In the “Great Resignation,” an estimated 47 million employees (and counting) voluntarily quit their jobs. The job market still hasn’t recovered from the unprecedented “quit rate” of 3.3% at the Great Resignation’s peak. Now, about 50% of the workforce are “quiet quitters” according to a Gallup poll — meaning, half of workers are disengaged at work and do only the minimum required of their job.
Having engaged talent is a competitive advantage for companies in today’s work environment. Replacing an employee who’s handed in their two-weeks notice can, after all, cost your company 21% of the employee’s annual salary. Employee retention strategies — ones that go beyond a box of donuts in the breakroom — are key to keeping workers engaged in the workplace. But given that overly played-out retention tactics can be ineffective at best and make your company look insincere at worst, it’s important to prioritize the right strategies. To that end, let’s go over some new and improved employee retention strategies that you may not have tried yet.
In this article, you'll find:
- Why employee retention strategies fail
- The best employee retention strategies
- Why your employee retention strategy IS your DEI initiative
Why employee retention strategies fail
There are plenty of employee retention strategy examples out there, but efforts can fall short. For your employee retention strategies project to be successful, you need to avoid these four common pitfalls.
1. Not delivering on promises. If you say you’re going to do something, follow up on it. Consistency is key to building employee retention strategies. Don’t ask employees to be honest about how they're feeling at work and then ignore their input. Or worse, promise big reform and fall short with token changes.
2. No trust.Studies indicate that “quiet quitting” is largely due to the relationship between employee and boss. Managers need the time, skills, and training to build solid relationships with staff. There are resource forums for people leaders to share ideas. Using tried-and-true best practices is the best strategy to build trust.
3. Siloed initiatives. Employee retention strategies can’t just live in HR. The moment they become siloed within one department or position, they fail. Employee retention strategies need to be a priority in every department and at every level.
4. No resources. Employee retention strategies need resources. To put it plainly, unfunded initiatives don’t work. Employees should be compensated for extra work such as sitting on an employee retention committee or putting together a workplace social. Likewise, pay raises and compensation should be a central part of the conversation. Remember, one of the main issues for quiet quitters is doing extra work for no extra pay.
The best employee retention strategies for 2022
With the don’ts out of the way, let’s move on to the best employee retention strategies you can start implementing today.
Listen to your employees
Well-run companies spend time and effort collecting feedback and customer satisfaction information. But what about employees? Managers need to ask, “how’s my driving?” Having data is critical to understanding how your employees are affected and making the necessary changes in order for employee retention strategies to take off. Send out an anonymous workplace survey asking about stress levels, feelings of creativity, people’s sense of inclusion, and how connected they are with their managers. If you’re not sure what to measure, start with a couple in-depth interviews. See what people want to talk about. The responses in the interviews will give you the basis for your wider survey.
Be transparent
If you ask your employees to be honest in giving feedback, management needs to be honest and transparent too. Acknowledge publicly the challenges the company faces based on what your employees have told you. This is the first step in accountability. Be transparent about compensation, pay raises, and benefits. Did you realize it is perfectly legal for employees to openly discuss compensation? This traditional taboo is becoming a common water cooler conversation. Social media is informing workers how to advocate for themselves. Meet them where they are. Actions speak louder than words.
Recognize and reward people, not just numbers
Over 1 in 5 employees does not feel valued at work. Feeling valued means knowing that your work is worthwhile and desirable. Watching the same sales people get rewarded for hitting their numbers again and again can be demoralizing for those who go comparatively unrecognized. Know your team and what they’re working on. Openly celebrate different kinds of triumphs, big and small, and be specific when you do. Helping people feel seen takes more than a generic “good job.”
Be flexible about work
Rethink how, where, and how long we do work. Research shows that 52% of workers prefer a hybrid remote-office work model. Employees even prefer it over a 10% pay raise. Employers must respond to this need as part of honing effective employee retention strategies.
And, as far as flexibility goes, time ownership is a massive benefit to offer employees — including by enabling them to work fewer days. Iceland is a leader in experimenting with the 4-day work week. Icelandic companies found it reduced burnout while improving work-life balance. Consider flexible arrangements that have proven results like these. Imagine how teams can be ambassadors for the company when they enjoy a new normal.
Facillitate growth
Employees that can’t see a clear career path within their company will look elsewhere to grow. The longer an employee stagnates in a position, the more their likelihood of leaving increases. Managers need to regularly work with each employee to envision their growth. Movement can be within their same position or laterally, as well. Give employees a discretionary budget for ongoing education and skills enhancement. Encourage projects and rotations with different departments to learn new skills.
Dust off that DEIB initiative
The best employee retention strategies are ones that are formed through a DEIB lens. DEIB strategies can be innovative for employee retention, as they (should) focus on all the things that make everyone supported, safe, and valued in the workplace. DEIB is, after all, not about making special accommodations for marginalized people; it’s about making the workplace better for everyone.
Your best employee retention strategy is a strategic DEIB initiative
DEIB initiatives make apt springboards for a number of successful employee retention strategies by listening to talent, creating custom work environments, and making employees across identities feel valued. Focus your efforts on DEIB, and employee retention will be one of many positive outcomes. PowerToFly has expert DEIB consultants that can help you jump start your DEIB-informed employee retention plan.
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