Want to Keep Your Employees?
How To Use Events, Programs and Initiatives for Employee Retention
In the last decade, we’ve seen unemployment rates drop to 3.7 percent which is the lowest in 50 years in both the US and UK. Recently, records have been set for the longest-ever economic expansion which caused the number of unfilled jobs to hover near an all-time high with more than 7 million vacant roles in the U.S. Candidates were in the driver’s seat in 2019, fueling a war for top talent in tech, healthcare and professional services. *Glassdoors Job and Hiring Trends 2020
People change and hop to new jobs consistently, multiple generations who have different needs are in the talent pool and every day new technologies come into play that change how works gets done. Whether you’re a C-level executive, HR department professional or middle manager, being committed to creating a better employee experience to retain top talent should be a top priority for businesses.
A study conducted by Employee Benefits News, gives us a better understanding of the ramifications of not retaining employees. The study, states that the average cost of losing an employee is a staggering 33% of their annual salary. Not only is talent and time lost, but so has valuable funding for a company. When recruitment fees, training, and lost productivity are added to the mix, a high turnover rate can have crippling financial implications for a business.
In 2020, there will be a changing tide of CEO opinion to usher in a new wave of “culture-first” thinking among business leaders, elevating employee engagement to the status of core business focus for a growing number of companies. According to a Glassdoor survey, “workers increasingly prioritize company culture over cash.” This formal recognition of employee culture in business today is one that executives can’t afford to ignore.
Employee culture has been demonstrably linked to better financial performance, innovation, talent attraction, ethical workplace behavior and customer satisfaction. Employees want to be recognized for the work they do. While it’s often desirable to demonstrate recognition through a raise in salary or a holiday bonus, many employees also respond favorably to gestures that extend beyond financial rewards.
So how do you create a better employee experience? How do you attract and retain employees in a job market where top talent is poached?
This is where events, programs and initiatives come into play for retention. Monthly or annual high-performance awards can be used to recognize an employee for their contributions at a staff meeting or other departmental gathering. There’s nothing wrong with being generous with perks, lavish benefits, or celebratory events. They are great when they are an honest, congruent reflection of how management sees and treats employees on a daily basis.
Build and strengthen employee links with team activities. Start community service outings, recreational leagues and fitness challenges. According to the ADP Midsized Business Owners Study, three of five business owners and senior executives surveyed believe focusing on employee recognition for achievements is important to their organization’s success. Group activities around fitness and community service encourage employees to interact with people outside their department, building camaraderie and fostering team cohesiveness.
Make training and development a priority to invest in your workers’ professional growth and seek opportunities for them to advance. Some companies pay fees and travel for employees to attend conferences or industry events each year, provide tuition reimbursement, or pay for continuing education training.
For sales teams, get them together at least annually to not only allow for comradery and relationships to be built amongst the team members and receive training on new sales tools, but also provide awards for top sales performance, appreciation and teamwork.
Managing for employee retention involves strategic actions to keep employees motivated and focused so they elect to remain loyal and fully productive for the benefit of the organization. A comprehensive employee retention program can play a vital role in both attracting and retaining key employees, as well as in reducing turnover and its related costs. All of these contribute to an organization’s productivity and overall business performance.