8 Smart Strategies for Increasing Your Employee Retention Rate
Millennials now make up the largest part of the American workforce. One of the many differences between them and previous generations is their employee retention rate.
They care more about the experiences of here and now. They want to telecommute. They want to grow.
This young generation isn't going to work at the same job for 40 years like their parents and grandparents. If they aren't happy, they will leave. Many are finding the grass is indeed greener on the other side -- or at another company.
Keep reading for 8 ways you can increase your employee retention rate.
1. Offer Growth
Millennials want to grow. And they will, with or without your company. Half of them keep an eye out for new employment opportunities and over a third have changed jobs in the last three years.
If you want to keep your talent in-house, you're going to have to do your part to increase your employee retention rate.
Make it clear in the interview process where this role can lead and how the prospect can get there. Reading body language and facial expressions can give you a great idea as to whether or not this person is the right fit for the job.
They'll also tell you if the applicant is willing to grow with your company.
2. Coach, Don't Manage
One of the many reasons people want to work from home or have flexible schedules is the burden of dealing with management. Having a boss constantly looking over their shoulder tells them that the company doesn't trust or believe in them. It also seriously wastes time.
Is this really the kind of message you want to convey to the people who are making your company better?
3. Dig Deep in Your Pockets
Want your employees to stick around?
Pay them a living wage.
The cost of living, especially that of housing, is increasing faster than wages. One survey by the Society for Human Resource Management found that nearly 40% of regular employees left their job because of inadequate pay.
We aren't telling you to overpay. But if you have a talented person working for you, why not pay them what they deserve? Between the hiring and training process, you'll spend less in the long run by giving the best employees what they need to be successful.
4. Company Culture
What is company culture? In essence, it's the personality of your business. This includes how formal or casual your office is, your mission and core values, as well as your expectations and goals.
Why does it matter? People want to enjoy going to work every day. They're more likely to enjoy it if the company's culture blends well with their own.
The traditional culture of wearing a shirt and tie, sitting in an isolated cubicle, and being forced through one verbose meeting after another is becoming a thing of the past. People don't want to work like that anymore. They're putting their foot down and forcing businesses to listen.
Here is a list of companies who are doing it right. What should come as no surprise is most of them are in the tech industry, which has always had a knack for pioneering innovative work culture.
5. Alternative Benefits
Insurance is great. You know what's even better? Tuition reimbursement.
This is just one of many alternative benefits you could (and should) offer to maximize your employee retention rate.
One way you can do this is by paying for education they receive while working for you. Another is to help pay back their student loans.
You can increase your employee retention rate by making them sign a contract stating how long they must work for you before this benefit is implemented. Or, you could pay it in full up front, and the contract could require a certain amount of years of employment in return.
6. Work-Life Balance
This is the crux of the modern work environment. People don't want to work 60 hour weeks. And they won't.
Their lives away from work are taking precedence over their work life. Millennials want to be healthy and free. They want to be home for dinner, take off to go to their daughter's recital, or make their son's soccer game.
If you and your company cannot provide a decent balance for your employees, your retention rate will plummet.
Another major reason many people leave their jobs is because they feel overworked. This leads to stress, which has been linked to a plethora of health concerns.
For the best employee retention rate, build a team of talented individuals and make sure they're challenged without being overworked.
7. Flexibility With Scheduling
Not every business is capable of letting employees work remotely. But freelancers now make up a large portion of the workforce.
People see their friends, neighbors, and family working from home in their pajamas -- and they desperately want a piece of the action. Compromising on this can help convince your employees to stay with your company.
Offer them one day a week of working from home if you can. Modern technology is capable of keeping you in touch with your team with just the push of a button.
You can use programs like Slack and Discord to communicate with everyone at the same time. Not only will this give your employees a feeling of independence, but it can free up your management team to spend more time on top-level projects.
8. Hire Wisely
Don't hire people because they're "good enough." Instead, hire the right people. Those who fit in with your company culture and your existing team.
Discontent breeds discontent.
Giving a job to someone with a toxic persona will continuously poison the rest of your team and eventually the business itself. Weed out the bad, hire the right people for the right job, and then go out of your way to keep them happy.
The result will be a better business that makes more money.
Final Thoughts on Employee Retention Rate
The bottom line is that you need to treat your employees well.
Prove to your employees, clients, and customers that you are the business you say you are.
If you are the best business in your field but you're struggling to keep your talent in-house, Scope recruiting can help. Contact us to find out how.