A recent article published by the Society of Human Resource Management does a great job of shining the spotlight on one of the biggest workforce challenges today – employee retention. Let’s look at some industry data and break down the top employee retention strategies outlined in the article.
Job Satisfaction Study
A 2017 SHRM research study looked at 44 different aspects of job satisfaction and 38 factors related to employee engagement. Here were some key findings:
- For the 3rd consecutive year, the largest percentage of respondents indicated that respectful treatment of employees at all levels was a very important contributor to job satisfaction.
- Trust between workers and senior management has gained importance – increasing 6% compared to 2015 data.
- Even though job satisfaction and engagement numbers were relatively high, 2 out of 5 employees – or 40% – expressed the possibility of looking for employment outside of their current employer within 12 months.
SHRM research also identified 5 top contributors to employee job satisfaction:
- Respect for all employees at all levels
- Compensation/pay
- Trust between employees and senior managers
- Job security
- Opportunities to use their skills and abilities at work
Employee retention strategies
Knowing what factors are the key to your employees’ happiness will do great things for your organization – and help you successfully manage talent retention. Here are 6 key strategies to consider:
1. Recruitment
Your organization’s recruiting practices can influence your employee turnover for better or worse. SHRM says the research shows that presenting applicants with an accurate, realistic job preview during the recruiting process will help improve staff retention.
2. Socialization
Employee turnover is traditionally highest among new hires. Implementing strong socialization practices as part of your onboarding program can help new team members feel like an integral part of the company – and improve their chances of staying. Shared and individual learning experiences, formal and informal get-to-know-you activities and mentorship opportunities between new hires and seasoned employee are all good plans to consider.
3. Training & Development
Training and career development opportunities are key to retaining employees. If you don’t provide a chance for workers to continue on their learning path and improve their skills, they’re more likely to leave.
4. Compensation & Rewards
Compensation and rewards can have a profound impact on employee retention. SHRM outlines 3 potential compensation strategies that employees can follow when it comes to pay and rewards:
#1 – Be the market leader for compensation and rewards.
#2 – Tailor rewards to personal needs in an individually-based pay structure.
#3 – Link rewards to retention. For example, offer vacation hours based on seniority; hand out retention bonuses to long-standing employees; or link benefit plan payouts to years of service.
5. Supervision
Studies show that an employee who’s treated fairly by his supervisor is the most significant factor in staff retention. So if you’re looking to make an investment in a specific talent retention initiative, consider a program that focuses on supervisory/management training and communication skills development.
6. Employee Engagement
Engaged employees are satisfied employees who take pride in their work and care about contributing to their organization’s success. One SHRM study revealed that highly engaged workers are 5x less likely to quit their job compared to employees who are disengaged.
What employee retention programs have been successful for your organization? Share with us!