Introduction
According to research by the Work Institute, by 2023, 35% of employees will be leaving their jobs each year. Employee retention is a major headache for HR managers and businesses. Employees that quit a job cause losses in hiring and training new employees. SHRM estimates that it costs $20,000 to $30,000 in recruiting and training expenses to replace a manager making $40,000 a year (Source: People Keep). The causes for quitting range from personal and professional reasons to ideological ones. The Great Resignation has again proved the need for great management and the need for employee retention. Whatever the reasons are, HR managers can minimise this through several techniques with the help of company management. Here are some simple but highly effective solutions for employee retention that hiring managers can implement.
8 Employee Retention techniques for HR managers
1. Hire the right person from the start.
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A Glassdoor survey found that 35% of hiring managers expect more of their new hires to quit their jobs in a year. Despite doing everything in their power to hire the right talent, employee retention has become a challenge for human resources managers. To judge talent, hire, and only to watch them quit, is unproductive as well as disheartening. However, with a clear-cut hiring process, hiring managers can minimise the resignation rate. Hiring the right person requires thorough research about the company, the vacant role, the goals of the job, its perks, and total transparency in the whole hiring process. Planning the recruitment process from beginning to end is key for this hiring process.
Understand the company and the role of the employee.
Every company is different, and so are its management styles and cultures. Even before the hiring process begins, do research and understand the company inside out. Research the office culture, employee satisfaction levels, and perks. Research online for comments on the company and interview more mature employees about why they like the company. This way, hiring managers can develop a rough idea of the loyal workforce of the company. This can come in handy in interviews and shortlisting. Besides, human resources managers will have better insights into employee retention through the loyal workforce of the company.
Next, understand the tasks the potential employee must do day to day. In the modern work environment, there are several modes of working in the workforce. To name a few, permanent, temporary, contact-based, freelancers, and project-based. Thoroughly research the role by interviewing the management, relevant departments, colleagues, and team leaders. If the position has become vacant recently, try to understand why the previous employee quit the job. If possible, hold an exit interview with them when their quitting is inevitable. This way, recruiters understand the overlooked factors that have eluded their judgement.
Use AI but wisely
Write clear-cut job descriptions.
With the factors and insights gained from the extra work mentioned above, it will become easier for recruiters to write job descriptions that attract the right talent. For human resources firms, artificial intelligence tools save time in writing a winning job description. It also helps in many aspects of the hiring process. Even then, human resources managers must be vigilant to attract only the right talent with the right keyword and job description. An honest and clear-cut job description that states the role and perks of the job along with what is expected from the prospective employee can greatly improve the quality of applicants. The job description serves as the primary point of contact between a prospective employee and the company. Hence, every aspect of it must be seriously reviewed by the recruiters, even when an AI program writes it.
Profile filtering
In the digital age, applying for a job has become as easy as clicking a button on a mouse. As a result, there are dozens to hundreds of applications for every job that is posted on job boards. Sifting through these numerous applications is a time-consuming job for hiring managers. As a result, many automation and artificial intelligence software applications have emerged to assist human resource managers. Many HRs are using these tools in their hiring process. Though this can be helpful in many ways, it can also filter potential employees that lack a qualification. For example, the amount of experience or the need for a Masters Degree for a job can discourage many deserving candidates from applying for the job. Even if they apply, their applications are at the risk of being rejected by the filtering software. Because of this, being mindful of the automation process and its limitations is a key consideration for human resources managers.
Use skill-based hiring
It can greatly reduce employee resignations in the workplace. In recent years, skill-based hiring has become popular because of its numerous benefits. First, it focuses on the skills and mastery of the employee instead of other aspects like experience and academics. However, as the lack of any or both of these can quickly become a hindrance for senior management jobs, this is preferred only for entry-level jobs. As the new employees will have the necessary skills and mastery, they will need little to no training. In this way, companies can also earn employee loyalty and thus increase employee retention rates. Similarly, value-based hiring can increase the chances of employee retention if both the company and the employees' values align with each other.
2. Create a smooth onboarding process
A transparent and easy-to-follow onboarding process can also help with employee retention. This helps the employee understand the company culture and work requirements and leaves little room for doubt and guesswork. According to SHRM, a strong onboarding experience ensures that 69% of employees work n the same company for at least three years (Source file: SHRM).
3. Create a respectful workplace.
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Workplace conflicts and bullying can negatively affect employee retention. According to a 2018 survey, 58% of workers had quit or considering resignation due to workplace conflicts (Source: Randstad). Some of these bad days are caused by management and some are due to office conflicts. This is why an office culture that is inclusive and treats every member fairly is important. Weeding out religious, ethnic, lingual, and cultural prejudices, racism, and gender biases can greatly increase office harmony. This can be done through organising events; celebrating festivals and birthdays together; company tours and parties; and volunteering for social causes. These increase employee retention rates by providing platforms to connect and build relationships for employees.
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Give priority to employee safety
Safety is a major concern in industries that are more likely to be hazardous to employee lives. Machine work, agriculture, logistics, and construction work are some of the most dangerous jobs out there. However, there are also several other safety concerns to take into consideration as well. Women's safety is one of the primary areas where companies should invest. Safeguarding them from threats within the workplace, providing reasonable work hours, and company-sponsored safe travel methods can increase the chance of women's employee retention. Overall, human resources must advise company management on how to create a physically, mentally, and socially safe workplace. Hiring an Occupational Health and Safety Manager can help in this case and greatly minimise stress for HR managers.
