employee retention solution
Dec 22'

Employee Retention Solution for Boosting Employee Morale    

Over the past few years, the labor market has become increasingly complex. Despite significant economic changes since the pandemic started, the Great Resignation continues with no sign of slowing down. 

A recent McKinsey survey found around 40% of employees are thinking about leaving their jobs in the next three to six months, a figure unchanged from 2021. According to the US Bureau of Labor Statistics, the rate of employees voluntarily quitting their jobs is 25% higher than pre-pandemic levels.   

Luckily, Gallup found that 52% of voluntarily exiting employees report that their manager or company could have done something to prevent them from leaving their job. This guide covers everything you need to know to develop a comprehensive employee retention strategy to boost morale in your organization.  

Importance of Employee Retention Solutions  

As the battle for talent remains fierce, employers must adapt and change their employee retention strategies. A comprehensive employee retention program can be vital in attracting and retaining key employees, improving your organization's productivity and overall business performance, and reducing turnover and related costs.

Let's look at the benefits of employee retention solutions.

Reduce Costs of New Hires and Training   

One of the biggest concerns of employee turnover presents the financial cost of recruiting and training new employees to replace the ones you've lost. Gallup also estimates that replacing an employee is up to two times the employee's annual salary, and US organizations spend up to $1 trillion in turnover expenses annually. 

By focusing on employee retention, you can dramatically reduce your recruitment costs. It's more efficient to retain a quality employee than to recruit, train, and orient a replacement employee of the same quality.    

Improve Efficiency   

A crippling cost of high turnover is the loss of institutional knowledge, skills, and relationships within the organization and with customers and partners when an employee exits. Losing your best people means losing reliable winners, constant innovators, and the most effective problem-solvers. A high-retention workplace has a seasoned team of employees who stay for years or entire careers, buy into the culture, and care about the company's future success. The more seasoned your team members are, the more efficient and productive your company will be.   

Good Working Relationships   

It's a no-brainer that working with people you like is more enjoyable than the alternative. The longer employees work together, the more likely they are to develop good relationships built on trust and understanding of each other's strengths. When employees know they can count on one another, they're likely to communicate and collaborate more effectively and be happier, more engaged, and highly productive, driving the company forward.    

How to Effectively Implement Employee Retention Solutions   

To effectively implement employee retention solutions, you need to understand what employees are looking for, as employee expectations have dramatically changed over the past few years. Employees want to be part of a team where they feel valued, can contribute fully, be compensated fairly, and are allowed to learn and grow.  

Here are a few employee retention solutions you can implement.   

Start Before Hiring  

Retention starts right from the beginning, from the application process to screening applicants to choosing who to interview. Your recruitment process is the first opportunity you have to engage potential new employees and make a good first impression. If your recruitment process is disorganized, dysfunctional, inefficient, or otherwise off-putting, it will be difficult to convince candidates that your company is any different.   

Ensuring your recruitment process is as smooth and engaging as possible sets the tone for a positive employee experience. During the interview and hiring process, you need to be transparent and paint an accurate picture of exactly what your company stands for, your company culture, and the goals for your employee. You need to be sure the candidate is a perfect fit for the job and your company's culture.  

Establish a Seamless Onboarding Process  

Bad onboarding is one of the biggest reasons new hires don't work out. When done well, onboarding lays the groundwork for employees to settle into their roles and thrive. 

Research has found that organizations with a strong onboarding process improve new hire retention rate by 82%. In contrast, companies with weak onboarding programs lose the confidence of their candidates and are more likely to lose these individuals in the first year.  

The best employee onboarding programs are both structured and strategic rather than administrative. Set clear and realistic expectations from day one – lay out what will be expected from them, their role in the company, and the tools you will provide them with so they can effectively do their job. Over the next few months, check in regularly to ensure they have the guidance and coaching they need.  

One of the best ways to set your employees up for a successful onboarding and smooth transition is by using onboarding technology. It's an efficient solution for reducing redundant manual tasks, improving the new hire experience, process management, analytics, training, and supporting a dispersed workforce.  

Encourage Open Communication   

Creating an environment of open dialogue in the workplace is essential for attracting and retaining top-tier talent. Your organization should also create efficient communication channels where employees can easily express themselves. 

