Employee Relations

Increasing Employee Retention

Close-up image of business people giving high five after finishing work on big project

As a Human Resources manager, you know that employee retention is one of the most important aspects of having a reliable and seasoned workforce. After the so-called “Great Resignation” over the last two years, retention is of the utmost importance to maintaining your company’s positive corporate culture, and more importantly increasing productivity.

When employees leave, it can cost the company monetarily in terms of both lost productivity, time-intensive hiring processes, and ever-growing training costs. In addition to damaging morale, it can be difficult to find qualified replacements for top performers at a moment’s notice. Here are a few key strategies from successful HR professionals to increase employee retention:

Keep it fun and positive! 
Employees are more likely to stay with a company if they enjoy their work and feel valued by their employer. A positive work environment is one where employees feel respected, appreciated, and supported. It’s also a place where employees feel like they can contribute to the company’s success and make a difference.

Make it worthwhile. 
Employees need to be paid fairly for their work, and they also need to have access to benefits that are important to them. This could include health insurance, retirement plans, paid time off, and tuition reimbursement.

Make them driven. 
Employees want to feel like they are growing and developing in their careers. By providing opportunities for growth and development, you can help employees stay engaged and motivated. This could include offering training programs, tuition reimbursement, or mentoring programs.

Reward effort. 
When employees do a good job, it’s important to let them know. Recognition and rewards can be as simple as a thank-you note or a public shoutout. They can also be more formal, such as a bonus or a promotion.

Listen to them. 
Employees want to feel like their voices are heard. By taking the time to listen to employee feedback, you can learn what’s important to them and make changes to improve the work environment.

Create team members. 
Employees are more likely to stay with a company if they have a good relationship with their manager and other employees. By taking the time to get to know your employees and build relationships with them, you can create a more positive and supportive work environment.

Be Flexible. 
Many employees appreciate the ability to work from home or have flexible hours. This can help them to balance their work and personal lives, which can lead to increased job satisfaction and retention.

Be inclusive. 
Employees who feel like they are part of a welcoming and inclusive workplace are more likely to be happy and productive. By creating a culture of inclusion and diversity, you can attract and retain the best talent from all backgrounds.

By following these strategies, HR managers can help to improve employee retention and create a more productive and successful workforce. By taking the time to implement these effective retention strategies, HR managers can help to create a more productive and successful workforce.

Communication is the Silent Key to Employee Retention

Business woman with formal wear using her mobile phone and talking with her african coworker in train station.

As an employee, there’s nothing more satisfying than working for a company that values your contributions and invests in your growth. Employee retention is a critical factor for the success of any organization, and effective communication plays a vital role in keeping employees engaged and motivated.

Why Communication Matters in Employee Retention:

  1. Building Trust and Engagement:
    • Open and Transparent Communication: Foster an environment where open and transparent communication is encouraged. This helps build trust between employees and management. 
    • Regular Updates: Provide regular updates about company goals, objectives, and any changes happening within the organization. This keeps employees informed and engaged.
  2. Recognizing and Valuing Employees:
    • Feedback and Recognition: Regularly provide feedback to employees about their performance, strengths, and areas for improvement. Recognize and appreciate their efforts and achievements. 
    • Personalized Communication: Tailor communication to individual employees, taking into account their preferences and communication styles.
  3. Supporting Career Growth:
    • Development Opportunities: Communicate with employees about their career goals and aspirations. Provide them with opportunities for professional development and growth.
    • Performance Conversations: Engage in regular performance conversations with employees to identify areas where they can enhance their skills and knowledge.
  4. Encouraging Work-Life Balance:
    • Flexible Communication Channels: Provide flexible communication channels that accommodate employees’ work-life balance needs. This could include remote work options, flexible hours, or alternative communication methods.
    • Respect for Personal Time: Encourage employees to prioritize their personal time and respect their boundaries outside of work.
  5. Resolving Conflict:
    • Active Listening: Practice active listening when employees express their concerns or conflicts. Show empathy and seek to understand their perspective.
    • Constructive Feedback: Provide constructive feedback and guidance to resolve conflicts, ensuring a fair and respectful resolution.

