Boy, oh boy, has the landscape of finding, hiring, training, and retaining good employees changed.
And it’s the not-retaining those good employees that have become the biggest burden of all and a huge drain on resources. Low employee retention costs US businesses an estimated 1 trillion dollars annually. Not only does it a financial drag to fill the position, but while that’s happening, the work that goes undone adds up, the stress spreads to other employees, and above all, it costs the entire company something they can’t make up for – time.
Which makes retention super, duper, highly important.
So we’ve got you covered with a crash course in retention with our top tip in keeping your employees happy (super happy – if we can help it) long-term.
What is Your Retention Rate?
A retention rate is the percentage of employees that stay at your company over a given period of time. A turnover rate is the percentage of employees that leave your organization.
Employee retention rates can be a good indicator of what the employee experience is like at your company by showcasing how many employees have stayed for a specific time period, which can give some insight into what their experience is like —or not like.
Comparing retention rates over a given time period is a good way to learn where your employees are experiencing difficulty and what they would like more of in the workplace.
So it’s kinda a big deal.
This can be found by calculating [(Number of employees who stayed – Number of employees who left)/Total number of employees in the time period]*100.
(Remaining headcount during set period/ Starting headcount during the set period) x 100
Tips on Keeping a High Retention Rate
On average, hiring one new employee costs as much as that new employee’s salary and as much as double. And businesses simply can’t afford to keep starting from scratch with their fundamental players, so to help, we’ve got a few ideas for you:
1. Keep employees engaged
Highly engaged employees are more than 3x as likely to stay with their job for at least 90 days. This risk ratio then goes down to 2.6x after 180 days have passed. After one year, disengaged employees were 2x more likely to quit their job compared with highly engaged employees. That’s a heavy investment of time and money in the recruitment process for a short-term reward.
Be open about what you’re looking for and share your expectations from the get-go to avoid confusion. Meanwhile, pay attention to any possible misalignments in experience or culture during interviews and on the job.
2. Optimize Onboarding
You’ve found your ideal employee and are ready to onboard them. But before that, there are other things to think about.
The onboarding process should target several goals:
- Exceed their expectations on the first impression
- Establish clear targets for them and set expectations for their future with the company.
- Communicate what to expect during the first week
- Once you’ve onboarded a new hire, make the most of them by encouraging them to build relationships with their coworkers and colleagues.
- Let new hires know that you are looking for feedback on the workplace by taking structured opportunities to ask them.
- Start co-planning long-term goals for advancement within the business.
3. Prioritize Recognition
Employees want to feel appreciated and valued for their work. Building a culture of recognition and feedback can be helpful in making employees feel recognized—and less likely to look elsewhere for validation.
Try implementing some new standards of appreciation with employees:
- Keep listening and learning—annual and pulse surveys will allow you to hear your employees’ voices.
- One-on-one meetings are essential; they allow you to offer feedback, review performance and discuss career developments. They ensure that you’re maintaining a close relationship with your team.
- Make recognition a natural part of your culture. Recognize employees through one-on-one praise, public recognition from managers, and company-wide acknowledgments.
4. Develop Employees with a Long-Term Plan (and stick to it)
Employees want to feel like they have a future at your company and will look for that elsewhere if they don’t find it. That’s why it’s so important to invest in their formal and informal learning now, which can really make the difference when looking for new employees.
Talk to your employees about their development goals and what they expect from you as a manager. Get to know where they see themselves in five years and what skills or experience they want to gain.
Are you (like so many other businesses) seeing some gaps in your ability to find, hire and retain good employees?
Check-in with StellaPops recruitment services. Our in-house, powerhouse recruitment services come in to take the lead (and the pressure) to grow your team, strengthen your long-term success, and find the absolute best fit for your team.
It’s just what we do — and we’re not shy about it!