Employee retention is a major cause of worry for organizations the world over. The cost of recruitment, induction and training is high, and the process is time-consuming. It takes months for new hires to be productive and almost a year for companies to recover their hiring and training cost. Research indicates that one-sixth of employees leave their jobs within the first three months of joining. In that circumstance, employee retention has become one of the most worrisome factors for any organization. Attrition not only creates initial shocks in the organization but the process of interview, and training starts all over again – and this comes at a cost. Hence, employee retention is one of the most critical and vital responsibilities of leaders in organizations.
Meaningful work
Good leaders ensure a meaningful work life for their team members. People want good quality work that will add value to their resume. Each one should be assigned responsibilities which enrich their professional journey. This is the easiest way to engage and retain employees.
Career and not merely a job
Why is every company keeping professional development programs at the center of its policy? Employees join an organization with aspirations to give their best performance and to learn more during their tenure, and hence potential for growth acts as a critical factor in employee retention. Employees must be provided with opportunities to enhance their skills and widen their knowledge. Sometimes giving them the authority to take decisions also helps in retention as they feel empowered.
Tools and learning
Organizations that provide tools necessary for employees to discharge their roles effectively succeed in retaining them longer than the ones that do not.
Regular training and skill building is imperative in ensuring the employees to do cutting-edge work. Hence, learning and development become a critical catalyst in employee retention. As long as employees learn and feel enriched professionally, the thought of leaving doesn’t come into their mind.
Goal-setting and constant feedback
An active process of goal-setting and regular on-the-job feedback keeps employees on their toes and adequately connected to the broader objective of the organization. Constant feedback ensures course-correction in real-time and doesn’t give negative surprises to the employees during the annual performance discussions.
Work-life balance
Let us pay attention to an essential component that plays a crucial role in achieving employee retention – work-life balance. What is the work-culture of the company? Do employees regularly work long hours? Employees who have control and ownership over their own lives develop a better relationship at the workplace too. People with a balanced attitude towards their life feel less stressed at work, and hence, tend to give a better output, which increases productivity not only at a personal level but in the organization too.
Job satisfaction
There is a strong correlation between job satisfaction and employee retention. Job satisfaction depends upon the amount of expectation that is there and how much of it has been met. The reasons could be personal or professional, but it is a known fact that if the employees are happy and contented with their jobs, they work with more dedication and stay in the organization for a longer duration. Elton Mayo (2003) believed that workers are not just concerned with money but could be better motivated by having their social needs met while at work. Job dissatisfaction can be resolved by initiating a path of communication from management to the employees. Workplace policies, if consistently enforced, could become another essential practice for achieving employee satisfaction, and thus, increasing employee retention.
Employee compensation
Compensation doesn’t refer to the salary of the employee, but it means the perks, incentives and other benefits from the company. Keeping wages competitive and keeping an eye on the local market, provision of excellent benefits like health and life-insurance raises, bonuses and awards are some examples of employee compensation. Such compensation, when taken care of, can play a crucial role in employee retention.
Challenges in employee retention
There can be a control in an employee quitting the organization by adopting various retention strategies, but nobody can put a full stop on it. This is so because there are multiple challenges involved in employee retention. To name a few:
- Dissatisfaction with the salary – Every employee looks forward to an increment in their salary. This becomes a severe problem when employee quotes something which doesn’t fit the company’s budget
- Better job opportunities – With the cut-throat competition in the market it becomes enormously difficult to retain efficient employees, as the competitors go a long way to lure them.
- Hiring the wrong candidate – Lies furnished at the time of interview by the candidate for availing the job become hurdles for retaining them.
- Absence of job rotation – The monotony of the same position for years without exploring new avenues create boredom in the employees. Hence, no rotation in the job becomes a big challenge for employee retention.
- Unrealistic expectations – The immaturity in keeping the expectations from the organization is yet another reason for an employee to quit the job because it is impossible to meet all the comforts and conveniences at the workplace.
Leigh Branham, CEO of Keeping the People, says that the seven unknown reasons are: the job not being as expected, people not being a good fit for the job, too little support or feedback, little opportunity for growth, feeling unappreciated, stress and overwork, and loss of confidence in management.
To conclude, it can be said that the success of employee retention efforts depends upon how well the team’s perspective has been taken care of. It is a fact that each employee is different from the other, and hence, their desires and goals would also be different. But some general expectations like being fairly treated and appreciated by the employer or opportunities for personal and career growth should definitely be taken care of. A successful employee retention program meets all these concerns.
“Your number one customers are your people. Look after employees first and customers last.” – Ian Hutchinson, author of People Glue
