Employee retention refers to the organizational practices used to retain their best employees for a long period. Organizations invest time and resources to train and develop new employees and bring them up to speed with the organization. It becomes a waste of the company’s resources if the employee leaves after the training is complete. Hence, companies take additional steps, develop policies and strategies to keep them and ensure that they stay for a long period.
Human capital is the most important asset in any organization. Companies spend a considerable amount of time and resources on recruitment and training employees. These turnover costs become expensive for the companies in the long run. Further, when there is a competition for talent, it is important that companies don’t lose their best employees. There are additional losses to the company too, in the form of low employee morale and productivity, poor engagement and so on.
Investing time and money in employee retention tactics has great benefits, according to the Society for Human Resource Management (SHRM). It improves employee productivity, motivates employees, and improves the quality of work. Employees would feel a sense of pride and belongingness towards the company, and will be motivated to perform better. They would truly want to be a part of the company’s growing family.
It is important to know that there’s no one size fits all strategy. Every employee is different, but all of them would like to be appreciated for their work. They are looking to learn more, feel challenged, and looking for a healthy environment to grow. Ultimately, employers should devise ways to keep your employees happy and instill a sense of belongingness. Here are some tips that can help:
Have a well planned, thoughtful onboarding and orientation process for the new hires. Let the new hire know that you have planned for their arrival and have clarity on how you’d like to do the orientation process.
Pair your new hires with a mentor.Mentors help the employees get the hang of the place, offer guidance wherever necessary, and make them feel at home
Offer competitive compensation. In a competitive labor market, it is not just about the salaries you pay. It is also about the bonuses, benefits, time offs, and the retirement plans.
Frequent one-on-ones and performance reviews. Give timely feedback to your employees and give them the opportunity to speak about their concerns. Discuss their goals and help them chart a career path.
Prioritise employee development and training. Some companies send employees abroad for events and seminars, or reimburse their tuition fees, or provide options to enhance their skills.
Flexible work timings. Some organizations are flexible when it comes to working hours. They may have fixed working hours, but do not matter when you log in, as long as you finish your work on time. Some might have hybrid, or work from home work model as well.
Have rewards and recognition system. Appreciation always brings more. When appreciated, it pumps your employees to do more outstanding work.
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