Hiring top candidates is an important part of an organisations' success, but from small businesses to major corporations, the so-called Great Resignation is hitting companies hard. That's why your employee retention strategy should be as prioritised as your hiring strategy more than ever. Here are our top six suggested employee retention strategies for 2022.
The pandemic fundamentally changed many things in young Europeans’ lives, especially their career plans and paths. Unemployment rates rose from 6.3% across the E.U. in March 2020 to 7.7% at the height of the pandemic. Now, nearly two years into COVID, a new shift is happening. Young consumers are quitting their jobs in record numbers, fueling the headline-grabbing Great Resignation, which is not just happening in the U.S. but all over the world.
The result? A highly competitive jobs market in which many companies are struggling to retain employees and attract new talent. This clearly shows that HR departments must take a step back, reconsider their strategies, and focus more on what matters the most for a company’s success: its people.
You don't always need to pay more, you may just need to pay attention.
1. Your Employees Career Path Matters
94% of employees surveyed by LinkedIn for its annual Workplace Learning Report said they would stay at a company longer if it invested in their professional development. Businesses that don't provide these internal training opportunities miss out on an exciting opportunity to address the global skills shortage. Organisations should tap into their employees’ desire for development by providing structures like mentorship programs and investing in additional education for their employees.
2. Employee Recognition: Low Cost, High Impact
A sobering 66% of employees say they would quit their job if they felt unappreciated. According to one Gallup poll, 65% of people feel unappreciated at their job. Meanwhile, another study discovered that the office comes in last on the list of places where people express gratitude. Side by side, those statistics indicate there's a lot of work to do. To succeed, your employee appreciation initiatives need to be consistent, sincere, and organic.
3. Grow your career within
Good employees want to advance in their careers. They are motivated by the prospect of promotions, and the chance to take on more challenging work. Employees who remain in the same role for an extended period are more likely to leave an organisation. In fact, for every 10 months an employee stays in a position, their chances of quitting increase by 1%. So make sure you design a career path regardless if you want to become a people's manager or an industry expert.
4. Monitor your turnover risk
Employee retention isn't something that you build and then stop working on. You have to be in constant communication with your employees to make sure their expectations are met and they're currently happy at your organisation. This is especially true during times of change.
5. Improve your onboarding process
Imagine going through the highly expensive process of recruiting a new employee only to lose them within the first two months. If so, this could potentially point to a poor onboarding process. Therefore it is essential to build a solid strategy for your onboarding. Make sure you stay close to your new employees and create a program that's about integrating new hires into the company culture.
6. Build a flexible working environment
Business leaders should embrace remote working and flexible hours. This isn't possible in some industries where front-of-line staffs are required at all times for customer service. But if your employees work in terms of deliverables, not face time, let them decide where they work best.
So, what are the key takeaways from this? You don't always need to pay more, you may just need to pay attention. Employees want to be appreciated, they want to continuously learn, and they want to know that there's room to grow within their current organisation.