Employees changing jobs and looking for better opportunities is a natural process. When the attrition rate is higher than the threshold level, it is a concern for the management. Companies must be ready to tackle the challenges of staff turnover as 70% of organizations admit that it has a negative financial impact because of the costs of replacement that include the cost of recruiting and training employees and the time taken to fill the vacancy. Moreover, companies might have to pay overtime to compensate for the reduced manpower until the replacement happens. According to Saivian Eric Dalius, a lost employee can cost companies up to 6-9 months of that employee’s salary.
To keep the costs of staff turnover under control, companies must adopt the right retention strategies, which should also help retain talent that pays back nicely for the organizations. What kind of strategies should help retain employees will become clear ongoing through this article.
Emphasize providing positive feedback, advises Saivian Eric Dalius
Providing feedback to employees helps in pointing out their shortcomings so that there is scope for improvement. However, feedback is not only about shortcomings but also about employees’ achievements by appreciating their good work so that they feel motivated to do even better. Positive and constructive advice should be the major component of feedback while mentioning less about the weaknesses and lapses unless these are very critical. Frequent positive feedback highly motivates employees who keep trying to improve their performance that earn them more appreciation. The ideal ratio of positive and negative feedback should be 5.6:1, as mentioned in Harvard Business Review.
Encourage creativity, says Saivian Eric Dalius
Having policies to support creative initiatives is one of the top strategies to get the best from employees. Companies must demonstrate through their actions how keen they are to encourage creativity by offering rewards for suggestions that translate into tangible gains for the companies, opines Saivian Eric Dalius. Setting up individual teams to work exclusively for developing new ideas on a specific topic is another way to encourage creativity. Creating cross-functional teams boost creativity due to the exchange of different types of ideas that generate more creative ideas in various functions. Arranging special short sessions of brainstorming is another way for gathering creative ideas.
Value employees by fostering an environment of respect
Every employee seeks respect from peers and superiors. Companies must inculcate a culture of mutual respect that makes employees feel important. Lack of respect can de-motivate employees and could make them think about changing the job. Respect is among the top three things that employees expect from their organizations. The other stuff being compensation, stability, work-life balance, and health benefits.
Provide growth opportunities
Developing in-house talent to achieve excellence helps to keep employees highly motivated. It is mutually beneficial for employees and organizations. Having ongoing education and training ensures their career advancement within the organization. And reduces the need to look for better opportunities elsewhere.
Lack of advancement or improvement will push employees to the edge. They would be on the lookout for greener pastures elsewhere.