Practical Tips for Enhancing Communication:

  1. Foster Open Dialogue:
    • Encourage employees to share their thoughts, ideas, and concerns openly. Create a safe space where everyone’s input is valued and respected.
  2. Use Various Communication Channels:
    • Utilize a mix of communication channels, such as face-to-face meetings, emails, instant messaging, and video conferences, to ensure effective communication across different contexts and preferences.
  3. Train Managers on Effective Communication:
    • Provide training and support for managers to enhance their communication skills. This includes active listening, providing feedback, and managing difficult conversations.
  4. Establish Regular Check-ins:
    • Schedule regular one-on-one meetings between employees and their managers to discuss progress, challenges, and goals. This allows for ongoing communication and support.
  5. Promote Collaboration:
    • Encourage collaboration and teamwork by creating opportunities for employees to work together on projects or cross-functional teams. This enhances communication, builds relationships, and fosters a sense of belonging.

Effective communication is a fundamental aspect of employee retention. By prioritizing open and transparent communication, recognizing employees’ contributions, supporting their career growth, promoting work-life balance, and addressing conflicts, organizations can create a positive and engaging work environment. When employees feel valued, heard, and supported, they are more likely to stay committed and contribute to the long-term success of the company.

Embracing Neurodiversity: The Next Frontier in DEI

The evolution of Diversity, Equity, and Inclusion (DEI) initiatives in the workplace continues as more businesses realize the benefits that come along with them. With diverse companies being 70% more likely to attract new markets, it’s clear why DEI is now a priority. Aside from the potential revenue benefits, DEI has become an important step toward employee retention. A survey from Glassdoor revealed that 76% of both job seekers and employees cited a diverse workforce as significant when seeking job opportunities, further enforcing DEI’s importance. Companies have taken these results to heart, as more than 80% of companies have reported their implementation of DEI initiatives. Even so, there is one underrepresented group that deserves inclusion and yet is often overlooked: neurodiverse employees. 

Neurodiversity refers to a range of conditions that includes but is not limited to: Attention deficit hyperactivity disorder (ADHD), autism spectrum disorder (ASD), dyslexia, dyscalculia, and obsessive compulsive disorder (OCD). As 15 to 20% of the global population is considered neurodiverse, neurodiversity is by no means a rarity, and it’s something companies should expect to face as they grow and recruit more employees. Despite this fact, a 2023 survey found that 51% of neurodiverse employees have either quit their jobs or are willing to quit because they feel unsupported at work. Not only does this lack of support further fuel the high turnover rates and current labor shortage, but it is also a sign of a negative company culture that can damage the entire workplace. All companies stand to benefit from nurturing teams of diverse employees, and that includes neurodiverse individuals. 

Unfortunately, many neurodiverse employees still face stigma in the workplace, which may contribute to the 51% that are willing to change jobs. A recent survey of 500 neurodivergent employees revealed that 61% experienced stigma at work. The respondents also felt they had to hide their neurodivergent identity with 19% citing negative experiences when they did disclose it in the past. While some may argue that employees should be more transparent, these fears stem from a very real place because not only are they facing shame in the workplace, but they also risk not getting hired in the first place. Research from The Institute of Leadership and Management reveals that there is such little understanding of neurodivergence that “half of all leaders and managers would not employ a neurodivergent person.” There are several benefits to hiring neurodivergent individuals, but leaders must push past preconceived notions to experience them. 

Companies that make an effort to include neurodiverse employees in their DEI initiatives will not regret their decision. They will soon find that these employees bring high-quality work, creativity, and innovation through new perspectives that leaders might have otherwise missed out on. One example is shown among dyslexic employees, who bring strengths such as creativity and analytical reasoning to their roles. Employees who have ASD are also valuable in the workplace as they make fewer errors and have been found to be 90 to 140% more productive at work when compared to neurotypical employees. These are just a few of the many advantages that companies will experience when hiring and accommodating neurodiverse talent. 

The bottom line is that neurodiverse talent often brings unique individual strengths to the workplace. DEI is already well-known as a successful tool for utilizing the strengths that come from diverse groups. Now it’s time for leaders to bring these initiatives to neurodiverse groups. When given the proper support they need to succeed, these employees will be loyal to the team while contributing to the company’s overall success. 

Out of Sight, Top of Mind: Engage Hybrid Employees

A team discovers how to successfully engage hybrid employees.

Thanks to the COVID-19 pandemic, the workforce has changed substantially, and even the rise of RTO mandates can’t seem to shift it back. A report from The Conference Board reveals that 87% of HR professionals experienced positive effects from their hybrid work regarding both work-life balance and employee retention. And with 65% of employees valuing job flexibility almost as much as salary, HR leaders cannot ignore these benefits of the hybrid model. But with a “new normal” comes new challenges, including how to engage hybrid employees when the team is split between the office and their homes.

