Grace Smith
February 13, 2024

67% of employed job seekers planned to quit in 2023. [Joblist's 2023 United States Job Market Trends Report]

What could be the reason?

This could be a sign for all of us to take a better look at how we look at human resources and where we are going wrong.

Employee retention is the biggest jargon of the decade, and companies are trying to figure out the best ways to make their employees stay. If you are here for the same reason, then this blog's got you covered.

What We Mean When We Say Employee Retention?

Employee retention really is the ability of an organization to make their employees stay with them for a longer period of time.

In today's time, where the workforce usually consists of individuals from Millenials and Gen Z, employees tend to change companies every few years. Because of this reason, companies have become more prudent in developing strategies to retain employees belonging to these demographics.

What worked for the older generation just  won't cut. As employee turnover rates increase year by year, it is high time companies start giving employee retention the importance it deserves. 

Top 10 Employee Retention Factors to Help you Improve Retention

Coming up with employee retention strategies is no easy feat. You will have to know your employees well to know what will and will not work for them. But before you dive deeper into the specifics, here are some age-old techniques to help you keep your employees:

1. Make sure you hire the right employees

employee retention factor 1

To attract great people who align with your culture, showcase your culture on your careers page. For instance, mention perks such as monthly massages, onsite exercise centers, or generous parental leave policies.

Additionally, listing awards like "Best Places to Work" recognition can be beneficial. To receive applications from a more diverse group of candidates, engage with professional organizations, community college job offices, and other relevant groups.

Offer professional development, flexible schedules, and the option to work from home to cater to the needs of individuals from various backgrounds. Highlighting a strong culture of respect is crucial.

Moreover, ensure there is a significant emphasis on recognition. Nearly half of millennials desire to be rewarded or recognized for their work at least once a month.

2. The Salary you provide must be competitive and fair

Ensuring your employees are compensated fairly and competitively is crucial for retention. Stay informed about industry standards and ensure your salary packages are aligned with or exceed these benchmarks.

This not only shows your employees that you value their contributions but also helps prevent them from seeking opportunities elsewhere where they might be offered more attractive compensation. Beyond base pay, consider bonuses, raises, and other financial incentives that reward outstanding performance and dedication.

Remember, a competitive salary combined with a fair and transparent compensation structure fosters a sense of appreciation and loyalty among your team members, making them more likely to stay and grow with your company.

3. Work-life balance is key

Find a work-life balance for yourself and your staff. Work-life balance is becoming a bigger reason employees are seeking for new employment or turning down opportunities, especially after the pandemic affected how people value their jobs. Working from home, having flexible hours, or shorter workweeks can help achieve work-life balance, as can advising employees not to check email or answer business calls at work. Considering workers' time off is crucial to successful working relationships.

4. Find ways to increase employee engagement

One of the best ways to retain employees is to increase their engagement. Unmotivated employees might diminish confidence, production, and business. To give your employees a voice, assure them that their opinions matter.

Allow your staff to provide honest feedback when they feel secure. Your staff may know how to accomplish a task better than you if they've done it longer.

Giving them the ability to discuss and improve workflow and the workplace will make them feel like they contributed to the company's culture and keep them motivated.

Don't compel them to conduct unnecessary or pointless things. Being forced to pursue social or other activities outside of work might cause employees to quit. Varying workplaces require varying employee engagement. Asking employees what they want might help avoid this issue.

The best way to increase your employees' engagement is to start by measuring and assessing their engagement levels. And you can do this with employee surveys.

ThriveSparrow lets you create and share engagement surveys in 2 minutes, with readily available research-backed question banks. The platform compiles this data and gives a comprehensive overview of department-wise engagement to help guide your engagement efforts.

ThriveSparrow's Heatmaps
ThriveSparrow's Heatmaps gives a color coded view of engagement levels across departments and reporting factors.

5. Focus on the right training and development

Giving personnel regular feedback on their work may help them improve professionally, such as learning new abilities. Helping employees gain new skills is crucial as technology changes how we operate.

Since company demands vary, workers "upskill," learning new skills. Prioritize employee professional development. Allow time for virtual meetings, ongoing education, and fee reimbursement. Remember succession planning. This can boost your leadership and career.

6. Allow flexible work arrangements

Even after opening their offices, many companies recognize that some employees still desire to work from home, at least part-time. If they can't use that option, workers may resign.

Don't hesitate to consider what you can offer employees who can't work from home full-time. Shorter workweek? Free time? A method to work from home part-time? These can calm your staff and keep them engaged.

7. Open and clear communication

Real, honest, and open communication between a business and its personnel is crucial for informing them of company happenings, expectations, and responsibilities.

Both in-house and remote workers experience this. When a company or the economy is struggling, this is crucial. Employees want to be encouraged and connected and not shocked by workplace changes. Employees should then discuss their concerns with their managers. Everyone should be able to discuss work, employment satisfaction, etc.

8. Acknowledge accomplishments

Do something fun with your coworkers when they hit a big work milestone, like finishing a big project early or having been at the same job for five years. No matter if you have to party online, it can still be a special time for everyone.

Even a simple thank-you from peers or managers can count!

Implementing a simple employee recognition system can go a long way in enhancing your employees' engagement and morale, and keeping them long-term.

For example, ThriveSparrow is an employee success platform that can help you facilitate peer-to-peer recognition and reward employees for their achievements. Explore more about ThriveSparrow's Recognition capabilities here.

ThriveSparrow's Kudos Module
ThriveSparrow's Recognition Module empowers your people to recognize and appreciate each other's achievements, thereby motivating them and uplifting their experience.

9. Build the right company culture

One of the most important aspects of retaining efficient employees is building the right company culture. Make it people-focused. Whatever decision you make as a company, think about how it will impact the employees. When employees realize the value you place on them, the employee retention rates will soar through the sky!

10. Teamwork is dreamwork

You should ask all of your employees, not just the best ones, for their thoughts and ideas.

Encourage teamwork by making it possible for people to work together, taking into account different ways of doing things, and letting everyone make decisions and course changes as required. Teamwork increases employee engagement which in turn increases employee retention rates. 

One way that can help you identify and curb retention is by running eNPS surveys. With it, you can measure your employees' loyalty, identify what's the reason, and use the feedback data to drive you retention efforts.

Employee Retention is the Game-Changer

Once you gain an idea of what works and what doesn't work for your employees, you have successfully cracked the code of employee retention.

This is an area where we at ThriveSparrow can help. We help you conduct customized surveys to gauge the mindset and preferences of your employees. The information you get from these surveys can then be used to create customized employee retention strategies that fit your organization like a glove.

Sign up for free or just give us a call and let us get the ball rolling!