Employee retention rates can have a profound impact on a business’s bottom line, and employee retention strategies are rising in priority for many U.S. companies.
A survey of 1,000 U.S. workers conducted by BambooHR found that 31 percent of the people had left a job within the first six months.
Replacing those workers isn’t cheap. This study by the Society for Human Resource Management (SHRM) found that it costs over $4,000 to fill the average vacant position.
What’s a company to do?
Innovative Employee Retention Strategies
Many workplaces are responding to this trend utilizing innovative employee retention techniques and going above and beyond to create a workplace that employees never want to leave—and they are reaping the benefits.
If you are looking for inspirational ideas to improve your company’s employee retention plan, read on to learn some effective and innovative methods that will increase employee retention and job satisfaction.
1. Hire Employees That Fit Your Culture
Employee retention starts before you hire the employee!
Applicant screening needs to go beyond skills and experience and explore if they will fit the company culture.
For example, if the company encourages open communication and feedback, company cohesion through events that are both work and non-work in nature, and has an outgoing culture, screening needs to explore if the candidate is a fit for that work environment. If they are quiet and introverted, they aren’t going to enjoy working at your company and will most likely have trouble connecting to their outgoing coworkers.
You can address this by clearly describing the company culture in detail during the screening process and highlighting the interpersonal skills necessary to thrive. As the candidate moves along in the interview process, a personality test such as the Myers-Briggs can also be helpful.
Finding a candidate that meshes with your company’s culture will help them feel a sense of belonging right from the start.
2. Onboarding Designed For Success
Employers need to realize how much their onboarding process can affect talent retention.
Set your employee up for success with a thorough onboarding process:
- Give an overview of the company culture (events, values, traditions, expectations)
- Outline detailed goals: first week, first month, first 3 months, first 6 months, first year
- Designate a mentor who will check in with the employee frequently to answer questions or help with issues
- Provide adequate training (avoid “throwing them in the deep end”)
If you are onboarding virtually, check out our article about 10 Secrets to Successful Virtual Onboarding.
3. Foster An Environment of Teamwork and Community
Being part of a bigger plan gives people purpose.
Use team building games to build bonds within and between teams.
Encourage employee collaboration by creating teams to solve issues and work on new opportunities.
Create recognition programs in which employees can nominate fellow team members for jobs well done.
If some employees work remotely, utilize technological tools such as Slack, Trello, Asana, and Google Docs to close the distance gap and allow team communication from near or far.
4. Use Cutting-Edge Technology
In today’s day and age, workers get frustrated with sub-standard technology. Cutting-edge technology attracts employees and retains them.
Up to date technology encourages communication and teamwork, increases efficiency, and improves job satisfaction.
5. Recognition is Key – Big and Small
Employees need to know when their work or contribution is valued. Cultures that provide positive feedback create employees that feel valued and appreciated.
Whether in the hallway or in a meeting, a simple thank you is always appreciated.
Management can also set up awards for which they can nominate hard working employees.
Zappos Company has embraced a culture in which employees nominate each other for recognition awards. Their innovative ideas involve employees nominating fellow workers for jobs well done, kindness, and more. The rewards are innovative as well – prime parking spots for a week, cash gifts, and company gift cards.
This not only makes employees feel valued, but increases the connection an employee feels with fellow workers.
6. One on One Meetings
Coaching and mentoring are effective ways to increase employee retention. Regular one on one meetings allow you to coach employees in areas they are struggling, recognize areas in which they are excelling, and answer questions that help your employees continue to improve.
For more details read our blog post about The Secret To Effective One-On-One Meetings.
In the past year many companies had to operate with most or all employees working from home, and were able to see how employees can successfully do their job from a remote location.
New technology allows employees to meet via Zoom, connect using message apps like Slack, and track time from home using apps like Toggl Track.
Many predict that employees will want to continue to work from home for at least some of each work week.
This Harvard Business Review study found that employees who are allowed to work remotely were not only happier and less likely to quit but also more productive.
8. Creative Health & Wellness Benefits
Health and wellness benefits can be very influential on employee retention.
In addition to offering generous health benefits, employers are starting to offer creative benefits such as retirement planning services, stress management programs, virtual fitness classes or gym discounts, and discounts for (or on-site) wellness classes such as yoga or meditation.
9. Listen And Act On Exit Interview Information
No one wants an employee to leave, but if it happens the information gained in the exit interview is some of the most insightful information a company will receive about what issues need to be addressed in order to increase employee retention.
Follow through to correct weak areas you learn about in an exit interview. Create action plans that address them, and follow up to ensure the action plan is working.
Innovative Employee Retention Strategies Pay Off!
Knowing how to retain employees is critical in today’s market.
Constant turnover causes issues in productivity, efficiency, and hits the bottom line—hard.
Companies need to take their employee retention strategies up a notch and become innovative in order to attract the best talent . . . and keep them!
Not Enough Time To Create An Employee Retention Plan?
Robin Kramer is an Online Business Manager that has been working with small businesses for 23 years. She can help you analyze your overwhelming to-do list to identify what tasks need your executive expertise, and which ones she can manage for you to free your valuable time.
To learn more about Robin’s skills and how she could help your business, contact her for a free consultation today
Next Month’s Article Preview: Remote Work: Is It Here To Stay?