Celebrating Wins Across the Hybrid Team

Even when a worker is remote for the time being, they still deserve recognition as much as in-office employees, with “spontaneous praise and “formal recognition” causing a leap in employee feelings of appreciation by 172% and 355%, respectively. Meanwhile, 74% of employees are less likely to remain with the company if they don’t receive meaningful recognition.

The importance of recognition cannot be understated. But how can your recognition strategy engage hybrid employees as they work from different locations?

Strengthening Team Bonds with Peer Shoutouts

For starters, leaders can try Peer-Nominated Recognition Programs, where employees can congratulate their team members on their performance both in and out of the office. Rewards can be given virtually as well, either by promoting it on social media or adding digital badges to employee profiles on work platforms.

Shining the Virtual Spotlight

Virtual meetings are also a great place to spotlight employees who have high-performance levels. One employee can be recognized, or multiple team members can bring up the names of their peers they saw exceeding their goals.

Rewarding Achievements with Thoughtful Gestures

To accomplish larger projects, consider offering gifts that can either be presented at the office or sent to the employee’s home. Virtual gift cards are also a great way to reward employees working virtually.

By implementing thoughtful recognition strategies that include both virtual and in-office rewards, leaders can foster a culture of appreciation that keeps all employees, no matter their location, motivated and engaged.

Building a Culture of Appreciation

In today’s hybrid work environment, recognizing and engaging hybrid employees is crucial to maintaining a motivated and connected workforce. Implementing inclusive recognition strategies like peer-nominated programs, virtual spotlights, and personalized rewards ensures that all employees feel valued. By adapting to the needs of a dispersed team, HR leaders can foster a culture of appreciation that boosts morale, retention, and overall success.

Remote Work Is on the Decline. Is It for the Best?

Ever since the pandemic and the end of lockdown in the U.S., remote work has been on the decline. The beginning of 2021 saw remote work hit its peak at 37% of households having at least one member working from home. Now, that number has plummeted to less than 26% of U.S. households. Even though the idea of remote work is popular amongst employees, it’s a frustrating topic for employers, with 43% of companies restricting their remote work policies over the last year. A recent survey from ZipRecruiter revealed that employers advocated for return-to-office (RTO) mandates due to increased difficulty in monitoring employees and mixed judgments on productivity levels. These conflicting perceptions have led to a sort of tug-of-war in the workforce. While more companies adopt stricter in-office work policies, they are also having to adapt to a national labor shortage. According to the U.S. Chamber of Commerce, there are 1.5 million fewer Americans in the workforce today than there were in 2020. While RTO mandates are not causing this shortage, they are not appeasing the issue either. 

Companies that prioritize bringing employees back into the office are allowing themselves to feed into one of the main reasons many Americans are not returning to work. One survey by the U.S. Chamber found that 27% of unemployed Americans specified their reasoning for not returning to work as needing to stay at home to care for children or other family members. Coupled with the increased lack of accessibility to reliable childcare, the reduced number of opportunities for remote work is further pushing these Americans away from the workforce. Many employers are aware of how in-office policies impede their recruitment efforts, and yet those policies remain in place. This begs the question: Do companies really lose more than they gain from remote work that they are willing to endure the ongoing battle with recruitment? 

The defense for stricter in-office policies is that employees are the most productive when they are in the office, but that is not always the case. While there are employees who prefer to work in the office, many employees (mainly those from younger generations) feel more productive when working from home. According to a report from Owl Labs, millennials working remotely experience more productivity while boomers actually feel the least productive at home, with two-thirds of workers overall feeling more productive with remote work. 

For those who want to work from home, their sentiments toward this more flexible work style are so strong that many are willing to leave their jobs if remote work is not an option. One survey of over 12,000 respondents found that the ability to work remotely led to up to 20% of an increase in happiness while returning to the office led to a decrease in happiness. The importance of happiness is not lost on management, as there has been a rising trend in promoting employee wellbeing, and for a good reason. When employees are happy, companies always stand to benefit. In fact, happiness has been found to lead to a 12% increase in productivity, while distress led to a 10% decrease. To put it simply, employees who work remotely are happier, leading to an overall more fulfilling life and more motivation to be productive at work. 

Although research consistently reveals the benefits of remote work, many companies are still hesitant to keep remote work policies. One study from Microsoft noted remote employees experienced an increase in remote productivity, but 85% of leaders had a difficult time believing that to be the case. 

 No company is required to offer remote work to their employees. However, the statistics are clear: leaders stand to gain more than they would lose by offering remote work options. Not only that, but they will be more likely to attract talented and loyal employees during a national labor shortage. 

