Great employees make great companies, but they may not stay loyal to you forever.
In fact, research conducted in 2021 found that about a quarter of Gen Zs (23%) and 13% of millennials plan to leave their employers in the next year.
What’s more, it’s estimated that the average cost of replacing a member of staff is £12,000. So poor staff retention could really make a dent in your recruitment budget.
But what can you do to stand a chance of keeping hold of your star players? Firstly, you must first understand what makes them tick.
Why do employees leave?
Understanding why people leave their jobs is key to improving staff retention. In 2022, the Edenred’s Employee Trends Report shed light on why employees moved on from their current roles in the previous year.
The number one reason? Feeling unmotivated.
This was followed by feeling overworked. Then, a desire to leave uncaring managers, a poor atmosphere at work, low pay, having a rude boss and feeling there was no room to progress.
So, what can you do to address these issues and prevent your star players from jumping ship?
Staff retention strategies
Have a read of the following seven strategies for some tips on keeping hold of your valued employees…
Make a good first impression
A positive employee onboarding process is a good first step to ensuring a new hire goes the distance.
Onboarding is the process of integrating new employees into your organisation. It includes everything from the first job ad to the interview, job offer, first day at work, and the next six months.
A 2015 study was conducted by Glassdoor. They found that companies with strong onboarding processes can improve staff retention by 82 percent!
Here are some tips to welcome a new employee. First, make sure they have the tools they need before they start. Next, finish all the needed paperwork quickly. Lastly, give the new employee a ‘buddy’. This person can help them learn and feel comfortable in their new place.
Offer training and development opportunities
As we already know, employees often leave jobs due to a lack of career growth. Ambitious employees want to learn. If they don’t get that opportunity, they may look elsewhere.
By offering training and development opportunities, you’ll improve the skills your team already has. This is all while increasing your employees’ confidence and feelings of self-worth. Win-win!
Think about in-house training like mentoring and job shadowing. Also, look at outside training like courses and workshops.
Introduce flexible working
UK employees’ value flexible working over salary. This is according to research by HR and payroll software provider Ciphr.
Flexible hours or working from home can not only help your staff. It can also help you keep good employees and attract new ones.
Employers who offer flexible hours often do better in the recruitment process. They stand out from their competitors.
Offering flexible work can allow you to reach a wider pool of talent. For example, parents who need to care for children. They might struggle with a strict 9-5 schedule.
Develop a positive company culture
Company culture refers to your business’s personality. It includes ethics, values, and expectations. Employees who like their company’s culture and values tend to be more engaged at work. They are also less likely to seek employment elsewhere.
Creating a good company culture can be as simple as praising and acknowledging your employees.
This may simply be a ‘well done' email to let your workers know that their efforts are not going unnoticed.
Reward achievements
Salary alone often isn’t enough to keep employees motivated and keep them engaged in their work.
It should come as no surprise that people want recognition for their hard work. Yet so often managers underestimate the power of simple acknowledgement. But they could be overlooking an effective retention strategy.
In fact, companies with a recognition culture have 31 percent lower employee turnover rates.
So, make a point of sharing and celebrating successes within your business. Reward good performance from your employees when you see it.
Have regular performance meetings
Have regular reviews to give feedback on performance and identify areas for growth. Employees want to be recognised and valued for their achievements. Use this opportunity to give thanks and highlight areas your employee has excelled.
This could also be a good time to talk about career development and identify training needs.
You can then set clear targets for your employee to work towards in the coming year. Make sure to follow them up in the next appraisal.
Remember, reviews should be a two-way street. Encourage your staff to speak openly about their roles and any issues they may be having. That way, they can be addressed head-on, and solutions can be sought together.
Provide employee benefits
A benefits package that is both motivating for employees and cost-effective can be a great way to retain staff.
EBRI research shows that benefits are significant in a person’s decision to accept or reject a job. With 78% saying that they are very or extremely important in their choice. Furthermore, a study by Willis Towers Watson found that 75% of employees are more likely to stay with their employer if they offer good benefits.
Death in service insurance is an employee benefit. It can offer several advantages to both employers and employees.
It is intended to pay out a lump sum to employee's loved ones in the unfortunate event of their passing.
A death in service insurance policy covers employees at no cost to them. It may offer peace of mind by ensuring their loved ones will be helped financially in the event of their death.
It is a low-cost way of providing a highly desirable benefit for your employees. It shows you care about your staff and their loved ones. It may also make you more attractive to potential employees during the recruitment process.
You may wish to consider death in service insurance for your employees. It can help protect your employees and provide financial support to their families should the worst happen.
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