9 amazing employee retention strategies to reduce attrition rate
Sep 27, †Ј 7 Ways to Reduce Employee Attrition 1. Communicate your vision. While you may be able to articulate the purpose or vision of your business, your employees 2. Optimize recruitment. You can optimize your recruitment process by starting with clear and specific requirements. Set 3. . How to reduce your new hire turnover rate. Once you know how to calculate your organizationТs new hire turnover rate, you can look into ways to improve it. There are steps you can take throughout the recruitment process, both pre-hire and post-hire. Pre-Hire Strategies.
Speaking about employee retention strategies, if your organization does not have one yet, you are not alone. If you take good care of your employees they will replicate this feeling to your clients and customers making your organization stand out in the crowd.
Google, Facebook, Amazon, Microsoft, TATA and all the other great organizations you can think of have one thing in common Ч they hire talent and they keep them. Here are some winning employee retention strategies to significantly reduce attrition rate:. The process of employee retention begins much before the actual signing of the work agreement between an employer and an employee.
A lot of organizations, especially those dependent on technical know-how, have a pre placement test for the interviewees. This lets you understand the how to reduce attrition rate of the talent beforehand. Though these tests might give you a fair idea of the technical capabilities of the individual, only a personality test can help you evaluate whether or not the candidate has the right mental and social aptitude to be a right fit to your organization.
The first couple of days at a new workplace can be a very overwhelming. What is the zip code for newton ma new employee has to understand and absorb how things work at a new place.
She is getting introduced to a new culture. Instead of leaving the employee to figure her way around, create a plan for the first week at least to let her sync in to the new milieu. Give her a tour of the workplace, assign a buddy, introduce her to key people he or she might be working with, and introduce her to the ways of the organization.
An induction program helps a new employee feel less like an outsider and more like a part of the organization she has just joined. Keep it informal by embracing the open door policy.
Listen to them how to disable unwanted advertisements encourage them to come up feedback so that you as an organization keep improving. Most organizations mistake feedback to be only a tool of relevant criticism. Instead you can make it a two way communication to improve transparency. Feedback also achieves another very important goal of letting the employee know that the organization is watching out for her.
A feedback makes the employee feel that his work is not going unnoticed. When you let your new team member feel that her work counts, it makes her feel more responsible for it and in turn feel a deeper sense of responsibility towards the organization. An annual appraisal based on employee assessment is sometimes not enough to keep your team member motivated. Everybody loves a pat on the back every now and then. There is a sense of accomplishment when your work is appreciated by your seniors and coworkers.
Appreciations can be circulated within the organization with mentions in fortnightly or monthly newsletters. It can be appreciation of an individual or a team. Good work when rewarded results in more good work.
Happy employees will be loyal to the organization. Introduce small but lucrative incentives to encourage a competitive attitude. Make the employee feel that there is more to work than earning his monthly dues. Take this fun thing very seriously because all work and no play can make the whole team dull. Your organization will only be as good as your employees are. Take your team to offsite, let them pursue their hobbies, let them be who they are, this will not only keep them active but also accountable.
Get to know whether your employees to lead a healthy life or not Ч engage them in yoga and music sessions. Do respect the personal space of your employees but let them know they will be backed up when they need organizational help. Employees tend to stay longer with organization that show respect to employees and have a lot of fun. Your employee will love to have a clear career graph charted out in front of her if she keeps on doing everything right.
If you have not done it already, do it. Also, plan the role of your employee beyond the current project. Cross mentorship programs are a great way to encourage her to interact with other teams and how to use adblock chrome also help her understand other verticals within the organization. Employees like to stick to an organization which cares about their individual success. We are living in the communication age hence the policies suitable for industrial era might not be of how to store tahini after opening use now.
You might need an overhaul to your human resource policy. You will have to have an employee centric how to make authentic salsa that is dynamic and that adapts to the changing ways of the world.
The more rigid it how to build hho generator pdf the more problems your organization will face retaining talent. Keeping your HR policies updated at all times in accordance with the best practices is a must. If you want to build a robust team you need to trust them. Make a transparent mechanism to share any developments within the organization. Being a part of the success story of an organization, increases employee loyalty.
