Well if you are reading this post then I assume that you would have reached a stage in your career where you would be in a position to manage people. To be effective leaders you must have the ability to retain your employees. Most of the leader’s face problem in retaining employees which leads to 25 – 35 % loss of the company and if in case the top talented employees switch their job then the percentage may rise up to 40.
In this article I will be telling you employee retention strategies that have worked for every single leader in the corporate world.
1 – Why Employees Leave?
Before jumping into how to retain employees first understand what are the major reasons that leads employee to switch their job.
· Lack of Trust and Autonomy
Keeping good employees begins and ends with trust. Leaders who trust their employee often mismanage in retaining employees. High performing employees are like free bird. They love to work under leaders who trust their decision and have faith on the decisions made by the employee.
· Not Being Appreciated
Appreciation is one of the essential things that motivates an employee to strive hard for his work but negligence in the importance of true appreciation costs companies a lot. This lack of appreciation can come in many forms including being underpaid, not receiving positive feedback for a job well done, broken promises, valid complaints that are shrugged off and reasonable change suggestions that go ignored.
· Unhealthy Work Environment
Unhealthy work environment can be a resultant of various things such as poor infrastructure, lack of respect, poor communication. It leads to a toxic and a negative environment. It can make them question their worth and job security that would always make them feel like they would be happier in another company. Your bonus and perks cannot stop the employee from leaving if they feel a toxic, negative and stressed environment.
· Seeing good employees leave
“If he can then I can too”. Seeing their top co-workers leave the organization creates a sense of distrust among the employee’s. Often employees are motivated as well as demotivated by seeing their co-worker and seeing them leave creates a space to think about switching their jobs too.
· Less Pay Scale
Herzberg divided this theory into 2 factors : Motivators (Motivating factors) and hygiene (Demotivating factor). Paying less salary comes under the second factor i.e. hygiene. Paying less leads to de-motivation among employee’s but according to Herzberg it doesn’t qualify to be the most important factor in the race.
2 – Why Employees Stay?
· Orientation and On boarding
An employee’s perception of an organization takes shape during the first several days on the job and continues throughout their first six months, with 90% of employees still deciding whether or not to stay at the organization during this time. It is in the best interest of both the employee and the organization to impart knowledge about the company quickly and effectively to integrate the new employee into the workforce. In addition, providing continual reinforced learning through extended on boarding over the first year can increase new hire retention by 25%. By implementing an effective on boarding process, new hire turnover rates will decrease and productivity will increase.
· Career Training and Development
While dealing with employee, don’t forget you are dealing with people having emotions, aspiration and dreams. Your top employee always aspires of improving themselves as individual therefore providing training and development keeps the thought of switching company away from their head.
Helping them explore further career opportunities helps you to gain trust, increases faith and bridge the gap among each other.
· Compensation and Rewards
Who doesn’t like rewards? Remember being in school and your teacher used to reward students who performed well. Didn’t it motivated you to strive hard for that reward? The same thing works in the corporate culture too. Compensation and rewards make an employee feel special, builds loyalty and motivates to strive hard for the success.
· Include Employees in Decision Making Process
Well this may sound a bit weird but it shows amazing results. Have meetings with your employee’s ask for their suggestions. Listen to them and consider their decisions (If possible). Now it is not possible to consider all their thoughts in the decision-making process but pretending to have considered their thoughts works well. All you need to do is to listen them very carefully during the meeting and trying to explain the pro’s and cons to a certain extent. Believe me, involving your employee’s in decision making process works like magic.
· Identifying Top Talent
Your retention rate doesn’t needs to be 100% to be successful. Categorize your employees into 3 categories High performers, Average and Low Performers. Nowadays leaders are using Backlsh to identify and categorize employees based on their skill set. Keep your primary focus on your High performing employees and secondary focus on Average employees. Convert your average performers into top performers by proving them with Coaching and training. Build trust and gain loyalty of your top performers as well as average performers. Be free to fire your low performing employees who doesn’t have the potential to move up the ladder.