Here's five ways to improve employee retention without draining your budget

Keeping employees at your company is an important priority because the costs of employee turnover are so high. Engaged employees are happier, healthier, more productive, and more likely to stay at their current jobs. We need to make sure all our workforce is engaged.

Here are five ways to improve employee retention without draining your budget.

1. Practice autonomy, purpose, and mastery

After employees reach a certain salary threshold, they’re not generally motivated by more money. According to author Daniel Pink, Drive: The Surprising Truth About What Motivates Us, we are motivated by three things.

• Autonomy: You want control over the decisions that drive your work. And you certainly don’t want to be micromanaged by your boss.
• Purpose: People want to be part of something bigger; maybe it’s your company’s mission or values. Make sure your employees understand what your organization stands for by making sure you communicate with them properly.
• Mastery: Give your employees feedback and the opportunity to develop their careers.

2. Recognize employees for their efforts and accomplishments

Recognizing employees doesn’t have to cost a lot. In fact, it can be as simple as a shout-out at an all-hands meeting. This makes them see that others understand how much time and effort they are putting in.

You can also send thank you, celebratory wishes, and anniversary notices via your company-wide workforce communications newsfeed or intranet.

3. Use survey tools to gather feedback and gain deeper insight into employee talents

Most organizations survey their employees once or twice a year, but regular surveys and open feedback systems can help companies build a real-time understanding of the issues employees face. Feedback and analytics from surveys can help HR and team leaders better understand the expectations and issues of the employees in their organization. By publishing surveys through workforce communications platforms, you’ll be able to ensure employees receive them.

4. Encourage cross-departmental interaction

Many executives assume employees should largely stay focused on the tasks in their own organization. However, some evidence suggests there’s more value in encouraging employees across all departments to develop an awareness of how everyone works.

The bottom line is that managers should allow and encourage interactions that aren’t necessarily strictly related to work concerns and allow and encourage colleagues across departments to communicate easily with one another. Occasionally reminding employees that it is can be productive to invest time in creating healthy relationships in the workplace is also a good practice.

5. Communicate rewards to retain employees

Many employee rewards programs are out of sync with how employees prefer to be recognized for their achievements and contributions.

Companies should do their best to tailor employee rewards to the preferences of their employees. First, be sure to offer rewards more frequently than once a year. Regular, small rewards (which may include money, rewards points, or expressions of gratitude) can have a greater effect on increasing employee engagement than a conventional pay raise.

Second, expand your definition of “rewards” beyond recognition or gifts. Don’t discount such elements as flexible schedules, overtime pay, sick leave, and professional development opportunities as ways to show you appreciate employees and the value they provide to your company. Rewards are really about showing support to employees in ways they find meaningful.

Yes, you can retain employees without spending more!

You don’t need to spend more to make sure you retain the best talent. By improving communications, increasing team building, and recognizing employees, you will build the right company culture to organically improve employee retention.

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