuine care builds strong bonds between the team and leadership.
Create a pathway for professional growth:
Employees stay engaged when they see a clear future within the company.
Recognize and reward contributions to boost morale. Competitive compensation, benefits and fair pay encourage your employees to stay.
These are some of the fundamentals of retaining the workforce.
Consistent appreciation builds loyalty and encourages better performance.
Adopt the mindset of a mentor rather than a manager or boss:
When employees feel cared for, they reciprocate with commitment and loyalty.
Having an employee retention plan in hand will help business owners in effective staff retention.
This simple retention activity checklist will ensure your team feels valued, engaged, and excited to be part of your company!
Employee retention rate is the parameter with which an organization’s efforts to retain its best employees can be calculated.
It also refers to the percentage that indicates the employee turnover rate in a specific period.
Employee retention rate can be calculated using the formula.
(Total no. of employees remaining at the end of a particular period / Total no. of employees at the start of a particular period) x 100
A good employee retention rate is 90% or above.
Even though this may vary across a few industries, every organization should try to keep their employee turnover rate at 10% or below that.
Here is a simple example to calculate the employee retention rate using the formula:
A small retail store had 50 employees at the start of the year. By the end of the year, 45 employees were still working.
Now, let’s apply the formula.
Total number of employees = 50
Total number of employees remaining at the end = 45
| 45/50×100 = 90 |
Thus, the Retention Rate is 90%.
If your best people keep leaving, it’s not just frustrating… It’s holding back your business growth.
Focusing on workforce retention is key this year to save costs and improve productivity.
Here are a few recent stats to guide your retention efforts.
Replacing an employee costs 50-200% of their annual salary, depending on the role. (Source: Gallup, 2023)
Employees who feel recognized are 45% less likely to leave their jobs within two years. (Source: Gallup, 2024)
51% of employees are actively seeking or open to new job opportunities. (Source: Runn.io, 2024)
58% of workers cite work-life balance as a critical factor in staying with a company. (Source: Statista, 2024)
Companies with high employee retention rates see 20% higher productivity compared to those with high turnover. (Source: PeopleKeep, 2024)
Will people leave your company even after all this? The hard truth is. “Yes”! But we will at least make sure we retain the best players and that your employees think twice before leaving.
I hope that these employee retention strategies will help you to do that & stay updated by reading more business blogs…
None can destroy iron, but its own rust can! Likewise, none can destroy a person, but their own mindset can.
Former chairperson of the Tata Group
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