The nature and magnitude of employee turnover is certainly a critical management issue, and have an alarming impact affecting productivity, product as well as service quality and definitely overall profitability. For employers, the cost of replacing employees tends to be high with considerable problems in finding and training new employees, and eventually the specific workplace-related skills and knowledge people take away with shall require years to replace. Moreover, organizations face dearth of employees and shortage of talent with the acquired skills and competencies they need to achieve an edge over competitors in the market.
The problem of employee turnover can be managed by implementing a variety of proactive strategies, policies as well as practices to ensure increased retention within the company. Let's have a look on some of the best Indicators and practices for improving employee retention:-
Competitive Compensation Packages and Benefits
- Competitive and fair compensation package results in building stronger commitment on the part of employees and certainly plays the most sufficient factor in employee retention. The generous compensation affects both undesirable as well as desirable turnover of employees and guarantee to the fact that managers shall be able to keep their most valuable employees.
- At the same time, companies require being most innovative in the types of benefits offered to employees pertaining to working as well as non-working lives. They are ought to entail more focus on offering benefits like paid time-off, paid paternity leave, on-site children care, tuition reimbursement, sabbaticals and many more.
- Another key factor is the performance-based pays that has evolved as the best way that contributes to stability and increased engagement of employees. Some of the essentials include merit pays, incentive pays, bonuses, employees stock option plans, gain sharing etc.
- Employee Recognition and Rewards
- Recognizing employees' efforts and praises and rewards are certainly manipulative measures and have a greater impact to increased retention. Employees certainly feel an important part of the entire unit and feel respected whenever their efforts get recognized and they get praises from their superiors.
- Aside from this, when allocating employees with a diversified range of formal/non-formal, financial/non-financial incentives to performers, it plays a major role in good retention and minimum turnover. They truly deserve to get honoured with awards/titles, allocated with major tasks and assignments and other motivational hangouts.
Effective Hiring & Recruitment
Effective hiring and recruitment confirms to effective planning resources on project. Whom the company is hiring and whether that individual possesses required skills and competencies to get fit well within the organization is important to take into consideration since the beginning of the hiring process. At the same time, a well-structured employee orientation and designing of employee's career path is too important.
Employees Well-being and Wellness Initiatives
Maintenance of employee’s health and wellness and workplace safety contributes to increased satisfaction of employees towards organizations. This requires directing managers' focus towards supporting healthy and safety lifestyles, strong focus on diet and fitness of employees and safety and ergonomics for building a positive and motivating work environment throughout the company. And also requires addressing stress and physiological factors.
Employee Participation and Open Communication
Employees are required to be encouraged with open and responsive two-way communication within teams for good employee retention. They should be made aware of several essential factors like, performance-based pays, rewards and outcomes. This can be achieved through periodic and scheduled group meetings, conferences, discussions and also by distributing newsletters. Moreover, it is important for employees' professional development and career tracking.
Professional Training and Development
Constituting effective training courses and development modules, managers would be able to provide greater skills and competencies within employees so that they can move up to higher positions and greater responsibilities. This would also result in strengthening employees' confidence within work and company.
These aforesaid initiatives would not only result in increasing employee engagement and commitment, but would also systematize planning resources on project. On the other hand, these initiatives ensure that the expertise and the knowledge are systematically and effectively being shared among employees. Further, they can also provide learning and skills development opportunities to employees to reduce turnover.
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