9 Highly Recommended Employee Retention Strategies Deployed by Top Organisations Worldwide

In this day and age, organisations need to emphasise employee retention more. Retaining employees lowers hiring costs, develops productivity, and balances the organisation as a whole. More than 70% of new employees [1] evaluate whether the new job is suitable for them within the first month. Additionally, it is also worth noting that a majority of companies have approximately 44 days to convince new hires to stay. Further, it is also important to know that the average cost of replacing a single employee could cost the company around one to two times [2] the employee’s annual salary. 

These numbers are an eye-opener for recruiters who emphasise the need for creating a positive work culture, seamless onboarding processes, and frequent employee engagement. If you are a recruiter aiming to improve your organisation’s employee retention, you are in luck!

Below are a few strategies and recent trends with real-world examples to guide HR professionals, team leaders, and entrepreneurs on how to retain their workforce best.

Tried and Tested Strategies to Improve Employee Retention

1.Develop a Good Work Culture 

Create a culture of growth and a non-toxic work environment that allows your employees to refine and upgrade their skills. Appreciate their efforts even if that means they go beyond the purview of the set standards and processes. Most importantly, do not hesitate to offer constructive feedback without affecting their morale and letting them know even the best of the best make mistakes. More focus needs to be placed on encouraging employees to engage in discussion, work cooperatively, and celebrate achievements.

For example, Zappos has become synonymous with having the best culture, and as such, has treated employees properly ensuring they are happy and engaged and in return, it has boosted the retention rate and the loyalty of their employees. Additionally, by prioritising employee happiness and engagement, the company has laid solid foundations for employee retention. 

2.Offer Good Pay, Benefits, and Flexible Working Arrangements

Although salary and healthy compensation may not be the only factor to encourage employees to work harder, a recent study by Glassdoor revealed that motivation levels of roughly 45% of employees [3] increased when they were offered a higher salary. Observe and track the market consistently to ensure salaries and benefits match what others in the industry offer. It is a good idea to provide perks that go beyond money such as flexible work hours, wellness options, and days off.  

For instance, Adobe has benefits like sabbaticals, good parental leave, and help with tuition costs. These measures illustrate Adobe’s commitment to aiding the personal and professional growth of their employees, fostering loyalty and retention.  While monetary benefits are crucial, companies must go beyond that to improve and create a positive and engaging work culture. The post-pandemic era has introduced several trends such as hybrid and remote working, compressed weeks, flexible working hours, and unlimited paid time off which have all played a key role in encouraging work-life balance and boosting employee satisfaction. 

Further, wellness programs focusing on mental and physical health can play an imperative role in improving morale and productivity levels. Seamless access to mental health experts, regular workshops on mental health and mindfulness, and stress management programs can go a long way in exhibiting your company’s commitment to the overall well-being of your employees. Companies can also mitigate the risk of burnout by leveraging the benefits of work management tools that are equipped to handle task allocation, workload distribution, and tracking deadlines. 

3.Provide Chances for Growth and Learning  

Did you know that companies that invest in the professional development of their employees have a 34% higher chance [4] of retaining their employees?Organisations must invest in training, and mentorship, and create a roadmap for career growth for their employees. It is imperative to let employees take on new tasks, and take ownership of new processes and roles to learn new skills and sharpen their existing skills. You can partner with local or international training providers that offer guidance and career development programs to employees, enlightening them with new opportunities and ways to progress in their careers.  For example, LinkedIn gives workers access to online learning resources for ongoing development. These steps not only help employees upskill but also tune their growth with the company’s vision and objectives – a win-win situation for both parties. 

Mentorship and tailored guidance are powerful tools companies can use to enhance employee development. For example, it is a good idea to assign senior employees as mentors so that junior employees can narrow the skill gaps and provide consistent insights into the company’s processes and ongoing market developments. Google’s gCareer mentorship program aids employees in transitioning into new roles within the company, fostering growth and retention. 

4.Recognise and Reward Performance  

Did you know that a staggering 83.6% of employees [5] feel that their motivation to succeed at work depends on whether their efforts are recognised or not? The onus is on the companies to ensure their employees are motivated to progress in their respective careers and take ownership of their work by offering adequate skill development opportunities. For instance, Salesforce incorporates its “Ohana Culture” to honour employee successes through regular recognition events. This approach has helped the company improve employee morale and reinforce a sense of belonging among its workforce. Companies must consider introducing such programs to acknowledge important milestones, achievements, and great work done by employees. 

They can take a mix of both – formal and informal paths like awards and bonuses, shout-outs in meetings or organise “Fun Friday” on the last Friday of the month to appreciate and reward the top-performing employees in that particular month.  

5.Focus on Work-Life Balance  

Encourage staff to take breaks, use vacation time, and separate work and personal life. Provide options for remote work or flexible hours to meet different needs. Additionally, be considerate when employees request long-planned leaves without making them feel they’re doing something wrong by doing so. Focus on the quality of work rather than the quantity of tasks completed to strike a desirable work-life balance. 

