While the competition for top talent is becoming increasingly intense, it’s important for companies of any size and industry to develop solid recruitment and employee retention strategies. Fortune 500 companies are no exception.
Employee retention is a challenge for many companies. Finding replacement hires for outgoing employees is an expensive and time-consuming process. According to Employee Benefit News, employers spend around 33% of a worker’s annual salary during the replacement process.
Small and medium business owners consider Fortune 500 success stories to be a source of inspiration and consider their internal business processes a benchmark of quality. Let’s look at what some Fortune 500 companies are doing when it comes to employee retention.
Dell has discovered through surveys and analysis that out of seven leadership principles, vision, selflessness and work /life balance are principles that currently matter most to its employees. By knowing what truly matters to its people, Dell shapes its culture and leadership in ways that engage people and give them reasons to stay. They have a number of programs designed to speak to what matters most to its employees.
- Achievements Rewarded
- Competitive Compensation
- Flexible Work Options
- Career Development
- Employee Purchase Program – savings on Dell products
- Employee Assistance Program
- Employee Referral Program
Bayer’s business success is based, to a large extent, on the knowledge and commitment of their employees. They offer employees attractive conditions and wide-ranging individual development opportunities. Their corporate culture is based on trust, intentional inclusion, respect for diversity and equality of opportunity. They measure the engagement and satisfaction of their employees via institutionalized feedback discussions and regular employee surveys. In summary, Bayer employees receive:
- Fair and Transparent Compensation System
- Retirement Benefits Plan
- Combining Work with Family Commitments
- Flexible Working Hours
- Healthy Working Environment
- Training and Professional Development Opportunities
Microsoft is a renowned tech giant in the world. The company has revolutionized the software industry and employs a large number of software professionals. Microsoft believes in addition to great benefits, working with talented and driven colleagues plays a vital role in encouraging people to stay longer in a company.
Kathleen Hogan, Chief People Officer, says, “While pay and benefits are table stakes to keep great talent, we believe working alongside amazing peers to realize your own personal mission is the most powerful retention strategy.” In addition to this, here is a summary of what keeps employees at Microsoft.
- Flexible Work Schedule
- Continuing Education
- Connecting With Peers – organized networking, resource groups
- Complete Health Benefits and Programs
- Plan for the Future – savings assistance
- New Parent & Family Caregiver Leave
- Great Discounts
- Join in Giving – Assistance with volunteering and matching programs
SAP started in 1972 as a team of five colleagues with a desire to do something new. Together, they changed enterprise software and reinvented how business was done. Today, the same entrepreneurial spirit continues to drive their culture of creativity, diversity, and collaboration.
SAP recognizes that success means different things to different people. They encourage employees to “Just be the best you are”. One key element of SAP’s retention strategy is to invest in employee learning and development. In 2017 SAP invested 187 million euros in its L&D programs. Part of this is mandatory training for leaders across all levels. Here are a few other reasons SAP employees stay put.
- Own a part of SAP – Employees become shareholders
- Recognition – Hasso Plattner Founders Award is awarded annually by the CEO
- Diversity and Inclusion – Success for everyone ~ across generations, cultures, and identities
- Corporate Social Responsibility – Support of sabbaticals, volunteering, etc.
- Health Living Focus – Promotion of work/life balance, health related programs
- Employee Assistance Program
The payoff for organizations that focus on employee retention is well worth the time and investment. Increased performance, better productivity, higher employee morale and improved quality of work, not to mention a reduction in turnover, are all organizational benefits.
Okay, so how do I apply this to my business?
As Simon Sinek would say, start with why. In other words, develop an Employee Elevator Pitch. We go into detail about why it’s important and how to get started.
The next step is to look for solutions that add huge value for your employees but don’t break the bank for your business. One example is allowing your employees to have a flexible work schedule. Defining what exactly a flexible work schedule means and how you roll it out are critical in avoiding miscommunication and ensuring that employees appreciate your thoughts and actions. For more suggestions, reach out to the HR pros at HRO Resources.What is your employee retention strategy?
From employee recruitment to payroll, insurance and benefits, HRO can handle it. Get started.