What is employee retention?
Employee retention definition
Employee retention involves keeping employees who already work for your company. While hiring new, quality employees as needed is important, it’s also very valuable to keep the employees you already have. By doing that, you help ensure that your company has well-trained people who know their jobs. It’s also expensive to bring new employees on board, so you’ll want to retain the ones you have as long as they’re good employees who are performing their jobs correctly.
You don’t have to settle for a high level of turnover, when you discover the reasons behind employees leaving and address those reasons. Then you can see a lower turnover rate, and you’ll be able to keep employees who are providing you with good quality and value. The onboarding of new employees is costly, and it’s far less expensive to work toward higher levels of retention. But that can only be done with the right employee retention strategies, so people want to stay on and work for your company. Understanding how to raise your employee retention rate is a big part of keeping your company strong.
Not every company can expect the same employee retention rate, of course. Some types of companies and industries simply have a higher rate of turnover than others. But you can reduce the rate at your company as much as possible, by working with employees to find out why they’re leaving. You may want to make changes that encourage more employees to stay, or look for something different in the employees you hire in the future.
Benefits of employee retention
Among the biggest benefits of employee retention is the cost savings. For companies with low rates of employee turnover, the value of employee retention can really be seen. These companies seem to have happier, healthier workers, and they seem to get more done, as well. Companies can be more accomplished when they don’t have to keep retraining new people. The company culture is also different when there’s a good employee retention program, too. People feel valued, and when they feel like they matter they want to work harder. That boosts morale, which adds to the overall quality of the work experience for any employee and the company as a whole.
Employee retention ideas are important, but they can be hard for some companies to come up with. Depending on the company, they might not be sure how to keep more employees from leaving. But there are ways to find out why employees are choosing to move on. Once that’s handled and more employees are staying with the company, the employee retention techniques that are being practiced can be expanded so they help even more employees feel good about their working environment.
It’s very important to understand how to calculate employee retention rate, so you can see whether any changes you make are working. If the changes your company is making aren’t doing anything to improve retention of employees, you’re not seeing the benefits of those changes. You’ll want to consider doing something different, to have more success.
Improving employee retention
The right employee retention plan is the one that works for your company and its employees. That could look different from what’s being done by other companies, especially those that are in different industries. Asking what is employee retention is the first step, because your company needs to understand the issue before it can work to change that issue and make it better. But the employee retention meaning isn’t the only thing that matters. Even once something is well understood, there are still issues that surround it and that need adjusted. To really understand how to improve employee retention, companies need to be willing to change and grow.
By reading employee retention articles and other information, and by carefully considering the employee retention statistics for your company, you can see how retaining your employees adds value to your company. From that point it’s easier to improve employee retention, because you can work with your employees to see what they need. What makes them want to stay? What factors are the biggest ones that are causing them to leave? Addressing those kinds of things openly and honestly is among the most successful employee retention strategies to improve things for companies and workers.
When you improve retention of employees, you also improve your company’s morale and bottom line. Both of those are important, but the value of a good working environment and strong collaboration between employees who have worked together for some time is probably the most important aspect in all of this.
Employee retention survey
One of the ways to address better employee engagement and retention is through asking your employees to take a survey. That can help your company have more insight into your employees overall, as well as what they need in order to want to stay with your company. Most companies think it’s about raising pay, but there are a lot of other factors that matter to employees, as well. Before you embark on an employee retention survey, ask yourself: why is employee retention important? By answering that question in a way that’s specific to your company, you can get a better idea of the kinds of questions you want to ask on the survey.
Employee retention facts are important, but they only really matter if they’re specific to your industry or company. When you have your employees complete surveys, you can collect information that’s related to your company instead of just the industry you’re in. That level of detail makes a difference, and you’ll be more likely to have success in retaining employees if you survey them in a way that encourages them to be honest about the kind of company they work for and what they’re looking for in the future.
Sometimes employees leave for reasons beyond your control, but the goal of the employee retention survey is to make sure you mitigate the factors you’re able to control. That way you’ll have done all you can to keep your employees, and your rate of turnover will drop as your rate of retention rises.
Employee retention software
For companies that are fully dedicated to employee retention, there’s software that can help. Whether you want to have your employees take a survey about whether they want to stay or leave, or you’re looking for things you can do to make it easier for employees to do their jobs (so they’ll be more likely to stay), software options are available. But make sure you get software from a trusted company, so you get the information you actually need for your company to make changes and adjustments.
Not using the right software for employee retention means not getting the information you really need. That slows down the opportunities to make things better for your employees, and can mean you continue to lose employees to turnover that you could potentially have avoided. You don’t need to settle for that, especially if you’re losing ground to your competitors because they’re retaining employees — and potentially hiring the employees that are leaving your company. Your rates of employee retention should be the same or higher than your competitors. If they aren’t, it’s time to make some changes.
Software options for employee retention can make it easier to focus on the kinds of things that really matter, and that are most important for your employees. By meeting their needs, and being clear on what those needs are, your retention rates can rise and help make your company more successful in the long run. Especially in industries where it can be difficult to find employees, your company needs to retain the good ones you have.
Employee retention strategies
One of the biggest things to pay attention to when it comes to keeping good employees are the employee retention strategies your company has. If you’re only assuming employees will want to stay, you may be setting yourself up for some serious problems down the road. You need strategies for keeping those employees, instead. Better pay is often a strategy that companies use, but it’s not the only one you should consider. Instead, think about the other kinds of things your employees want. Ask them what they need. Then focus your retention strategies around those areas.
When you’re open to adjusting your strategies to better suit your employees, you have a higher chance of keeping quality people on your payroll. If you don’t work to retain employees, you might find those same people wandering off to your competitors, or even leaving for other industries. Instead of allowing that to happen, show your employees that you appreciate them and you want them to stay. Simple things like company awards and recognition can go a very long way toward getting employees to stay on and keep doing a good job.
When you specifically work with your employees to find out what kinds of incentives matter to them, they’ll feel more valued. But then you need to put those incentives into practice, to show your employees that you’ve heard what they said. That’s the biggest part of the equation, because your employees won’t feel your appreciation if you don’t offer them some of the retention incentives they said were important.