Unpacking EVPs: More Than Bells and Whistles

HR professionals hold the key to unlocking a vibrant and resilient workforce. By seamlessly integrating strong Employee Value Propositions (EVPs), fostering dynamic HR and marketing collaborations, offering impactful education benefits, and cultivating a thriving learning culture, organizations can pave the way to sustained success.

Redefining EVPs for Lasting Impact

In the wake of the Great Resignation and a fiercely competitive labor market, simply responding to employees’ immediate demands can be a short-sighted strategy. While material offerings like compensation and remote work are easily implemented, their impact on retention is often fleeting and can lead to a race to the bottom. Instead, a well-rounded EVP should address four core components: material offerings, opportunities for growth, connection and community, and meaning and purpose.

Material offerings include not just compensation, but also physical office amenities, commuting subsidies, and flexibility in work arrangements. Opportunities for growth encompass training, new role assignments, and career development pathways. Connection and community are fostered through a culture of appreciation, mutual accountability, and social relationships, making employees feel part of a larger mission. Finally, meaning and purpose align with the company’s aspirational goals, giving employees a deeper sense of why their work matters. This holistic approach not only attracts talent but also builds a sustainable and engaged workforce.

Education Benefits for Retention

Education benefits, such as tuition reimbursement or free degree programs, are more than just perks; they’re strategic tools for retention and career advancement. Take Papa John’s “Dough & Degrees” program, for instance. By offering no-cost education opportunities, the company has significantly boosted retention rates and enabled numerous promotions. For HR professionals, implementing similar programs can bridge skill gaps, enhance job satisfaction, and inspire long-term loyalty among employees.

Cultivating a Learning Culture for Success

A vibrant learning culture is the heartbeat of any thriving organization. Effective Learning and Development (L&D) programs that emphasize upskilling and reskilling not only prepare employees for future roles but also enhance retention. Companies with robust learning cultures see a remarkable boost in employee engagement and loyalty. For HR professionals, championing L&D initiatives is essential for fostering continuous improvement and innovation, ultimately supporting the organization’s strategic goals.

The Path to Sustainable Success

For HR professionals, weaving together EVPs, collaborative efforts with marketing, education benefits, and a strong learning culture creates a powerful strategy for recruitment and retention. These interconnected elements don’t just build a motivated and skilled workforce; they position the organization as a top employer in a competitive market. By focusing on these strategic areas, HR can drive sustainable business success and cultivate a dynamic, engaged, and loyal workforce.

Retention Is Not Just a Trending Buzzword in HR, Here’s Why

Shot of two businesspeople shaking hands during a meeting in an office.

Given all the tech layoffs and the Great Resignation that have been dominating headlines recently, we have been hearing a lot about employee retention. However, “Retention” is not a new concept, even though it may be a trending buzzword in the human resource industry. In fact, a good employee retention program has been a cornerstone strategy for not only retaining employees but also attracting them for decades. Why? Employee retention is a serious issue that many organizations have faced or will face.

There are many reasons employee retention is key to a healthy business. One of the main reasons that makes sense from an economic standpoint is that employee turnover is costly. It is more efficient keeping a quality employee than trying to recruit and then training another replacement to perform at the same level. Not only that, but unexpected employee turnover can severely disrupt overall performance within your organization. Furthermore, on-going employee turnover is time-consuming, can affect the morale of the company, lead to bad performances, and decrease your ability to attract new talent. In addition, there are record shortages of skilled employees and it is increasingly difficult to attract them, especially if your business has a reported high turnover rate.

Coming up with a good employee retention program is a key strategy for retaining the employees you want to keep on board, and it all starts with the basic constructs of transparency and fairness. Transparency, often an overlooked construct, leaves lasting impressions on your employees and potential hires. Fairness along with transparency with your employees and potential hires builds trust within your organization. For example, fair compensation, employee/employer trust, job security, opportunities for growth, and the ability to use special skills have been reported as top factors in job satisfaction by employees. Another key factor in a good employee retention program is engagement. Engaging your employees helps further build enthusiasm as well as helps motivate them to be productive. Finding different ways to engage employees can be time consuming but the payoff is worth it. Organizations that focus on employee retention see increased productivity, improved employee morale, improved quality of work, and reduced turnover, which makes it worth their time and financial investment.

In a nutshell, a good employee retention program involves strategizing on how to keep employees motivated and focused so that they are productive and beneficial to the organization. By prioritizing employee retention, organizations are retaining their talented and motivated employees. Ultimately, while many buzzwords come and go, retention will remain a top priority for HR leaders and will probably be “trending” for years to come.