WHAT IS EMPLOYEE RETENTION?
Employee Retention, as the name suggests refers to various practices employed by the management to help employees stay with the organization for a longer period of time.
WHY EMPLOYEE RETENTION IS IMPORTANT?
Every organization puts in time and money to make the new joiner a corporate-ready material and bring him to the level of existing employees. These employees, when prompted by factors such as lucrative salary, comfy timings or be its growth prospects, tend to look for a change. No matter how much you do to influence them, ultimately the employee is the one who decides to go or to stay. Research says nearly one-third of the new hires quit their jobs after about six months of joining. This is when the management and human resources team step in and find out the exact reasons leading to a better decision.
How can you expect to build a successful company if your employees come and go rapidly? It costs roughly 20% of an employee’s salary to replace that individual.After all, when an employee decides to seek employment elsewhere, along with the financial burden of recruitment and training, the organization also loses individual’s talents and ideas, his so-far-learned organizational knowledge, credibility, and customers. Moreover, constantly training new employees is a waste of resources.
To maintain consistency, there is a vital need for effective employee retention strategies.
EMPLOYEE RETENTION STARTS FROM HIRING
Right from the application process to screening resumes to selecting the one for interviewing, you aren’t just recruiting but are sowing the seeds of your success and reputation. A good recruiting process focuses and aligns recruiters to deliver the best to the organization. Hiring the right person results in the provision of better quality service with better skills, lead to job satisfaction and moreover, create an effective and motivated workforce.
5 EFFECTIVE EMPLOYEE RETENTION STRATEGIES
A Clear Job Description:A crystal clear picture of what employers want in an employee and what a candidate perceives of his job role must be presented in the job description, in a self-explanatory way.
Emphasize Professional Development and Learning:Candidates must be aware of the opportunities provided in the field of learning new things and developing skills. This demonstrates potentially what they can offer in long-term and not just what they can do for the company NOW.
Identify Cultural Fitness:Introducing psychometric assessments at the time of recruitment could be an apt tool to ensure that employee’s beliefs and behaviors are in alignment with their employer’s core values and company culture.
According to SHRM, the result of poor culture fit due to turnover can cost an organization between 50-60% of the person’s annual salary. Hiring based on shared values and cultural beliefs leads to winning results and ensures that employees are likely to remain in the organization for a longer time, thus contributing efficiently. Strengthening your business starts with keeping such employees on board.
The next in line for early retention is effective on-boarding.
2. EMPLOYEE ON-BOARDING:
“We focus first on the people and how we incorporate them into our company, and then we focus on how to drive the business.” Says John Chambers, former CEO of Cisco Systems.
On-boarding is much more than “here’s your laptop and here’s your desk”, but a key transition period of getting settled with the values, culture and the system. Done well, it is the first step in keeping talented people excited, happy and engaged for long.
DID YOU KNOW?
According to a 2007 study by the Wynhurst Group, when employees go through structured on-boarding, they are 58% more likely to remain with the organization after three years.
Interestingly, these on-boarding processes are not a heavy thing to by heart. It is actually a process which starts even prior to hiring. Confused? Let’s go through it.
PRESENTING:A brief and convincing presentation about the job role, growth patterns, pay scale and the culture in the organization before the actual hiring commences could be the initial step.
PLANNING:Planning for the very first day would come next. IBM sets a good example here, as they prepare workstation and assign a mentor to welcome the new joiners on day one. In addition to this, they introduce the employee to the workplace culture.
Talking about Twitter, which has a descriptive 75-step process for the same. They provide the new joiner with essentials like email ID, t-shirts plus a bottle of wine, followed by a breakfast with the CEO along with an office tour before they get to training.
MENTORING:A proper, well-defined mentorship program comes next where they are walked through the soft skills of how things work there and get acquainted with the company’s vision; keeping in mind they assimilate into the culture smoothly.
According to CareerBuilder, 92% of employees are more loyal to employers who invested in their skills by training those.
