Employee exits are an inevitable part of running a business. Sometimes workers leave for reasons entirely beyond the employer’s control and there is nothing an organization or its human resource department can do to change their minds. It can and does happen – the key word being sometimes.
More often, though, when a business is struggling with high turnover rates, it is for reasons that could have been avoided. The issues fueling a worker’s decision to leave are often attributed to problems that the organization could have fixed but didn’t, either because they weren’t aware of it or they just didn’t know how to solve it.
Given the current war for talent and skills shortage, HR leaders can’t afford to lose top performers. The job market is becoming increasingly competitive and companies are going above and beyond to attract the most qualified professionals. Adding to the angst of this environment is that the millennial generation in particular is more inclined to hop from job to job.
No corporate executive wants his or her organization to feel like a revolving door of employees. Not only does this kill productivity, but it can also lead to huge costs. At the end of the day, most managers would agree that they want their staff to be composed of hard-working, dedicated individuals who are committed to the brand for the long haul. But it is difficult to get there while suffering from high turnover rates. The good news is that there are simple ways HR professionals and hiring managers can improve employee retention.
There are cost-effective strategies that can significantly improve employee retention.1. Reconsider benefit packages
You don’t necessarily have to boost salaries (although this definitely wouldn’t hurt retention rates). There are many other benefits you can offer workers that cost next to nothing. For example, for what you can’t give them with financial compensation, make up for with flexibility. Today, most people care about maintaining a healthy work-life balance, and being able to work from home facilitates this. This can help explain why, according to The Society of Human Resource Management, the amount of businesses providing employees with telecommuting benefits jumped from 20 percent to 60 percent between 1996 and 2016.
2. Communicate more
It is frustrating for workers to feel like they don’t know what is going on within the company they work for. Studies have shown that the most effective managers are those who provide employees with consistent and ongoing feedback – and who have an ongoing, two-way street of communication.
“It’s important workers feel comfortable admitting when they’re unhappy.”
Millennials, especially, crave recognition and feedback, although Gallup recently revealed that they aren’t too keen on asking for it. Furthermore, the source said less than 20 percent of millennial workers receive feedback on a regular basis, indicating that this issue is one many businesses may be suffering from.
Beyond letting them know how their performance is, establish an environment that makes staff feel comfortable voicing any concerns. Keeping workers in the know is mutually beneficial because it enhances feelings of trust and creates a stronger bond, making employees often feel more loyal to the company and less likely to leave.
3. Improve the screening process
Hiring managers can begin improving retention rates before the candidate is even hired. By fine-tuning the screening and skills assessment process, employers can narrow down the candidates to those who are most qualified and, therefore, more likely to be happy in their roles and within the organization.
Building a talent acquisition pipeline through a staffing services agency can help streamline this process and enhance your chances of finding job-seekers that undergo extensive screening and interviewing before reaching your team. A third-party specialist will be able to handle most of the leg work and let HR professionals focus on more pressing tasks and responsibilities – like satisfying existing employees.