The Great Resignation is upon us, and companies are now facing two major issues: how to attract and retain the ideal talent and what to do when navigating the new world of work post-pandemic. The talent crisis is real, and many HR managers struggle to find new talent to sustain their organization’s growth. Employee attrition and retention are two significantly different ways of dealing with the same situation.
This article will help in understanding employee attrition and turnover better.
Attrition is a natural process by which employees leave the workforce. Employees exiting a company can be caused by various factors, such as a change in career path or the desire to take a better offer. In such a case, an organization takes a strategic decision not to replace the employees who leave. The employee may leave voluntarily or involuntarily- resignation, termination, death or retirement are the most common reasons behind attrition. And several companies may decide not to rehire these employees.
The term turnover is often used to describe the number of employees who leave a company during a specific period, let’s say, within a year. However, this term is misleading as it refers to the rate at which an organization changes its workforce by replacing departing employees with new ones. Some experts opine that only positions that have already been filled and vacated should be considered as turnover. This rate includes those who exit voluntarily and those who are fired or laid off - involuntary turnover.
Employee retention measures how many people stay with a company for a certain amount of time. This is usually determined by how engaged the employees are and whether or not they are looking for other work. Implementing effective retention strategies can help prevent turnover and boost employee productivity.
Here are some mantras for employee retention:
• Healthy work environment
• Rewards and recognition
• Scope for growth and development
• A healthy relationship with the manager
• Competitive compensation
Let’s discuss some practical strategies for retaining your talent.
1. Understand the employees
Every employee has potential; if they feel safe and supported, they bring out their full potential. Having a supportive environment can help the workforce stay longer in the company.
Managers should treat the staff members like family. Understand that these people have emotions and can be good one day and can be really bad the other day. Above all, each employee will possess a unique ability the company requires, and it is the HR manager’s call to identify it and help them bring it out with a positive environment which will lead them not to quit the jobs. Simply put, managers should consider their team members human beings rather than machines.
2. Prepare a competitive package with benefits
Before the managers hire new employees, make sure that they find a competitive salary range. This can be done by conducting a comprehensive research campaign and consulting a consultant. Ensure that all the employees are aware of all the compensation they’ll receive, such as bonuses, stock options, and reimbursements.
One of the most critical factors employers should consider while hiring new employees is the availability of health and wellness benefits. These can be a form of employee appreciation which leads the employees to stay longer rather than run to other firms.
3. Employee well-being should be a priority
Investing in employee well-being can help businesses lessen employee burnout and improve their morale. It can also help the company grow economically. Trust is built naturally when employees recognize the management focusing on their well-being.
One of the significant factors employers should consider when investing in their employees’ well-being is ensuring that they are set up to work efficiently and effectively. Conducting a well-designed wellness program for the employees once in a while will help.
4. Prevent it by celebrating
One of the most effective ways to improve employee retention is by preventing them from quitting. This may seem like an overly simple idea, but it’s actually true. If employees are happy with their work, they’ll most likely stay in their jobs for a long time. Don’t wait until someone has officially left their job to start talking about retention.
The most contagious factor that can affect employee retention is the loss of talent. To prevent this, managers should ensure that the company is celebrating the contributions of the team members and getting feedback.
5. Say yes to flexible work culture
When you provide a flexible work arrangement as a part of your employee retention strategy, employees are more likely to feel satisfied with their work. This is because they can take advantage of these opportunities to accommodate their personal needs and schedule their day around their family or medical needs. While the hours worked remain the same, employees who can take advantage of these flexible options are more likely to feel motivated and able to perform their duties.
Employees can significantly increase their satisfaction by choosing to work on their own schedule or a compressed workweek, which allows them to do so without affecting their output.
6. Be proactive in implementing strategies
Due to the tight labor market, employee retention strategies are crucial in today’s environment. They can help prevent employees from leaving the organization and causing unmanageable workloads. Hence managers should be proactive and prepare for every possibility of keeping the employee in the company, guaranteeing productivity for the company and the employee. When managers work with prudence, actively asses and keep reviewing the strategies when necessary, employee retention will no longer be a concern for your business.
The rise of remote jobs has made it harder for companies to attract the right talent. As the job market continues to improve, it’s vital that companies follow the latest trends and standards. Managers will not have to replace every employee every year. Instead, they can regularly review the employee retention strategies and take advantage of the staff’s feedback. This can go a long way not only in improving the quality of the workforce and employee retention but also in balancing attrition and turnover.