5 Best Strategies for Employee Retention
Employee turnover is expensive on many levels to the employer. The average cost of replacing an employee is 21% of their annual salary. It is no wonder then that organizational psychology has turned this into one of their main research topics. The good news is that turnover can be significantly decreased through some simple scientifically-backed strategies.
There is a certain degree of overlay between recruitment and retention incentives. Positive work environment and opportunity for growth lie at the core of decreasing attrition rates. However, these are complemented by other factors like sustainable workload and periodic pay raises. It is essential to tackle employee retention from different angles simultaneously to achieve positive results.
1. Positive Work Culture
Work culture is one of the cornerstones of a successful and long-lasting relationship between employer and employee. There is a large body of research confirming an association between a supportive work environment and employee retention. A more in-depth look into the issue has revealed that organizational commitment and person-organization fit act as mediators of this relationship.
This implies that shared responsibility for each other and the common good between coworkers and supervisors shelters employees from overworking and stress. If people develop a positive attitude toward their work and company, they will be more likely to stay.
2. Team Building Activities
A positive work environment is to be nurtured by superiors and colleagues alike. That is why HR specialists should invest in boosting cooperation and communication between coworkers. One way to achieve this is through team-building activities.
When done right, these can not only increase retention but productivity as well. Having employees spend time together outside of work helps them discover their shared interests and sets the foundation for genuine friendships. While team-building activities help build trust and develop a sense of belonging to a group.
3. Sustainable Workload
Ensuring a sustainable workload for employees is a leading factor in diminishing attrition. Researchers have confirmed time and time again that turnover intentions are related to workload and other job stressors.
To achieve a sustainable workload for employees, start by assessing their daily routine. Try to identify tasks that disrupt the workflow and keep an eye out for any employee who might be overworked. There must be an equitable distribution of work between individuals and departments alike.
Meetings can take up a lot of unnecessary time, so only keep the ones that are absolutely necessary. Encourage emailing, direct phone calls, or in-person talks for discussing urgent matters.
Another activity that ends up devouring a lot of precious work time is the requirement of employees to prove that they are working. Filing reports or being closely monitored by supervisors can negatively impact their productivity and conveys mistrust on behalf of the employer.
4. Opportunities for Professional Development
Assurances of support for participation at Conferences and Networking Opportunities will attract recruits, but you must actually deliver on the promise for an employee to stay. Professional development is particularly important to physicians. They are highly driven by improving their knowledge and developing their skills.
The high number of family practice jobs in California creates a highly competitive market for employers and employees alike. That is why a solid physician retention plan is crucial in keeping star employees.
5. Pay Raises and Variable Pay Benefits
While an attractive salary might be very efficient for recruitment, it is not enough for retention. To affect turnover, the employer must go beyond the base salary. This aspect is especially important when promoting employees. A new job title can be flattering, but if it is unaccompanied by a considerable salary raise, it will not be enough.
Researchers have identified a statistically significant correlation between an increase in base salary and employee escalation. They have determined that a 10% base salary increase is associated with a 1.5% higher likelihood of employees staying after their next promotion.
There is also the option of variable pay benefits. Many employers want to keep fixed costs and prefer to maintain base salary. In this scenario, employees can benefit from variable payouts. Such a plan can be implemented on several considerations, like performance, holidays, and organizational achievements. The number of organizations that prefer this route keeps increasing over the years.
Final Thoughts
The importance of keeping skilled employees has been under the limelight of organizational psychology research. Thus, HR personnel have a treasure trove of scientific data upon which to build their employee retention plan. It is crucial to attack the problem from different angles. The relationship between company and employee must be nurtured over time to prevent turnover intent.
