5 Proven Strategies to Boost Employee Retention
Employee retention rate is a key performance metric (KPI) every business should be measuring and tracking for internal reporting purposes. It’s the ratio of employees out of the whole employee pool who have stayed on all through a given time period. Research shows that being able to keep satisfied employees on board longer can increase your bottom line, which is why boosting employee retention should be a part of your business strategy.
Higher employee retention rates indicate higher productivity levels and lower overhead costs. Taking strategic action to improve employee satisfaction also benefits company productivity and its reputation. That said, here are five strategies you can use that are proven to improve employee satisfaction:
- Create More Work-from-Home Opportunities
According to a study from Stanford, remote workers are shown to be more productive and have higher job satisfaction compared to non-remote employees. Millennials, who are comfortable with technology and appreciate tailoring their own lifestyle, are generally more open to work-from-home opportunities. Commuting can add stress to an employee’s life and tie them down to a location. Working from home allows employees to save money and time commuting. Plus, they have more freedom to create their work schedule and move locations. All these factors make a huge difference for employees, so having telecommuting available contributes significantly to employee retention.
Remote working and telecommuting were on the rise before the global pandemic struck. With lock-downs and social distancing measures put in place for businesses to follow, the importance of virtual work increased. To keep productivity afloat, most businesses continued having team members work from home. For the foreseeable future, companies giving employees the opportunity to work from home will see better employee satisfaction and higher retention rates.
- Give Bonuses for Hitting Top Performance Metrics
Motivated employees are happier at work and tend to get more accomplished when they’re incentivized. Money bonuses or gift card prizes can be given to the employee who reaches the highest sales numbers each month. For marketing employees, the reward could be given to the employee reaching the highest social media engagement rates or blog post views in a given month.
By giving employees a reward to focus on, you’re not only providing them an opportunity to earn more from their job; you’re also developing a positive work culture that’s competitive but also rewarding for those who work hard. The morale and productivity boost trickling down to your bottom line make this strategy a big payoff.
- Get Your Crew the Best Tech
For employees, there’s nothing more annoying and dreadful than tech problems and system breakdowns on the job. When computers or mobile devices are known to freeze or be slow and clunky, it’s time for an upgrade.
Workers feel valued when given the latest equipment or software to perform their jobs. Investing in newer, better technology can save time for employees, reduce error, improve customer communication and help them fill in knowledge gaps independently. Reliable tech brings about a confidence in employees that translates over to how customers perceive the company.
- Have a Diversity Program and Foster Inclusivity
A diversity program in the workplace is policy that requires a diverse representation of races, social identities and cultural backgrounds. Research shows that diverse teams exhibit more innovation and higher productivity levels compared to non-diverse teams. The more differences team members have, the more they tend to focus on their common ground: your company and their work.
Inclusion is your company’s fostering of a culture that makes all employees feel included. Feeling accepted and like you belong at your company is critical for job satisfaction. The more inclusive your work culture, the happier your employees can be.
One strategy is to have employees take part in inclusivity training. This teaches workers how to be sensitive to different cultures. It also raises awareness to social identities such as different gender identifications. Whereas diversity is typically addressed by HR in the hiring process, inclusion is often all-pervasive effort in a company. Events that celebrate and recognize different cultures and identities are another strategy for inclusivity.
- Prioritize Employee Physical and Mental Health
A stressful work environment is an unhealthy one. When stress and pressure among employees goes unchecked, employees can creep closer and closer to the verge of burnout. To help your employees maintain mental wellness and high levels of productivity in the workplace, you can encourage employees to take breaks when they need to. Make sure the employee break room is a relaxing environment, with lights that can dim, and appealing decoration. Include resources for mental, as well as physical, health assistance. You’ll be amazed just how much of a positive effect a simple ping pong table or a pin ball machine will bring to the team.
Keeping Your Most Valuable Players
Employees don’t just care about the salary they get. They care about how they feel at the place they work every day. Naturally, those who feel more comfortable and satisfied with their employer are more likely to work hard and stay on longer. This makes for productive, innovative employees, who care about the company and have more experience in it.