Sharing future plans with the employees, helps them see the larger picture and understand their concern help achieve organizational goals faster. It instils in them a sense of responsibility of working towards a larger goal together. While Exit interviews are quite the norm, while you get to know the reasons why people leave your organization, stay interviews are more proactive.
Here is a great way to understand what makes your employees stay in your organization and what are the reasons they may not want to continue. What would you miss the most in your present role, if you went for a role change? An organization that respects its employees, keeps them engaged with suitable policies result in higher employee retention.
Here is a Quick 10 minute Quiz that will tell you how good you are at retaining your best people. Would you like to share any of the employee retention strategies that you have successfully used for your organization or may be keen to implement in the future?
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Analyzing employee turnover
Last Updated: March 29, References Approved. This article was co-authored by Elizabeth Douglas. Elizabeth has over 15 years of experience working in the tech industry including roles in computer engineering, user experience, and product management. There are 9 references cited in this article, which can be found at the bottom of the page. This article has been viewed , times. In the world of business, the high rate of employee turnover can be a significant problem.
Economic research suggests that for some industries it can cost up to one-fifth of an employee's annual salary to find, train, and hire a suitable replacement. Luckily, by improving the environment at work, practicing smart hiring strategies, and ensuring that your company is optimally-organized, it's possible to keep turnover at a healthy minimum. Employee turnover is a regular part of business, but reducing it can save on costs of hiring and training new employees.
There are several things that can impact whether or not employees want to stay at their job, including their pay and their potential for advancement. This will give them an incentive to work harder and help them feel more valued as employees. Having good work relationships is also really important for employee retention, so make sure your employees feel comfortable talking and joking in the office. To break the ice, you could organize a fun employee outing or start a work sports team.
Tips and Warnings. Related Articles. Article Summary. Part 1 of All rights reserved. This image may not be used by other entities without the express written consent of wikiHow, Inc.
Pay more or offer a path to a raise. In the free marketplace, cash is king. If you're willing to pay your employees more than a competitor would, they'll be less likely to leave for other work. An added benefit of increasing your employees' pay is that it allows you to ask more of them Ч well-paid employees have an incentive to work harder and commit themselves to their job, while employees who are making relatively little won't usually have the same level of dedication or loyalty.
If you don't have the cash to pay your employees more than the competition, be creative. For instance, offering company stock options or equity plans is a relatively low-cost way to increase the long-term earning potential of your employees. As an added benefit, these sorts of options give employees a real financial stake in the company Ч if they work hard and help the company do well, their stock value will go up and they'll make money.
Offer potential for advancement. Employees like to feel like their hard work is being rewarded. As a manager or business owner, part of making sure your employees feel this way is compensating them fairly for their work, but another part is giving them the opportunity to achieve the non-tangible benefits of recognition and advancement. Reward exceptionally smart, resourceful, and hard-working employees by gradually increasing their responsibility and giving them more important titles.
An employee who's advanced from an entry-level position to a manager role is much more likely to be loyal to your company than one who's done the same job for years in spite of her hard work. If you're having a hard time communicating this to your employees, try inviting a career counselor into the workplace once or twice a year to discuss this with them.
Try to promote from within your workforce, rather than recruiting outsiders into management roles. While this may sometimes be unavoidable, hiring an outsider to fill a management vacancy when there are qualified employees with years of experience who could conceivably do the job can give the impression that you don't care about your employees' accomplishments. Rebalance the work load.
If an employee's work is stressful, monotonous, or extremely difficult, different jobs with comparatively easy work loads will start to look very attractive. Never work your employees to the point of exhaustion Ч this is one of the easiest ways to cause your employees to start looking for other work en masse.
In addition, it's also often financially inefficient: employees with very long or stressful jobs will require significantly higher pay levels to retain than employees with ordinary duties and hours. There is a wealth of evidence to suggest that working your employees extra-hard can actually cause their net productivity to plummet Ч even to below the level of productivity from a normal hour week in some cases!
Some research has found, for instance, that excessively long hours can cause employees to take longer to perform the same tasks as they normally would, deal poorly with problems requiring critical thinking or creativity, make more mistakes, and waste time engaging in recreational or personal activities at work.
