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.
