In 2021, the quit rate for workers in the U.S. was the highest on record. 2022 is shaping up to be another year of record resignations, with 4.25 million people quitting their jobs in January alone.
As an employer, this is bad news. High employee turnover is bad for business. It can cost as much as $10,000 to replace an employee.
This is why you need to focus on employee retention. But do you know how to do that?
In this guide, we’re sharing helpful tips on how to retain employees.
Identify What’s Causing the Resignations
If your organization has recently faced mass resignations, you might be looking for a quick way to curb the trend. Unfortunately, there isn’t a quick solution that’s effective.
You need to start by establishing why the employees are leaving in the first place. That way, you’ll be in a better position to find solutions that will best address the situation.
How do you determine what’s driving your employees out of your door? The best way is to ask them.
You can introduce a questionnaire that quitting employees can use to anonymously share their reasons for leaving. Even employees who have no plans of leaving can share valuable feedback that will give you insight into the cause of the high turnover rate.
Build a Strong Employer Brand
A strong employer brand doesn’t just give you an edge over your competitors when it comes to attracting the best talent. It also makes it easier to retain your employees.
There’s a lot that goes into building a strong employer brand, and it can take time, but start by defining your brand’s core values. What does your brand stand for? The modern job seeker wants to work for companies with strong, relatable values.
Creating a positive work environment is another effective way to build your employer’s brand. If there are issues of harassment, bullying, and discrimination in your workplace, it won’t matter how highly you pay your employees — they’ll quit.
Hire Retainable Employees
The harsh truth is no matter what you do, some employees will always quit. Your goal is only to minimize the number of those who leave.
Sometimes, though, employers do themselves no favors when they hire workers who aren’t retainable. While you can’t accurately establish if or when an employee will resign, you can predict the likelihood by looking at their employment record.
If someone you’re interviewing for a role in your company has held multiple jobs in the past few years, that’s a red flag. It shows they have a habit of job-hopping. If you hire them, it could only be a matter of time before they jump ship.
As such, strive to hire people who’re more likely to stay for the long term.
Consider an applicant’s values and vision and ensure they align with your company’s. Look at the job expectations and ensure your company can meet them.
Ensure Smooth Onboarding
A new employee decides whether your organization will be their home for the short-term or long-term soon after joining. The quality of onboarding and orientation you give them goes a long way in influencing their decision.
If you don’t set up a new hire for success from the first day, they might struggle to settle in. And without the right support, they might have no choice but to quit and find a more supportive employer.
Don’t do the bare minimum when onboarding new employees. Create a comprehensive onboarding checklist for both remote and in-person employees. Encourage them to ask questions at every step of the process.
Mentorship and Training
Good onboarding will help new workers get started on the right footing, but settling in can take longer. Pair these hires with veteran workers to show them the ropes. This will help improve their self-confidence, which makes a world of difference for anyone in a new job.
In addition to mentorship programs, implement training programs.
An employee can quit their job when they feel their occupational skills aren’t adequate for certain tasks. Yes, they might have had the right qualifications and training when you hired them, but as technology advances, their skills can become outdated.
Regular training is key to upskilling your employees. They’ll become more productive, satisfied with their job, and loyal because you’re investing in their occupational development.
Plus, employees who’re adequately trained won’t get jittery about performance reviews. On that note, choosing the right system for performance management is crucial.
Be Generous With Perks
You pay your employees competitively for the work they do, but do you go out of your way to reward them with perks? If you don’t, that’s possibly one reason retaining employees is a challenge.
Let’s face it. We all love perks, whether it’s an exclusive discount at your favorite shopping store or a day off from work.
Your employer would certainly love paid day-offs, but there’s a wide range of perks you could offer. Good examples include free or discounted snacks, supplemental insurance, work-from-home options, and childcare credit. Heck, you can even throw in unlimited vacations if your business can afford it.
Every time an employee feels like quitting, they could as well remember the perks they’re going to miss and decide to stay put!
Implement a Recognition Program
Perks make employees happy, but they tend to have a short-term impact. You see, someone can only enjoy some perks for so long.
A recognition program that establishes a long-term reward system will have a profound impact on your employees. It gives everyone on the team a fair chance to compete and get recognized. This boosts morale and satisfaction, all of which help keep employee turnover low.
Know How to Retain Employees
In a competitive labor market, getting hold of your employees can be a tough ask. It’s not impossible, though. With this guide on how to retain employees, you now know the measures you should take.
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