Offer competitive benefits. Increasingly, people looking for work don't just consider the salary being offered by a potential employer, but also the benefits provided.
By offering affordable benefits like health insurance, dental insurance, K plans, and, as mentioned above, stock options, you can make a job at your company more appealing than one at a competitor's, decreasing employee turnover. Reviewing your benefits package is something your company should do regularly Ч at least once a year. Be aware of the benefits your biggest competitors are offering their employees. In the U. Offering a good employee health insurance plan can make a job with your company especially attractive, decreasing turnover and making it easier to hire.
In addition, ensuring your employees have decent health coverage can be a wise investment in the long run Ч healthy employees are productive employees. Encourage friendly employee relationships. To long-time employees, coworkers and bosses can function like something of a family, providing friendly relationships, conversation, and sometimes even emotional intimacy.
Don't let your employees' jobs become a source of a source of boredom or dread for them. Instead, try to foster a warm, open environment at work. Employees should be comfortable talking, joking, and making outside-of-work plans with each other as long as it doesn't interfere with their work. If your employees seem "cold", standoffish, or emotionally distant, try sponsoring a fun workplace outing to lighten the mood.
Going out for drinks, catching a movie, or playing sports after work can be a great way to bond with your employees and allow them to bond with each other, even if you can only do so once or twice a month. Trust your employees with responsibility.
People tend to work hardest and smartest when they think their jobs matter. Consider this: who is likely to work harder Ч a mail room clerk with little responsibility or a heart surgeon with responsibility over other peoples' lives?
Try to make an effort to give the employees with even the most minor jobs some sense of importance or responsibility. If they understand exactly how their work is essential to the business's success, they'll have added motivation to succeed in their jobs. Ironically, giving people added duties that increase their responsibility can actually make their jobs more attractive to them.
However, if you do this, be open to the possibility of promotion or a raise in the future Ч employees don't want to deal with increased responsibilities without ever being rewarded for their work.
Part 2 of Hire more selectively. Most business experts agree that one of the very best ways to keep your employee turnover rate low is to ensure that the people you hire are right for the job in the first place. Intelligence Ч does this person have the smarts or creativity necessary to perform under pressure? Personality Ч does this person fit your company culture? Conduct regular employee reviews. If your business is suffering from high employee turnover, one of the best reasons to find out why is simply to ask your employees.
Having regular review sessions in which you or another qualified person meet with each employee and talk about what they like and dislike about their job is a great way to make sure the employees feel valued and see their concerns being acknowledged.
If you don't feel that you're up to this task as a manager, don't worry! For a fee, a third-party HR agency can handle the process for you.
As an added benefit, these review sessions can also give you great ideas. For instance, if one employee who's sick of sitting at her desk all day has a great idea for putting a standing desk in the break room, doing this might make her significantly more happy in her job for a relatively small one-time cost. Your reviews should involve a healthy back-and-forth of information sharing.
Be willing to "meet your employees in the middle" as long as their demands are reasonable and their intentions are good. Conduct exit interviews. Even friendly, open companies with great work environments occasionally have to let people go. When your business has to do this, take the opportunity to conduct a thorough exit interview with the employee being dismissed before he's gone for good. Some business experts have found that employees are more willing to be candid at exit interviews, though others have found that many employees will be less critical in hopes of getting a good recommendation.
Regularly review and assess employee concerns. Merely asking your employees what makes them unhappy isn't enough Ч to keep them feeling valued, you'll need to make a reasonable effort to address their concerns and, most important of all, show them that you're making this effort. If your employees can see that their comments and suggestions are being taken to heart, they'll feel like they're being listened to and that their opinions matter in the grand scheme of your business, which can make even a low-level employee feel happier in his job.
For example, if you notice that many of your employees are complaining about the fact that they feel disconnected from the rest of the company Ч in other words, that they can't see how their individual jobs affect the success of the business as a whole Ч you may want to consider having monthly team-building events where employees from one part of the company work with employees from another part for the day.
This can help give your employees an "bird's eye" view of the company's inner workings. Part 3 of