Ways in which businesses can improve their employee retention rates
Our careers are a big part of our lives, with the average person working 36 hours per week in 2022. It is hardly surprising therefore that those who do not feel content in their job typically decide to leave and look for opportunities elsewhere. In the UK, the average turnover rate is around 14% – which isn’t always necessarily a bad thing – but to maintain a good reputation and high standards, it is vital for companies to learn how to retain their employees.
Companies that have a high turnover of staff tend to see a reduction in overall performance, attributed to an increase in inexperienced workers, more time and resources taken to train these individuals, and the need to rebuild interpersonal relationships created over time.
Clear development and progression
One of the best ways to motivate a team is to set individual goals for the future, working with them to develop their own training plan and mapping out how they can progress within the company. For any opportunities that become available within the business, it is recommended that you prioritise internal promotions where feasible. Communication is essential so that employees know where they stand, and regular conversations about performance will assure the team that they are progressing as expected.
Recognition and employee benefits
Appreciating your employees and rewarding their hard work can be a highly effective method for retaining employees, making them less likely to look for validation in another business. Examples of this can include increasing the salaries of experienced staff members, offering bonuses based on performance, and providing the option of excellent healthcare benefits and pension plans. If your business is not able to adjust to these requirements, it may be worth looking into getting a secured business loan.
Good work-life balance
Companies that expect their employees to work overtime and long hours can induce high levels of stress and burnout. This can ultimately lead to workers taking time off sick or leaving to find work someplace else. One way that businesses can improve the work-life balance of their employees is to set time frames for work, where workers can finish on time even if work is not finished, to be completed for the subsequent day.
Businesses are also advised to encourage employees to take time off work when they feel necessary, advertised in the form of personal days. More recently, a large number of companies have offered hybrid-working policies that enable their employees to balance working from the office and working from home. This allows people to create a working system that best suits their lifestyle and helps to prevent exhaustion from long travel days, beneficial for improving both mental and physical health. Granting flexibility also lets employees know that they are trusted to complete their own work, and this can boost productivity in the long run.
Evidently, there are many barriers that can prevent employees from reaching their full potential and feeling adequate in their careers. However, by understanding and following these suggestions, you can improve employee satisfaction, retention rates, and ultimately your business’s performance.
