Staff retention is a problem being faced by all businesses around the world, irrespective of their size or location. Today, labour markets everywhere have become extremely competitive. As a result, most businesses are experiencing high employee turnover. It’s true that in recent years the supply of skilled and competent potential employees in labour markets around the world has increased manifold, which has made it fairly easy for businesses to take their pick. But there’s also no denying that retaining employees once you hire them has become equally difficult.
Yes, making your employees stick around for a long time may be difficult, but it’s not impossible. There are lots of strategies that businesses around the world use to keep their employees happy and satisfied in order to ensure that they stay with them. And it doesn’t matter whether you own and run a small business or a large one. Such staff retention strategies, if employed correctly, can greatly minimize employee turnover and the associated cost in time and productivity. Here’s a brief overview of staff retention strategies used by businesses around the world . . .
Payment of Market Rates
An extremely important strategy for retention of employees is to ensure that their compensation levels are in accordance with the prevalent market rates. Money makes the mare go! Studies have shown that the most important factor in employee turnover is the level of employee compensation. And it’s not only entry level workers who are changing jobs frequently, a large number of experienced employees—attracted by lucrative hiring incentives—are also doing so. James Kinney, the Vice President and CIO of Krafts Foods says, “Experienced employees are hitting the street, looking for more lucrative packages.”
Businesses conscious of their employee turnover rate pay special attention to making regular revisions to their employee compensation plans in light of the prevailing market rates.
Encouragement of Employee Involvement
One of the most effective employee retention strategies that don’t even cost businesses monetarily is encouraging employees to take part in the organisation’s reinvention. This allows employees to feel that they have a share in the company’s success.
Encouragement of entrepreneurial ideas from employees goes a long way in making them feel that they mean something to the business they work for. Businesses around the world are developing strategies to increase the involvement of employees in the reinvention of the organisation, as well as to foster business ideas from them.
Personal and Professional Development Opportunities
Studies show that a vital factor influencing employees’ decisions to leave their current jobs is the feeling of not getting adequate personal and professional development opportunities. Providing such opportunities to employees is a great way of making them stay. In fact, lots of businesses around the world are heavily investing in programs aimed at aiding the personal and professional growth of their employees.
Open Door Policy
More than ever, businesses around the world are implementing open door policies in an effort to improve retention of employees. In fact, many businesses nowadays encourage their employees to share all sorts of workplace complaints, concerns and suggestions with their supervisors and managers. That’s because they have come to realize the importance of open communication between employees and management in staff retention.
Employee Retention Services
More and more businesses around the world, whether small or large, are hiring employee retention services to assist them in developing and implementing staff retention programs. Each business has individual needs and requirements when it comes to such staff retention programs. Such services assist businesses in implementing programs that best suit their needs. Such employee retention services also take into consideration factors like the size and budget capacity of businesses while designing staff retention programs for them, consequently, small businesses are also able to benefit from this great employee retention strategy.
Various Perks in Addition to Fringe Benefits
Most businesses around the world provide various perks in addition to offering lucrative fringe benefits to their employees. Such perks are an easy and somewhat cost-effective way of keeping employees happy and satisfied, as well as inculcating in them, a feeling of being important to the organisation. These perks may include flexible working hours, the option of working from home or car, extra vacation time, health club and various other discounts, errand running service, etc. This staff retention strategy is mostly employed by, and is most effective for, businesses that are relatively small in size.
Employee retention strategies vary from business to business, greatly depending on the size and nature of the business. It doesn’t matter what sort of strategies a business employs in order to retain its most valuable asset—its employees. What matters is that more and more business around the world are realizing the importance of such strategies in the retention of employees.