It takes eight months for a new joiner to be fully productive in their new roles. On a broader scale, an effective on boarding system includes new hires in a social circle and is a learning process where feedback is the motivator.
3. FIND OUT MOTIVATORS
The more pushed and associated you are with your workforce, the more imperative your company’s potential for progress. Motivation is a key component which drives a man to perform adequately and exceed expectations at work. To comprehend a candidate's' motivation, Mettl gives you a comprehensive library which measures inspiration on 8 key helpers under 3 noteworthy requirements:
Sustainability Needs:One of the most common and effective ways to motivate staff. Monetary motivating forces for instance wages and pay rates, reward, medical coverage, retirement benefits come under this category. As per a survey, 89% of the companies using financial incentives were rated positively.
Relatability Needs:It is the most evident way of motivation if provided at the right time and tracked well. The power inherent in employee recognition and a sense of competition really keeps an employee pumped up and hence, results in increased employee productivity.
Growth Needs:The potential for growth is a huge motivational difference maker. Opportunities to improve their skills and broaden their knowledge, giving them the power to take some decisions and a sense of achievement are the ones that do affect an employee’s motivation.
Nothing works better than motivation. Empowering employees, appreciating them for their efforts and performances and making them realize their value to the company induces motivation and help reduce employee attrition.
4. CREATE AN EMPLOYEE DEVELOPMENT PLAN
“An investment in knowledge always pays the best interest.”
Each employee joins an organization with a mindset to increase their skills and advance their careers in the times they serve. What's more, with a more extended range of abilities, they have more instruments to enable your business to move forward. Well, it's a win-win for you as well as your staff. An employee development program thus needs to be built in order to suffice. These are four steps to create an on-point development plan.
Consider Business Goals:Align employees’ development needs with the organization’s needs. Once done, identify the necessary skills and competencies that support long- and short-term business objectives. Then comes bridging the gaps between current employee skills and the required ones.
Employer-Employee Conversation:Talk with each employee and get a better understanding of their career goals and challenging areas. Figure out their short and long-term plans and the corresponding opportunities to learn.
Capability v/s Readiness:Keep a check on the situation where an employee may have the skills and knowledge, in short, has enough potential for a job role but he isn’t ready to move into it (reasons may be personal or any other).
Training and Development:Now comes how the employee will acquire new skills. In an inexpensive and proficient way, certain assignments and projects can do a favor. One-on-one mentoring, creating groups or online courses are the ways in which L&D program can be executed.
After successful training, employees get updated with new skills needed which is a strong reason to stay longer. According to Wasp small business report, 56% of businesses plan on hiring in the next 12 months while 82% plan in developing employees more. Here comes the trickier part to evaluate employee performance versus expectation.
5. THE EVALUATION
After creating an employee development plan comes the major part where evaluation is done. A formal evaluation writing with a performance review and holding a quarterly meeting with the employee should be the next step if you seek to retention. Gather and review all the documents and records related to the employee’s performance, productivity and behavior. Once done with clustering thoughts about the employee’s work, write a performance review that must contain:
Goals employer set for that job and employee
Employee’s stand on expected goals
Valid reasons for your conclusion
After preparing the performance data, an employer-employee meeting should be set up. Well, when it comes to meeting, it should be long enough to discuss the issues thoroughly. It needs to be specific, realistic and honest and let the employee know his plus points as well as the weak ones. It should be an interactive one and not just come-listen-and-go meeting. Go beyond the designation, get to know them better. This generates warmth and humane touch to an otherwise cold, formal relationship.
A successful employee development plan makes your workforce knowledgeable and hence, satisfied. And when your employees are happy, they are less likely to look somewhere else.
You can't stand to approach employee retention in a passive way. All that you do ought to be a part of the complete and central system. The abstract of employee retention is: Do you treat your employees with trustworthiness, as though they are people with their own needs, individual lives, and objectives who are characteristically deserving of regard? If both the policies and practices of an organization align with the question with a resonating YES, at that point the company is on its way to successfully retain their employees.
Topics: Employee Retention