15 Factors That Greatly Influence Employee Retention
Employee retention doesn’t always have the highest importance in organizations of all sizes and sectors, but it should. When you consider the costs of replacing an employee, both financially and in terms of time invested, you can start to see why it would be beneficial to do whatever you can to retain your best workers as long as possible. The following are 15 factors that greatly influence employee retention and will help you keep your best people on board for longer.
1) Great Work Relationships
According to one survey, most employees say that having a strong manager is their number-one motivator. It makes sense; we’re hardwired to trust and respect authority. If you want long-term employees who feel valued and productive, be a great manager and foster a culture of trust and respect in your workplace. Make sure your team members know exactly what’s expected of them so they can work more efficiently and feel good about it! One way to do that is by providing plenty of opportunities for feedback but make sure you’re listening to what your team members have to say. Just because you value them doesn’t mean they always get their way!
2) Lack of Recognition
Perfect Long-Term Employees must feel a sense of appreciation and achievement from their employers. A lack of recognition can make Perfect Long-Term Employees feel unhappy and disenchanted. Giving workers a little extra praise for hitting targets, or allowing flexible working arrangements will keep them happy. Boosting employee morale helps to retain top talent because it leads to better employee satisfaction and higher productivity levels daily. Regular training is another way to keep Perfect Long-Term Employees engaged in your company and helps you to take full advantage of every resource available to you. It can also help improve employee retention by reducing sick days taken due to overworked employees. Allowing Perfect Long-Term Employees opportunities for career progression encourages them to stay with your company as they develop new skills through ongoing training.
3) A Clear-Cut Employee Purpose
A clear-cut employee purpose is at the heart of every effective team. To do your best work, you need to know why you’re working. Make sure everyone on your team has a crystal-clear vision for what their company does and why it matters so that you can all stay laser-focused on creating value for customers. This will help you retain top talent and keep them motivated in their role. Remember: a happy employee is an engaged employee, which leads to higher productivity and better quality work from every member of your team and we all know how important high-quality work is when it comes to successful businesses!
4) Good Management Practices
Managing employees well is an art form, but certain universal management practices are proven to boost employee retention. Have a productive day at work by learning how to manage underperforming employees and get all your employees pulling in the same direction. Because if you can find great employees and help them grow with your company, you’re bound to see productivity increases and, ultimately, employee retention. You should also keep training new employees as much as possible to improve employee satisfaction. Also, look for top employees early on so that you can hire them for your team before someone else does.
5) Poor Well-being
When it comes to employee retention, your company’s physical surroundings are a major factor. If people aren’t happy or healthy, they won’t stick around for long. According to research by Gallup Inc., about half of your employees will quit within two years if their needs go unmet and chances are good that physical well-being will be part of that. Your office should provide ample space, comfortable temperature, and access to natural light, as well as free food and drinks throughout the day.
6) Career Opportunities
As a new business owner, you’ll be tempted to hire as many people as you can. However, adding employees should not be your top priority. Once you’ve built up some momentum, it’s time to start focusing on hiring top employees. You want to hire individuals who truly believe in your mission and share your values this isn’t going to happen overnight. First, recruiters will apply for positions that aren’t available; then non-ideal candidates will apply for those same positions, and so forth until perfect matches are hired. To keep from overpaying and hiring poor fits, stick with one recruiter (or source) until he or she can deliver a steady stream of high-quality candidates.
7) A Well-Defined Career Path
When employees can see their career path at a company, they’re more motivated to work toward those goals and less likely to leave. According to a recent survey by CareerBuilder, job seekers are seeking greater opportunities for advancement and salary increases in 2014 than they were last year. In addition, 46 percent of workers say they would change jobs if they knew that someone else with similar skills could do their job as well or better. Perhaps more tellingly, another survey from Right Management found that 75 percent of senior-level employees said that lack of growth opportunities would be a reason for them to leave their current position.
8) Work-life balance
It’s not just a matter of being cognizant of employee schedules, it’s also important to avoid hiring fundamentally unhappy people. This means being aware of what makes them tick, and what ticks them off. Finding out why they want to leave their current jobs, or if they feel overworked and under-appreciated, will help you avoid future problems and save yourself from losing great employees you’ve spent time recruiting. (For related reading, see: How to Hire a Good Worker.)
9) No Room For Burnout
Employees who have time to recharge their batteries and take a break from their stressful duties are more likely to stay put with an organization, rather than jump ship for greener pastures. Give them time away from work and a chance to be productive in some other way. Encourage your employees to do what they like best and develop new skills in non-work-related fields. These actions help your team members build a well-rounded life outside of work and make it more likely that they’ll stick around.
10) Training, Coaching, and Mentoring
The Department of Labor reports that 82% of new hires leave a job within their first two years. The training and mentoring you give to your employees help keep turnover at bay. Mentoring someone is a great way to learn about yourself, communicate your knowledge, and establish a lasting bond with others. A mentorship can consist of any number of things from a one-on-one meeting once per week to sitting in on each other’s team meetings on occasion. The key is investing time in helping your employee grow. And you never know: that person might be grooming you for future leadership roles as well!
11) Appropriate Compensation
It may sound counterintuitive, but providing your employees with fair compensation can improve employee retention. When employees are properly compensated for their hard work and dedication, they feel satisfied with their jobs and are more likely to remain in place rather than seeking greener pastures elsewhere. Incidentally, it’s also a good idea to offer incentives for exceptional performance as well as longevity within your organization. Even small perks like gift cards or bonuses can make all of the difference in terms of morale and motivation among staff members.
12) A Supportive Management Team
Being happy and having a sense of purpose aren’t just nice things to have at work; they also impact employee retention. If you want to avoid turnover, being sure your team members know their ideas and suggestions are welcomed by management will help. Showing that people can grow within your organization is another way to keep employees engaged, motivated, and dedicated. Set an example for managers below you by promoting from within whenever possible; when it’s not possible, make sure management’s commitment to staff development is evident.
13) Financial insecurity
One of many factors that can cause a bad work environment, financial stress has an outsized effect on employee satisfaction. Economically secure people don’t need a job to make ends meet and that makes their employers happy. Those who aren’t are much more likely to change jobs for better compensation and benefits (an estimated 70% compared with 20% of those with stable finances). When possible, offer paid time off, performance bonuses, or other opportunities for employees to share in company profits. Also, consider providing referral bonuses or additional pay if employees refer new hires; after all, your most loyal employees have your best interests at heart.
14) Adequate Benefits
When it comes to benefits, your options are almost limitless. You can offer your employees health insurance, gym memberships, and a cafeteria plan that allows them to choose their food. However, when trying to retain quality employees, what you do (or don’t do) about health benefits is one of your biggest opportunities for differentiation. The right benefits package can help you entice top talent while poor coverage has been known to drive away valuable workers.
15) Flexible Work Hours or Locations
Finding a job with flexible work hours or locations is ideal. The ability to work from home, job sharing, and flexible schedules all help employees retain their positions. As more Americans move away from traditional office structures, companies will have to find new ways to accommodate them and keep them happy. Because if you don’t, they’ll be easy pickings for your competitors.
In every company, some key people have a huge impact on its success. This can be due to their work ethics or leadership qualities. When these employees decide to leave your company, you might feel like you’re losing a part of yourself. If you want to improve employee retention in your company, make sure that they feel appreciated and they’re having fun at work! By doing so, they won’t be distracted by other opportunities that may appear elsewhere.