What is Employee Retention and What Factors Contribute to it

What is Employee Retention and What Factors Contribute to it

Employee’s retention is referring to an organization ability that how it retains their employees in the long run. An organization main goal is to develop such employee retention strategies that are fulfilling the basic needs and requirements of employees to enhance their job performance and also cutting the additional cost that is spending in the hiring and training of the employees.

However, it is common for the organization to face the turnover, mostly those organizations face a higher turnover than others due to the factor of wages, working environment, job nature, and other factors.

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Why is it important to keep your employees?

Employees play an important role in any organization growth and success. Organizations always need such talented employees that could do complex and big tasks in a professional way and timely. Business managers always need to develop such mechanism and strategies to easily understand about the employee’s key performance indicators so that they can easily assess the performance of the employees and can develop such policies that help in increasing the performance of the employees and keep employee retention rate more.

Achieving organizational goals is one of the most important factors in employee performance. If we talk about the employee’s performance factors that mostly include meeting the deadlines, achieving sales targets and build the brand name by providing excellent customer services.

Organizations cannot afford to lose such employees that are providing value to their organizations. So here comes the factor of employee retention that always focuses to retain the best employees for the organizations.

>> Recommended reading: Employee Engagement Activities – Facilitating a More Productive Corporate Culture

10 Tips for Keeping Your Employees

Here we are discussing how managers can focus on employee retention and can retain the best employees for their organizations, according to an article from Forbes.

1. Ensure a Positive Work Environment

As a business manager, you should always ensure to provide a positive work environment for your employees. Always try to create a positive and energetic work environment for your employees, appreciate their work, keep motivated to your employees, reward your high performer employees with great incentives and always try to recruit such employees that could add value to your organization performance.

2. Hire the Best and Committed Employees

As a recruiting manager, you should always hire the best and committed employees for your organization. You should hire such candidates who want to grow with your organization not only getting the experience. While selecting the most suitable candidate for your organization just not focus on skills but also consider employee compatibility with organization culture, managers and co-workers.

3. Offer Competitive Salary Packages along with Fringe Benefits

Always offer your employees competitive salary packages according to their skills, knowledge, qualification, experience, and seniority. You can also retain your employees by offering fringe benefits such as life insurance, health insurance, gratuity fund, and a good retirement plan.

4. Provide Training

You should always make sure to provide training to your employees to enhance employee’s skills, knowledge, and experience. In the current technology era, conduct such training that can increase the technical knowledge and technological skills of your employees. This can also increase the employee retention rate in your organization.
You can conduct training through classrooms, virtually, seminars or by giving books, articles or DVD materials.

5. Listen to Your Employees

Always listen to your employees in their professional and personal life. If you have some sick employees you can inquire about their health, send them flowers and best wishes for their soon recovery.

You can also conduct interviews with your employees individually and ask the reasons why they want to stay with your organization or leave your organization.

6. Always Appreciate your High Performer Employees

Always appreciate your high performer employees by offering them good incentives, tours of different countries with their families, or by giving gifts to their children’s.

7. Communicate Properly

Always communicate with your employees properly and understand the things what they are saying. Always avoid the poor communication that it leads to misunderstanding, reduce employee’s performance and can increase the turnover.
Always make sure to clear all the company goals and annual results with your employees and take the suggestions to achieve the organization goals in a better way to grow the performance of the organization.

8. Find out the Employees leaving reasons

Always conduct the final interviews before the leaving of your employees and ask the reasons why they are leaving you. Such interviews and findings can help you in employee’s retention in the future. By taking their feedback you can also review your company policies and can change it for your future employees.

9. Workplace Flexibility

Always provide your employees with workplace flexibility. You can ensure flexible work arrangements for your employees. You can provide your employees with the facility of work at home. In this way, your employees feel flexibility by working at homes.

10. Assign New Tasks

Doing repeating tasks can bore your employees. So make sure to design the job descriptions with challenging tasks and new tasks. Some employees always seek challenging tasks. Always encourage your top performer employees with new and top profile projects. This can also increase employee retention in your organization.

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How to analyze the Employee Turnover Rate?

Employees turnover rate shows that how an organization hires and fire their employees. If you have a low employee turnover rate that shows that you have better employee retention policies and providing them with a good and flexible work environment.

A high employee turnover rate always shows the problems in your working environment and you may also face the financial loss by spending on new advertisements, interviewing, hiring and conducting training of your new employees.

To calculate the employee turnover rate, you need to check the human resource record for a specific time period. Count the number of employees that have been leaving your organization in that specific time.

To get the exact figures you can divide the number of employees at the end of the specified period. Multiply this figure with 100 to show the rate in percentage.

For example, assume your company has fired 100 employees over the year and employs 400 staff members at the end of the year. The company’s employee turnover rate would be 25 percent ([100/400] X 100).

In Conclusion

Employeer retention activities take on many forms and don’t stop with the ones mentioned above. Used wisely, employee retention are one of the most valuable tools in an employer’s toolbox, and generate immense positive impact on the overall culture of the organization.

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