Unless someone’s career is also their passion, a competitive salary is crucial to keeping them in your employment. Yet the belief that remuneration packages are the only thing stopping workers from leaving is incorrect. Salary and benefits are the single biggest factor behind staff handing in their notice, but many other aspects influence job satisfaction and corporate loyalty. Forward-thinking and employee-centric companies can incorporate these employee retention strategies to retain staff and continue benefiting from their invaluable expertise.
Below, we consider 10 employee retention strategies which typically save far more money than they cost.
1. avoid hiring transient staff
If your most promising interview candidate has had a job-hopper career, they’re unlikely to spend long at your firm. Look for staff who’ve held previous roles for a reasonable number of years, unless there are compelling explanations behind their moves. Even an undergraduate’s CV will betray a mayfly attitude to part-time jobs, hobbies, or volunteering opportunities.
2. profile vacancies with honesty
HR staff have to promote their company to prospective candidates, but they might end up painting an unduly rosy picture of their firm. Disillusioned new recruits are liable to depart prematurely. Tackle this by profiling vacancies fairly and honestly, explaining ongoing challenges and encouraging candidates to see themselves as part of the solution.
3. conduct effective onboarding
Onboarding isn’t just about getting a work laptop set up or ensuring staff read mandatory DE&I documentation. It’s about introducing them to the key people in different departments, explaining long-term objectives, and offering mentoring and proactive management. A well-trained and adequately resourced employee is far less likely to abandon ship prematurely.
4. appoint managers with care
It’s often said that people leave managers rather than companies. A bad boss is uniquely demotivating, meaning effective managerial hires are among the most important any firm will make. When recruiting managers, prioritise character traits like empathy, compassion, and humour over ambition, ruthlessness, or self-promotion. Would you want them as your boss?
5. make staff feel actively involved
Firms like the John Lewis Partnership, Arup, and Richer Sounds have made every employee a part-owner, giving them a vested interest in the firm’s success. Other ways of directly engaging staff include firm-wide performance-related bonuses, the chance to vote on potential changes, two-way communication with bosses, and voluntary CSR initiatives.
6. offer on-the-job training
Relevant and career-boosting training or academic qualifications can underpin employee retention strategies. It improves their self-esteem and also equips them with new skills.
7. work towards corporate achievements
Work is a constant topic among friends, relatives, and even neighbours. If an employee’s firm has won an award for charitable work or is the first in its sector to be carbon neutral, they’ll be proud to discuss it. That pride will bond them to the firm, especially if they’re talking to people who say how lucky they are to receive annual bonuses or corporate discounts.
8. offer flexible working arrangements
Parents often need flexible working hours to accommodate childcare. Many people will appreciate the ability to take an emergency day off. Employee retention strategies should consider how flexibility increases staff loyalty. Being able to work from home can reduce employee turnover by a quarter.
9. praise good work
This shouldn’t need stating, yet it’s often overlooked. Some staff may not welcome their achievements being broadcast company-wide, but a message of congratulations from their line manager or a quick word of praise from a director can add a spring to their step. It also encourages more hard work, diligence, and proactiveness, creating a virtuous circle.
10. conduct exit interviews
We recently explained how to conduct exit interviews effectively. Nobody is better placed to advise on corporate shortcomings or departmental issues than people with nothing to lose. Approached in the right manner, exit interviews are a valuable HR resource. They might also be used to persuade wavering staff to remain, negating recruitment and selection entirely.
save money by thinking ahead.
With staff turnover costing a company as much as twice their annual salary, effective employee retention strategies bring numerous benefits. This is especially true for key staff, whose departure would be particularly challenging. However, as we’ve explained, effective hiring is also crucial, which is where hireful can help. Our industry-leading recruitment software makes recruitment and selection simple and intuitive, improves candidate experience, and saves you money.