5 ways to increase employee retention in your organizations

Do you want your employees to stick around? It’s clear your employees are a valuable investment for your company, and for the future of your organization as well, so something you need to know as a business owner is that employee retention is often harder than hiring them. Hiring the right people and keeping them for the longest time possible is essential for you to build a successful business.

According to recent statistics nearly 70% of organizations report that workers turnover has a negative financial impact due to the cost of recruiting, hiring, and training a replacement or new employee, and also the overtime work of current employees that’s required until the organization can fill the position. 

It’s been estimated that a lost employee can cost 6 to 9 months of that employee’s salary on average, so there’s a clear need for employee retention strategies.

5 ways to increase employee retention in your organizations

1 | Give positive feedback 

Employees need positive feedback to know how they are doing their tasks and also to improve their work, so constructive advice is something you should consider giving when it’s deserved for the workforce.

Positive feedback should be given frequently to motivate employees and to give them the determination they need to do their best. But constructive and corrective feedback is also important, particularly when there’s an urgent issue that needs to be nipped in the bud.

2 | Encourage creativity

A lot of companies say they value creativity, but they don’t necessarily have any initiatives or policies organized to support it. Google, for instance, has a 20% program in which their employees are given the opportunity to work on side projects that interest them.

3 | Good salary and benefits

This reason was followed by career advancement and after that we find new opportunities, better benefits, and the location. Is not always about the money, but according to a collection of recent surveys on employee retention, only 24% of employees say that financial stability motivates them to stay in a job. 

On the other hand, 56% of employees say that health care and insurance concerns keep them in their job. Benefits that are actually beneficial matter. Money matters. What you offer to your team in this area should be comparable to other businesses in your industry and country.

You might be interested in:  Classify your employees: the difference between full time and part time

4 | Give opportunities to grow

Employees consider listed professional growth opportunities as one of their highest drivers of engagement, at the same time employees leaving their jobs listed lack of growth opportunity as a reason for leaving. If your company has high retention it’s probably because you encourage career development opportunities.

5 | Make sure managers are not making good employees to leave

“People leave managers, not companies.” Management affects how engaged employees are, and how likely they are to stay at your company. Be mindful when you name managers, because when it’s done wrong nothing fixes that bad decision. 

Midtown HR is the company behind a hundred happy companies. We´re focused on simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team. Let’s talk!