6 Proven Tips To Improve Employee Retention

The competition for talent remains intense

During 2021’s Great Resignation, a record number of Americans quit their jobs, impacting every sector and level of talent, and leading to fierce competition to recruit and retain employees – which continues to be a huge challenge. As of March 2022, there were still 11.5 million job openings – more job openings than there are unemployed people – and the competition for talent remains intense. Now that 90% of organizations are trying to fill open positions, hiring managers are facing difficult searches to recruit talent, while simultaneously focusing on improving retention. 

With the ongoing challenges around recruiting and hiring new talent, how can organizations boost employee happiness, satisfaction, and loyalty so their current team members won’t leave? 

A recent McKinsey report showed a disconnect between why employers think their employees are leaving and why people actually leave. Employers cited compensation, work-life balance, and poor health, while employees said they didn’t feel valued by their organizations or managers, or they didn’t feel a sense of belonging at work. Employees are hungry for connections and relationships, wanting meaning and purpose in their work. Managers should utilize conversations with employees, anonymous polls, exit interviews, etc. to better understand (and resolve) these issues. 

Compensation is important, but it’s not the main reason people quit. While employees should be paid competitively and equitably, they should also be given opportunities for advancement, collaboration, and satisfaction at work. Provide training and development, mentoring opportunities, and a supportive environment, in addition to a competitive paycheck. This multi-layered approach to being an employer of choice will help you retain employees. 

Conduct employee surveys to determine employees’ needs, wants, and values. For instance, more than 1.5 million mothers haven’t returned to work because they don’t have childcare, and 20% of employees said childcare benefits are their top priority. A recent poll showed that people want more paid time off, mental health resources, better health insurance, and financial wellness training. By meeting these expectations with forward-thinking benefits packages, you’ll differentiate yourself from the competition.

Employees care about relationships, connectivity, and belonging, so strengthen culture and connections on your team. Create a culture where health, inclusivity, support, collaboration, and balance are emphasized and prioritized. Consider how you start and end meetings, how you collaborate and celebrate. Protect time and reduce stress by blocking off “no-meeting days.” Even small changes can make a real difference when it comes to culture and helping employees feel more connected to each other and the organization.

When was the last time you asked an employee if they are happy or if they were thinking of leaving? We’re all familiar with exit interviews, but by the time managers have these conversations, the employees are already leaving. Consider holding ”stay” interviews – where leaders talk to current employees to determine how they’re doing and determine what’s bothering them – to better understand who may be at risk for leaving. Then, create a personalized plan to get them to stay and re-engage. For example, if an employee tells you they’re concerned about a lack of growth opportunities, consider what you can do to increase their skills and exposure even if you can’t immediately give them a formal promotion. Recognize that there is no one-size-fits-all retention plan that will work with everyone, so tailor your approach for each employee.

Don’t discount the importance of sincerely thanking employees for their efforts. Acknowledge their hard work. Express your appreciation – especially when they go above and beyond for the company, team, or customers. Praise hard workers at staff meetings, and spotlight outstanding employees on your social media platforms. Give financial bonuses if your budget allows. Consider giving gift cards to local restaurants, coffee shops, or spas. Send handwritten notes about specific things you admire and appreciate about your team. Give employees a day off after they finish a big project or when they hit a critical milestone. Make employees feel valued and appreciated because it’s the right thing to do, and as a bonus, you’ll boost loyalty, satisfaction, and retention.

As we continue to face unprecedented staffing shortages, leaders have heard ad nauseam how essential it is to provide competitive salaries and attractive benefits packages. And while it is certainly important to offer these things, these are not the only things that you should provide to retain employees. Don’t underestimate the importance of building a collaborative culture, determining why people are leaving (or considering leaving), creating personalized retention plans, and expressing sincere gratitude for your employees’ efforts. These seemingly “small” details will make a tremendous difference in retaining talent at your organization.