The Great Resignation has significantly impacted worldwide organizations, including small businesses and large corporations. The U.S. Department of Labor Statistics estimates that approximately 47 million people quit their jobs in 2021, resulting in 10.9 million job openings by the end of the year. As a result, there is intense competition in the corporate market as businesses struggle to attract and retain qualified employees.
Because employee turnover is expensive, businesses make a lot of effort to retain their workforce. Work Institute’s 2017 retention study estimates it can cost up to one-third of an employee’s annual salary to replace them. High employee turnover affects workplace engagement and results in numerous disruptions in addition to these high expenses. Also, when people quit, the increased workload on current employees leads to burnout and affects productivity.
Considering all these concerns, employers are exploring effective employee retention strategies to reduce turnover and retain a talented, devoted team.
Logically and practically, the goal of any employee recruiting and retention approach should be to meet the demands of the workforce. According to a Gallup research, here are some of the aspects that employees may contemplate while choosing their employers or that may drive them to quit their job:
- Higher-income
- Workplace benefits
- Work-life balance
- Occupational contentment
- Job security
- Healthy workplace culture
- DEI workforce
Employers must take further proper measures along with fostering their employee value proposition (EVP) and considering the current workplace wellness trends to maintain employee engagement and keep them satisfied at their jobs.
Here are some ideas to ponder while building an employee recruiting and retaining strategy –
Re-evaluate the Employee Benefits Packages
It’s simple: The goal of any employee recruiting and retention plan is to meet the demands of the workforce.
Compensation and employee benefits packages can be crucial components of the retention strategy in the corporate sector, which is battling employment and economic challenges. Despite studies showing that factors other than compensation are more crucial, It is clear that underpaid individuals are more likely to quit their jobs. A 2021 Gallup survey reported that about 64% of workers claimed that having a greater income played a role in whether they stayed at their jobs or left them. And so, companies must reevaluate the employee pay structures and the industry remuneration requirements. Regular pay raises might foster a sense of value among employees as it seems like a way to recognize and reward their exceptional performance.
During the recruitment and onboarding processes, it is crucial to have open discussions regarding the salary scale, benefit plans, and other incentives. Employee satisfaction will be higher and there will be less likelihood of future conflict when they are involved in the pay package discussion early on.
Assess Your Employee Wellness Programs
Since the pandemic, employee health and wellbeing have become an essential and fundamental component of the majority of corporate policies. Both employers and employees must understand that wellbeing goes beyond physical health and fitness. Employers must ensure that their employee wellness programs are overhauled in light of the growing popularity of flexible work arrangements and holistic well-being initiatives. By doing this, they can assure employee success and prevent burnout. Even employees who have not experienced burnout have also realized the importance of work-life balance and the need for flexible working schedules. Employee wellness solutions should promote holistic well-being, while ensuring work-life balance.
Rewards and Recognition
When recognized and appreciated, hard work is bound to rise immensely. Employees will perform more effectively when they are appreciated and recognized for their achievements. Employee morale and confidence can be boosted by small acts of appreciation displayed during team meetings or as part of recognition programs. This will also reflect better employee engagement and productivity. Companies can adopt incentive management programs to recognize the accomplishments of their workforce, subject to the budget. Whether it is about meeting work deadlines or completing wellness challenges of the employee wellness programs – employers can choose the best incentives to recognize and reward employee accomplishments. Regular employee recognition and incentive programs enhance engagement, commitment, and productivity while lowering turnover rates.
Although some employees may inevitably leave the organization, employers can make this more challenging for them by establishing proper employee engagement and retention initiatives in place.
In short, employee retention is higher when they feel appreciated, supported, and cared for at work.