4. Give industry standard Compensation to the employees
According to a Glassdoor survey, 45% of employees quit meeting their salary expectations. This is found to be the top reason for employees to quit their jobs, among other reasons such as career advancement, other benefits, and location. In this competitive world, many startups and small businesses are looking for talents to fill their voids in technical, management, and operational teams. The industry standard for salary must always be kept under watch. Without competitive pay, employees are more easily lost in the pool of other opportunities.
However, money is not the only motivational factor for employees. In the age of machines and computers, money can barely bring job satisfaction, meaning to work or help in an identity crisis. The changing work routines have brought about cultural shifts such as urbanisation and higher rates of mental health issues, to name a few. The financial security of the family is not the only reason for employees to work. The pandemic and its destructive effects on the healthcare system have proved the importance of other benefits in healthcare and insurance for employees. According to a survey, 56% of employees said that healthcare benefits and insurance are major factors in deciding whether to keep a job or not.
Provide Mentorship programs
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Employees do not just work for salaries and perks. Most employees want to go further in their careers into unexplored domains in the industry. Nobody wants to be stuck in the same job role forever. This is also a primary reason why employees quit jobs and join other companies for better perks and learning environments. HRs can strategically minimise these by providing mentorship or coaching programs to high-performing employees. As many employees struggle to get an authorised mentor, companies can take the initiative and provide them with adequate training, internal knowledge-sharing programs, coaching, and mentorship. Moreover, the personal relationship between employees and their mentors can increase the value they find in their job. More than anything, such a mutual understanding and opportunities through mentorship can create a loyal workforce. HRs can use this to their advantage by advising management in this area.
Give access to education sponsorships
Education, especially higher education, is becoming increasingly popular nowadays. Many senior management jobs have academic requirements for prospective candidates. This is why many senior professionals without higher education have been stuck in management roles for a long time. In other cases, high-performing employees recognise these academic requirements early. They want to level up their academics to move further in their career. These long-term goals need support from the company. HRs can use this ambition to their advantage by creating education sponsorship programs for their employees. While some companies sponsor their employees' full education costs, others sponsor part of the costs. Work with the company management to introduce new education sponsorship programs and help deserving employees achieve their full potential. This not only increases employee loyalty, but also brings additional skills, qualifications, and knowledge to the table.
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Flexible work arrangement
According to a Flexjobs report, 97% of employees love hybrid or remote working! The reasons for this are flexible work hours, the lack of travel in dense traffic, and the availability of time for other commitments. Though the pandemic is over, the trend of hybrid workplaces is here to stay. Due to their benefits for both the company and the employees, remote working or hybrid working can help with employee retention. HRs can use this simple but effective technique by creating hybrid work models with company management. Remote work on specific days of the week, preferably adjoining weekends and holidays, will give employees extra time with their families.
5. Be a brand your employees are proud of.
Corporate Social Responsibility(CSR) helps employees stay in a company that is involved in creating a better world through helping humanitarian causes (Source file: Emerald). Fighting for social justice and contributing to the environment can all help build a positive outlook for the brand. Simple contributions to society like sponsoring the education of underprivileged women or the oppressed, planting trees and volunteering in elder care facilities, and mental health facilities can give employees a sense of human bonding. It not only builds the brand's image outside the company premises but also in the hearts of employees. As more and more employees are looking for the element of meaning in their work, charitable campaigns like these help them find a cause in their jobs. Indirectly, this can help in building a loyal workforce. Read more about this topic on this blog - Building a Strong Employer Brand.
6. Give employees time for other commitments
Relaxation time and work-life balance give employees a healthy working environment. This can prevent employee burnout and increase their productivity.
Sabbatical
Giving short sabbaticals can help in boosting employee productivity. Though these are not widely researched, a few companies have noted that giving an annual sabbatical of around a month can give employees a much-needed break. This helps them to look after other commitments.
7. Use recognition and reward systems
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Acknowledging milestones and rewarding employees keeps employees loyal. Human resources managers must strive to build strategic rewards and recognition systems within their companies.
Rewarding the Efforts
HRs can help management identify employee efforts despite a lack of results. This not only boosts employee productivity and minimises stress but also gains the employee's loyalty.
Job security and career advancement
Providing a blueprint to advance in their career can keep employees interested in the company. A transparent promotion system that works on employee contribution, expertise, and academic qualifications can make these goals achievable for employees. Without room for growth, companies can quickly lose high-performing employees. Giving adequate job security with incentives, insurance, and other perks will also help with employee retention.
8. Hire the best managers
Managers play an important role in smoke retention. Keeping an eye on all the managers can be beneficial for human resources departments in several ways. It is said that people leave managers, not companies. Managers are the bridge between employees and senior management after the hiring process. Hence, a healthy relationship between management and employees is a must for all companies. The Human Resources department must make this a clear point to the management. Creating awareness and training programs for managers at the highest levels can help strengthen employee-manager relationships. According to a 2019 study, 57% of employees quit their jobs because of a poor relationship with their managers.
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Conclusion
Employee retention can be as hard or as easy as HR professionals make it. This depends on cooperation between the company's management and human resources managers. HR managers can easily retain a major part of their workforce with the above-mentioned techniques. Identifying employee mindsets about the company and their work makes retention easier. As the work patterns are evolving, the retention tactics will also evolve. Understanding employees and giving them what they deserve, on the other hand, will help companies build a loyal workforce.
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