For example, Buffer, one of the top social media management platforms supports a work-life balance with a four-day workweek option. This move has proved to be a game-changer in enhancing employee satisfaction and work-life balance within the company and thereby improving employee retention. 

6.Conduct Stay Interviews  

Make your employees want by engaging with them and understanding their challenges, goals, and overall happiness by conducting stay interviews at regular intervals. Stay interviews are different from exit interviews and primarily focus on the existing employees instead of those who are leaving the company.  Stay interviews predominantly aim to identify the potential challenges of existing employees and factors that motivate them to do better. You can ask them what motivates them to stay in the company or if anything is bothering them that can be solved internally. Let them know that management cares about every employee and encourages healthy discussions to solve problems. This allows you to identify disengaged or demotivated employees and help them reconnect with their responsibilities, improve output, and feel valued. 

7.Define Career Paths Clearly

Describe how the current role in the organisation can aid your prospects’ career growth. To maintain employee motivation, discuss these avenues through regular performance evaluations and during the onboarding process. It is also worth noting that performance reviews should not solely focus on evaluating the historic work done by an employee, but also spot skill gaps and define a clear roadmap for actionable steps for growth in the future. This approach provides a sense of direction and also motivates employees to think out of the box and strive for excellence. 

You can show a few case studies that highlight how your organisation has helped current and ex-employees reach new heights in their careers. Talk to them about the possibilities within your organisation in case they wish to switch roles and how they can do the same effortlessly. 

8.Make Diversity, Equity, and Inclusion (DEI) a Priority

Create initiatives to guarantee that every employee, regardless of background, feels appreciated and included. To assist underrepresented groups, establish employee resource groups (ERGs) and offer DEI training. In today’s day and age, employees value organisations that go beyond the traditional boundaries to ensure everyone is welcomed and valued to work for them. DEI audits help you identify potential gaps and implement the different policies to promote inclusivity and a positive culture. 

You can also consider encouraging your employees to stay by explaining the possibilities for internal role changes and how a role switch will benefit them. The key is to be transparent communicating all the processes clearly and define a clear roadmap of all the key steps involved. It is equally essential to highlight the potential opportunities and how they align with the employee’s career goals. 

9.Consistently Assess and Modify Retention Techniques

Track trends in retention, employee satisfaction, and turnover rates using data and analytics techniques including pulse surveys, employee surveys, and stay and exit interview data. You can also consider investing in different tools such as Culture Amp, Peakon, and Qualtrics to collect and analyse these insights optimally. Adjust your internal tactics in response to the inputs you receive and analyse the precious data at your disposal including the employee Net Promoter Score (eNPS), retention rate, turnover rate, and engagement levels. 

 Evaluate and adapt retention strategies regularly and modify them as your organisation grows based on the data you have gathered. 

Role of AI and Technology in Understanding Employee Satisfaction

AI’s role in understanding employee satisfaction is indispensable in today’s digital era. As technology continues to evolve and new tools enter the market, companies must adapt and invest in them to stay ahead of the curve and think beyond the ordinary. 

Here’s how AI can empower organisations to understand employee satisfaction. 

• AI-Powered Sentiment Analysis: Tools such as Peakon or Qualtrics analyse employee feedback, surveys, and interaction data to evaluate employee sentiments and satisfaction rates. Almost all of the aforementioned tools rely on Natural Language Processing (NLP) to track positive and negative trends, offering useful information to recruiting teams. 
• Predictive Analytics: Machine learning algorithms can pinpoint patterns in employee behaviour, thereby assisting in estimating the risk of staff turnover the organization may be facing. Platforms such as Workday and Visier come with intuitive analytics dashboards that highlight potential issues, including dissatisfaction or burnout. This allows companies to minimise the turnover rate and retain their employees effectively. 
• Personalised Employee Experience: AI platforms are designed to promote personalisation to each employee by giving tailored recommendations regarding training, career development, and other health initiatives. For instance, EdApp provides tailored growth and learning paths for each employee to help them make informed decisions regarding their career progression. 

Conclusion

Employee retention goes beyond offering competitive pay; it’s about creating a workplace where employees feel valued, supported, and aligned with the organization’s mission. By leveraging AI, embracing hybrid work models, and fostering a culture of growth and recognition, organisations can stay ahead in the talent race and ensure a low turnover rate. 

Real-world examples from industry leaders like IBM, HubSpot, and Adobe demonstrate that thoughtful and innovative strategies can significantly impact retention. Investing in these best practices today will ensure a stable, satisfied, and high-performing workforce for the future.

Companies must re-evaluate their retention strategies, develop clear roadmaps, and foster a culture of inclusivity by embracing the retention strategies and insights mentioned in the article.

References:

[1] https://www.bamboohr.com/resources/guides/onboarding-statistics-2023

[2] https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses

[3] https://www.linkedin.com/pulse/high-salary-key-productivity-recent-research-saurabh-srivastava/

[4] https://blog.clearcompany.com/27-surprising-employee-development-statistics-you-dont-know

[5] https://nectarhr.com/blog/employee-recognition-statistics