From small organizations to jumbo businesses, almost a majority of corporations were impacted by the Great Resignation. A study reported that almost 4.3 million employees had quit their jobs in the USA alone due to the pandemic in August 2021, which left around 10.4 million jobs vacant. Another study showed that 4 out of 10 workers were planning to quit their jobs. This has resulted in a highly competitive corporate market where companies are at war to attract and retain skilled candidates.
Employee turnover is expensive, and so, companies are working on retaining their workers. According to Work Institute, replacing employees costs around one-third of their annual salary. In addition to these high costs, high employee turnover also impacts workplace engagement and many other temporary disruptions. Also, when employees leave, the additional workload on the existing workers causes burnout and impacts productivity.
Considering all these factors, employers are looking for effective employee retention factors to lower turnover and retain a loyal, skilled workforce.
Factors that Attract and Retain Employees
It’s simple! The bottom line of any employee recruitment and retention strategy is to offer what the workforce needs. A Gallup study revealed the factors that employees consider while choosing their employers or may influence them in quitting their jobs.
- Higher salary
- Work-life balance
- Occupational satisfaction
- Job security
- A diverse and inclusive workforce
- Healthy and positive workplace culture
Apart from pitching their Employee Value Proposition (EVP), employers must take some other adequate measures to keep the workforce interested in the workplace and happy with their jobs. Here are a few pointers to be considered for the same –
Reassess Compensation and Benefits Packages
With the corporate market struggling with employment and unemployment issues, compensation and employee benefits packages can be essential pieces of the retention strategy. Although studies show that there are factors more important than the pay scale, it is obvious that underpaid employees will quit their jobs soon. According to the 2021 Gallup study, almost 64% of employees said higher income was a crucial factor to choose or quit their jobs. Employers must reassess their industry compensation standards and change the employee pay packages. It can be a strategy to reward the top performers, thus motivating others to follow suit. Also, regular salary increases can make an employee feel valued.
Having the all-important conversations about the pay scale, benefits packages, and other bonuses must be carried out transparently during the interviews and on-boarding sessions. When employees understand the true value of their pay package and purpose, they are more likely to be satisfied with the pay package and not make it a reason to quit their jobs.
Review Your Employee Wellbeing Solutions
Employee wellbeing has become a crucial and integral part of most workplace policies, especially since the pandemic. Employers and employees must understand that wellbeing is beyond just physical health and wellness. With flexible working schedules and holistic wellbeing programs gaining traction, employers must make sure their employee wellness solutions are redefined to help them thrive instead of burning out. In addition to focusing on holistic wellbeing programs, employee wellness solutions must also ensure work-life balance. For example, even the workers who have not experienced burnout are realizing the importance of flexible working schedules for overall health and wellbeing.
Recognition and Rewards
When hard work is appreciated, it is bound to be enhanced exponentially. Likewise, when employees are recognized and appreciated for their efforts, they will do better at their jobs. Small tokens of appreciation in group meetings or as a part of the recognition programs can boost employee morale and confidence, reflecting better engagement and productivity. Depending on the budget, companies can implement incentive management programs to reward their workforce’s accomplishments. Be it completing the wellness challenges of the employee wellbeing programs or completing tasks within deadlines, employers can choose the right incentives like cash rewards, reimbursements, bonuses, merchandise, or others, to recognize and reward their achievements. Such regular recognition and incentive programs can boost employee loyalty and engagement, thus reducing turnover rates.
It is imminent that some workers will leave the company. By implementing the right employee retention strategies and corporate wellness programs, employers can make it difficult for employees to quit their jobs. When they feel valued, supported, and cared for at their workplace, they are more likely to stick longer with the organizations, thus reducing turnover rates and enhancing productivity.