How to improve employee retention in 2022
...and why you should do them now.
Companies tend to overlook employee retention as a top priority until it is too late because it is not as immediately obvious as other areas like sales or marketing. But if you want to avoid high employee turnover, you should make employee retention a top priority from the start. Here are some simple tips to help you keep your employees:
1. Offer competitive salaries and benefits.
This can by done by conducting regular salary surveys to ensure that your company is offering salaries that are comparable to other businesses in your industry. Offer employees opportunities for career advancement and professional development. And create a positive work environment that promotes open communication, trust, and respect.
2. Encourage communication and collaboration.
This is crucial because it allows employees to feel like they are valued and that their voices are heard. Additionally, it creates a sense of camaraderie and team spirit that can be motivating and make people want to stay with a company. Finally, it can help prevent misunderstandings and conflict, which can lead to turnover.
3. Promote professional development opportunities.
Focus on this from day one because it will show your employees that you are committed to helping them grow in their careers. Encourage employees to take on new challenges and offer opportunities for them to do so. Make sure that your employees feel like they are a part of the team and that their voices are heard.
Be clear about your expectations and give feedback regularly.
Make sure that your employees have the resources they need to do their jobs well.
4. Support work-life balance.
This is especially important in 2022 because recently there has been an increase in the number of employees who are leaving their jobs because of this.
One way to support work life balance is to offer flexible work arrangements. This could include things like allowing employees to work from home one or two days per week, or offering flexible start and end times. Other ways to support work life balance include providing access to child care or eldercare services, and offering paid time off for employees to use as they need.
Employees who feel like they have a good work-life balance are less likely to experience burnout and more likely to be productive, engaged, and loyal to their employer.
5. Recognize and reward employee successes.
This is important because it keeps employees motivated and engaged. Recognize successes in a public way, such as at a company meeting, or in a private way, such as with a handwritten note. Without this basic acknowledgement of a job well done, it’s easy for employees to feel unappreciated and unimportant, leading them to seek opportunities elsewhere.
Encourage employees to take risks. Employees want to feel like they can take risks and experiment. Encourage them to try new things, and don’t punish them for failures.
6. Address concerns and problems promptly.
This may sound like a no-brainer but it's often overlooked. Employees who feel like their concerns are being ignored are more likely to look for a new job.
Make sure to have an open-door policy so employees feel comfortable coming to you with problems. If you don't have time to talk to them right away, let them know when you will be able to and stick to that schedule.
Finally, follow up after addressing their concerns to make sure they feel heard and that the problem has been resolved.
7. Be transparent about company plans and decisions.
This may sound counter intuitive, but employees are more likely to stay with a company that is open and honest with them, even if there are some tough decisions to be made. If you're constantly changing your mind about things or being evasive, employees will get frustrated and start to look for a company that is more stable.
Be clear about what is expected of employees and give them the opportunity to provide feedback. If you're constantly changing the rules or expectations, it's hard for employees to keep up and they may start to feel like they're not valued.
Make sure that employees feel like they are part of the team and that their contributions are valued. If you make decisions without involving employees or taking their input into account, they'll start to feel like they're not a part of the company and that their opinions don't matter.
Employee retention vs employee turnover
These two terms are very closely related. Employee retention rate is calculated as total number of employees divided by total number of separations.
Employee retention rate = Total number of employees / Total number of separations
For example, if a company has 1,000 employees and 100 separations, the employee retention rate would be 1,000 / 100, or 90%.
Employee turnover rate is calculated by dividing the number of employees that have left the company in a period of time by the average number of employees during that period of time. The employee turnover rate for a company can be expressed as a percentage or as a number.
The turnover rate for a company is often used as a measure of how well the company is doing in retaining its employees. A high turnover rate may indicate that the company is not providing its employees with the necessary incentives to stay with the company, or that the company is not providing a good work environment. A low turnover rate may indicate that the company is doing a good job in retaining its employees.
The hidden cost of employee turnover
The cost of losing a good worker is not just the cost of recruitment, it is also the cost of training, and the cost of disruption to your team.
The effect on your business can be devastating. A recent study by Oxford Economics and Unum showed that the cost of losing an employee can be over 100% of their salary.
This means that if an employee earning $50,000 per year leaves your company, it can cost you more than $50,000 to replace them.
This is a huge cost, and it is one that is often overlooked. When you are trying to save money, it is important to remember the cost of losing a good employee. It is important to invest in your employees, and to make sure that they are happy and productive.
If you do not, you will end up paying a lot more in the long run.