Employee retention is a crucial concern for companies as they compete in the marketplace for high performing people. So how do you keep your employees engaged within your workforce? Adult development and creating a great work culture seems to be the answer. It encourages better productivity, higher employee morale and improved quality of work not to mention a reduction in turnover. By focusing on employee retention, organisations will retain talented and motivated employees who are focused on contributing to the organisation’s overall success.
LinkedIn data shows a worldwide turnover rate of 10.9 %; the tech sector showed the most volatility with 13.2 % turnover rate, based on LinkedIn member data. Certain areas within the tech sector showed even higher turnover rates, which could indicate an increased demand for these skills.
Employees leave for a variety of reasons such as ‘I don’t like my Manager, I am not being developed, Location does not suit me, my work environment is too negative’. Contrary to popular belief, compensation comes in at number 5. It takes objectivity from your management/HR resource to understand that poor people management is the major culprit in most turnover cases.
So how do you keep employees happy within your company? Here are a few easy steps to get going…
Retention starts right from the beginning, from the application process to screening applicants to choosing who to interview. It starts with identifying what aspects are most important from the onset. Progressive Companies put a huge emphasis on culture and principles/values/behaviours that exist within the Company and access whether or not potential employees can work best within their set up and whether or not an employee will be motivated or thrive within their environment/culture. A CV should tell you what the person has done in the past but will not tell you how they will work out in the future, your behavioural interviewing skills should help here.
How can you choose candidates that are more likely to stay? There are some key indicators right on their CV, begin by looking at why people left their previous jobs.
Job hoppers may not be the right choice. While they might just be looking for the right place to settle, a candidate who’s had 5 jobs in 5 years it is important to find out why they left each role in the past and from there you can decide whether or not they will be a fit for your organisation.
Promoting from within not only provides a clear path to greater compensation and responsibility, it also helps employees feel that they’re valued and a crucial part of the company’s success.
Of course, promotions go hand-in-hand with employee development and education, and this should be another tool in your retention arsenal. Whether by corporate training to help foster the acquisition of new ways of working, skills, new technologies or new processes or through tuition reimbursement from outside courses, furthering your employees’ education can help them feel valued and invested in the company.
According to research from the Consumer Technology Association (CTA), high-skills training (80 percent) and professional development programs to hone soft skills (74 percent) are perceived among the top benefits for retaining employees’ services over the next five years.
With the rise of DDO’s (Deliberate development organisations) the companies who are doing well are those who are placing employees at the centre of the company’s growth strategy.
According to a study conducted by acclaimed American developmental psychologists (Robert Keegan, Lisa Laskow Lahey, Deborah Heising, Mathew L. Miller and Andrew Flemming) they found that companies such as Next Jump reduced the employee turnover from 40% to less than 10% in less than 2 years by putting the development of their people at the centre of their strategy.
Investing in employees’ adult development can help retain talent and intellectual property at a time when there’s stiff competition for both. The need for new skill sets and evolving roles are in demand at a rapidly growing rate, so putting someone on a career path that doesn’t have any room to develop is not only a career-limiting move for the employee but a business-limiting move for the company.
Benefits and perks play a large role in keeping employees happy, engaged and healthy. But benefits can go far beyond healthcare coverage and paid sick leave. You also should consider offering stock options or other financial awards for employees who exceed performance goals or who stay with you for a predetermined time period.
Flexible work schedules, the opportunity to work remotely and generous paid leave policies also go a long way toward helping employees feel they are valued well beyond what they contribute at the workplace,
Flexible working arrangements and remote working ranked fourth among the top benefits for retaining talent, behind health insurance, bonuses, and paid time off.
Open transparent communication between employees and the company can help foster a sense of community and a shared purpose. Regular meetings in which employees can offer ideas and ask questions as well as “open-door policies” that encourage people to speak frankly with their managers, help employees feel they are valued and that their input will be heard. In order of this to happen the company needs to create an environment where it is safe for the everyone to share their vulnerabilities, to create an environment where it is safe to fail.
Another approach is to use an employee reviewing tool. Adam Coleman CEO of HRLocker has created a tool that has shown real benefit within the office. ‘We firmly believe in creating a great work culture within our own organisation’ says Adam. ‘We developed RTR (real time reviews) as a way to create a dialogue between employees and managers. Its a performance management module that helps track and monitor how happy and fulfilled your employees are in the company.
‘Since employing it within our own company, we have found that our employee retention has improved greatly.’
“Everyone knows that within the company structure, issues will arise” says Adam. “RTR lets everyone in the company, managers and employees alike set reviews – monthly or even weekly so that HR/management can identify issues early on and rectify them.” It’s then up to company leadership to act on that feedback or explain why that employee/manager might not be happy. Sometimes just the fact that the employees are being heard and that they are being listened to is important and can improve retention, even if there’s no way the company can address their challenges in that moment.’
These are just a few steps to set you on the right path to retaining people in high performing areas such as Tech, Professional Services, Non for Profit and Construction. By implementing the right structures and creating an environment that encourage people to stay will help you to keep your employees happy and engaged.
HRLocker are a cloud based online HR system packed full of personal development features for both managers and employees.