Employee turnover can pose a significant expense for your business, costing you nearly 20% of the annual salary for a mid range position. In addition to cutting into your company’s profits and hampering overall efficiencies, the additional time spent to attract, recruit and onboard new employees could drag on for months. Plus, this extra work could increase stress levels throughout certain departments or even across your entire workforce, creating bottlenecks and an elevated pressure to perform with limited resources or time.
So, what’s the best way to avoid the aforementioned altogether and increase employee retention? We’ve rounded up five top tips to increase satisfaction among your current employees and attract emerging talent.
1. Focus on company values instead of company culture.
How many of your employees work remotely? Is it just one employee or is it the majority of your workforce? The fact is that retaining even one remote employee means you must reconsider how you communicate and build your company’s values. A more traditional office format lends itself to a “company culture,” but some of those conventional methods may not transition well in a digital working environment.
If transitioning to a fully remote or hybrid work environment, consider how best–given your industry, number of employees and employee’s day-to-day schedules–to encourage teamwork, camaraderie and conversation that gets to the heart of your company’s core values.
Also, trying to move every element of your previous office environment online may not work. Where continuous feedback and daily touchpoints drove efficiency and morale before, employees may feel Zoom fatigue or burn out if the work day is a constant string of video calls. In times of transition, remember that your company’s values are what a company culture is built upon. Look inward and think creatively on how you can reframe the working day to incorporate those values virtually.
2. Cultivate strong relationships from day one.
Fostering strong interpersonal relationships and encouraging active communication is foundational to building a healthy working environment. When employees feel like they belong within a team or company, employee retention swells. According to a recent article in Harvard Business Review, high belonging was linked to a whopping 56% increase in job performance, a 50% drop in turnover risk and a 75% reduction in sick days. When employees feel isolated or without a sense of belonging (whether working virtually or in person), they’re less likely to proactively engage.
A commitment to diversity and inclusion is another vital component in nurturing trust and safety in the workplace. Prioritize hiring strategies, team training or HR-led functions that underscore your company’s commitment.
Specifically, company leadership should ask themselves:
- Does our company jargon, stated mission or current practices exclude or isolate current or prospective employees?
- Do we need to introduce new hiring, training or continuous education classes to demonstrate our commitment?
- Is everyone welcomed and encouraged to speak in meetings? Who are we leaving out and how can we do better across each department or company wide?
3. Offer competitive benefits.
What’s a surefire way to ensure your employees are satisfied and make your company the place they want to be? Offer a competitive benefits package with a salary to match. Remember picking the right insurance broker is key to designing the right benefits package that will attract and retain employees.
When it comes to wages, you don’t need to offer the absolute highest in your area, but in order to retain your top employees it should be comparable. A competitive salary allows employees to know they’re hard work is valued and appreciated.
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4. Nurture leadership and promote from within.
A post from the Harvard Business School named the following six traits as those that set business leaders apart:
- They clarify the complex.
- They embrace new thinking.
- They balance confidence and humility.
- They unite employees around a mission.
- They set high standards.
- They avoid distractions.
Employees are more likely to follow in the footsteps of company leaders, not bosses. Effective leaders can drive employee engagement by encouraging open communication and collaboration without fear of embarrassment or criticism.
5. Bolster your company’s reputation.
At the end of the day, you want your employees to be proud of the work they do and the company whose success they support. Retain and inspire employees in your company by:
- Giving back to the local community
- Organizing team-building events outside of work
- Fostering a positive work-life balance
- Donating to charities and other meaningful organizations
Looking for similar content? Check out our guide on redefining work-from-home benefits for employees, or click here to see what’s new on the Mployer Advisor blog.