Invest Big in Retention

The combination of several factors - on-going demand, higher than expected post-Covid early retirement (the missing 50’s), fewer than needed new graduates etc. – will see talent shortages continue into 2023 and beyond.

Against the back-drop of long-term talent shortages, an intentional retention strategy must be a key part to your overall people strategy.

Your retention strategy will no doubt aim to reduce employee turnover, boost morale and improve job satisfaction in order to hold onto your valued employees. Effective employee retention strategies incorporate a wide range of initiatives and policies that make a particular company a more attractive employer and better place to work.

Retention strategies can be broad and complex, here’s a few pointers to consider:

1.Work Life Balance

Work life balance is a crucial element to retaining your top talent. Top talent today expects more than just the ability to work remotely. They are looking for flexible work arrangements that ensure a better work life balance. A few ways that flexible working arrangements can help increase retention include:

• Increased employee loyalty
• Attractive brand and company culture
• Better employee wellness

2.Focus on Employee Engagement

High levels of employee engagement result in team members that feel that they are a fundamental part of the company, that they understand and are working towards meeting the company goals. There are simple, day-to-day actions you can take to improve employee engagement:

• Ask your employees what they need to feel happier at work and how, this will highlight actionable steps for organisational improvement. Employee surveys are a great way to do this.
• Provide feedback to your teams through regular informal meetings and more structured quarterly feedback sessions.
• Encourage your employees to share ideas and ways to innovate through frequent brainstorming sessions and by fostering an open-door management policy.

3. Training and Development

Make it a priority to invest in your workers’ professional development. Give them time to attend virtual conferences, provide tuition reimbursement or pay for continuing education.

Upskilling your employees?is especially important today as technology continues to change how we work. When people upskill, they gain new abilities and competencies as business requirements evolve.

4.Compensation

It’s essential for companies to pay their employees competitive compensation, which means employers need to evaluate and adjust salaries regularly. Even if your business can’t increase pay right now, consider whether you could provide other forms of compensation, such as bonuses. Don’t forget about improving health care benefits and retirement plans, which can help raise employees’ job satisfaction, too.

5.Perks

Perks can make your workplace stand out to potential new hires and re-engage current staff. Flexible schedules, remote work options and paid parental leave are amongst the perks many professionals value most. Read more in our article about Using Benefits to Attract, Retain and Win the War for Talent

6.Wellness

Having wellness programs that keep employees engaged can significantly improve employee retention. When employees have a positive well-being, physically, emotionally, financially, and mentally, there is contentment, security, and stability.?Wellness programs that promote a healthy lifestyle help employees improve physical and mental condition and reduce health risks.

7.Regular Feedback on Performance

Employers need to listen and have a conversation around the feedback. Bi-directional feedback will spotlight issues, and it gives employers more insight and understanding into how to retain their best staff. Feedback-driven conversations help create a more dynamic culture, and this type of mindset creates the best companies.

8.Acknowledgement

Some companies set up formal rewards systems to incentivise ideas and innovation, but you can institute compelling recognition initiatives?even if you have a small team or limited budget. Rewards are a way of externalising your gratitude for employees’ hard work and can be tangible or intangible. Tangible rewards include financial remuneration like gift cards or bonuses. These types of rewards are powerful short-term motivators. Intangible rewards and recognition will really set you apart from the crowd. These include things like managerial praise, words of affirmation, recognising employees’ accomplishments (especially publicly) and showing appreciation.

9.Effective Change Management

Employees look to leadership for insight and reassurance during times of disruption, the recent pandemic being a prime example. Clear and timely communication together with understanding and a willingness to take questions can make all the difference whether the announcement brings good or bad news.

10.Mentoring Programs

Adding a mentor to your onboarding process can enhance and extend working relationships and business understanding, particularly in a remote environment. To keep valued up-and-comers engaged, organisations must formalise mentoring programs and offer them to workers who want access to leaders and ongoing career direction. Mentoring is a popular initiative among millennials and Generation Z because their work styles often revolve around development, value and appreciation of their expertise.

For your retention strategy to be as effective as possible, the offering must be realistic, within your resource parameters and there must be accountability through delegated roles for key facilitators and managers. For continued success, feedback is crucial in either honing or replacing strategies, so they meet the needs of your workforce and so that resources are focused suitably. An effective retention strategy will reinforce a sense of solidarity and productivity within your workforce and make your company more attractive to new talent and enjoyable to existing employees. Ultimately it reflects your company’s leadership and brand so invest big in retention .

MD Comment

Retention strategy should be an integral component of your overall people strategy, yet I see so many organisations using a sticky plaster approach to retention only when someone resigns and usually by this time its too late. Yes it is time consuming, and yes it will cost money and resources but here’s the thing, from an investment point of view “retention” strategies provide greater ROI than attraction strategies and when done well will actively underpin your attraction plans. Small steps in the right direction will be noticed and received positively by your employees and will continue to be so as you develop your plan. Keep it simple to begin with, engage, engage and engage, communicate, communicate and communicate with your people and build your strategy in the knowledge that time invested here will pay dividends in long term.