Almost 4 million people quit jobs in July – and nearly the same number quit each previous month this year, according to the U.S. Bureau of Labor Statistics. About 40% of employees say they’re at least somewhat likely to leave their job in the next six months, a McKinsey study found.
Those are the big numbers. You probably don’t need to read them to know there’s a labor crunch. You may be experiencing it in your own business. It is also evident by the number “Help Wanted” signs popping up in almost every industry.
But, as in many business situations, your best defense is likely offense. Fend off resignations with more and better retention strategies to retain employees.
The Domino Effect of the Employee Resignation
55% of U.S. workers say they’ve had direct colleagues leave their organization within the past six months. And since their colleagues left:
- 55% have wondered if their pay is enough
- 53% have wondered if there are better job opportunities out there
- 52% have had to take on more work and responsibilities
- 42% have thought about leaving their job more often than they did when their direct colleagues worked for the organization
Employee retention is an organization’s greatest recruitment tool. Happy and engaged employees are more likely to share their positive experience with others. Get started with your employee retention strategy with these retention strategies and tactics that will help to improve the employee experience.
Improve Employee Development
Employees who feel they are valued and have opportunities to learn, become better and advance, won’t likely walk out the door for a one-time signing bonus. They’re more likely to stay where they can grow. Make it a priority to invest in your workers’ professional development. Give them time to attend virtual conferences, provide tuition reimbursement or pay for continuing education. If employees are not given opportunities to continually update their skills, they are more inclined to leave.
Gauge Your Understanding
One of the biggest problems with retention is employers don’t know why they fail at it. In contrast, employees say they mostly quit because they didn’t feel valued by the company and their managers, or they didn’t feel a sense of belonging at work. Consider implementing an Employee Engagement Survey. Done right, employee surveys are a great way to show your employees you care.
Focus on Work-Life Balance and Mental Well-Being
A healthy work-life balance is essential to job satisfaction and goes hand-in-hand with mental well-being. People need to know their managers understand they have lives outside of work — and recognize that maintaining balance can be even more challenging when working from home.
Flexible Work Arrangements
While many companies and employees have become accustomed to working remotely, think about what you can offer staff if remote work on a permanent basis isn’t an option. A compressed workweek? Flextime? Or maybe a partial telecommuting option? All of the above can help relieve stress for your staff — and boost employee retention.
Encourage Time Off
You can temper turnover by making sure employees take time off of work. Regardless of where employees work, they aren’t using their sick or well-being (vacation) time. Employees who don’t take time off when they physically or mentally need it experience more stress. That leads to turnover. Regularly remind employees about your time-off policies.
Review Compensation and Rewards
It’s essential for companies to pay their employees competitive compensation, which means they need to evaluate and adjust salaries regularly. Even if your business isn’t able to increase pay right now, consider whether you could provide other forms of compensation, like bonuses and paid time off. Don’t forget about health benefits and retirement plans, too. Every person wants to feel appreciated for the work they do. Improving those valued offerings can help raise employees’ job satisfaction.
These retention strategies are just some ways to increase job satisfaction. In short, a good employee retention strategy plan involves strategic actions to keep employees motivated and focused so they choose to remain employed and productive for the company.
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