Open internal communication helps your organization gain valuable insights regarding the employees' feelings towards the whole organization and their job satisfaction levels while making them feel valued, satisfied, and motivated. This, in turn, will build a healthy company culture, improve employee relations, enhance morale, increase productivity, and improve employee retention rates.   

Provide Professional Development Opportunities  

Learning and development play an important role in creating a work culture that encourages employees to grow and stay with your organization. These programs help employees develop the skills that can help them make moves within an organization, either vertically or laterally. If employees are confident in their actions and can see a clear career path, they will likely stay with the company.   

According to LinkedIn's Workplace Learning Report, employees at companies with high internal mobility (that hire/promote from within) stay almost 2x longer than those who don't. By incorporating internal mobility into your employee retention strategy, you can broaden your pool of candidates, uncover hidden talent, and support your employees' career growth. It also helps employees feel valued as a crucial part of the company's success.   

According to LinkedIn's Workplace Learning Report, employees at companies with high internal mobility (that hire/promote from within) stay almost 2x longer than those who don't. By incorporating internal mobility into your employee retention strategy, you can broaden your pool of candidates, uncover hidden talent, and support your employees' career growth. It also helps employees feel valued as a crucial part of the company's success.   

Promote Work-Life Balance  

Workers want a sense of wellness in all parts of their lives, and a company that shows it cares will earn their loyalty. A recent survey found that flexibility and work-life balance trump financial compensation, with 63% of job seekers indicating that work-life balance was their top priority when picking a new job. 

A healthy work-life balance can reduce stress, prevent burnout, increase job satisfaction, boost morale, and improve productivity. You can offer flexible working arrangements like flex time, remote work, or a compressed workweek, provide paid leave, offer childcare services, limit PTO carryover, respect their time off, and sponsor family activities.   

Role of Employee Rewards and Recognition in Employee Retention  

Cultivating and retaining talent can be a challenge within any organization, but taking time to ensure your employees feel recognized and appreciated for their work can go a long way toward creating a workplace in which employees remain engaged, productive, and loyal. According to Gallup's report on Transforming Workplaces Through Recognition, employees who receive recognition just a few times a year (or less) from a manager, supervisor, or other leaders are 74% more likely to say they do not plan to be at their organization for another year.   

When done right, successful employee incentives can be the most effective tool in your retention strategy. Although a simple thank you is the first step, your organization should include other significant forms of appreciation such as raises, bonuses, paid time off work, or even promotions. 

An employee recognition program needs to be structured, specific, timely, and consistent, and one way to do that is by using programs and software like Bucketlist. This tool can help you develop and implement a standardized structure of recognition that's more efficient, automated, personalized, data-driven, and frequent.  

Why Exit Interviews Are Critical to Employee Retention  

The goal for every company is to retain valued employees, but since attrition is inevitable, the next best thing is to understand why they stay, why they leave, and how the organization needs to change. All this can be accomplished with a thoughtful exit interview process. By taking the time to fully understand the signs an employee is leaving, HR professionals can gain valuable insight into employee experiences within the company.   

An exit interview, whether a face-to-face conversation, questionnaire, or survey, can reveal what does or doesn't work, highlight hidden challenges and opportunities, and provide a general sense of staff morale and positivity levels. It can promote engagement and enhance retention by signaling to employees that their views matter while turning departing employees into corporate ambassadors for years to come.    

Integrating Employee Retention Solutions in Onboarding  

As you replace the departed employees, you need to create an exceptional onboarding experience for your new hires. Using employee retention solutions from the beginning of an employee's experience can help alleviate the reasons for churn. 

Effective onboarding reinforces a positive impression, sets clear expectations, clarifies policies and benefits, and integrates new hires into the company culture. It also connects new hires with existing team members and enables planning for their long-term future.   

Say Hello to Your Employee Retention Solution   

In today's competitive job market, companies that improve employee retention and address turnover risks reap significant rewards, including improved productivity and work quality, higher employee morale, engagement and job satisfaction, and reduced recruitment and training costs. However, to retain staff and boost morale, you need to implement several employee retention strategies, such as ensuring a seamless onboarding experience, promoting work-life balance, encouraging open communication, having a robust recognition and rewards program, and integrating an employee retention tool into your onboarding process.   

Are you ready to increase employee retention? Contact us for a demo request and learn more about how Bucketlist can help your organization increase employee retention and morale.  

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