Employee Retention Strategies

As noted in yesterday’s post, employers should pay attention to employee engagement, and might want to start looking at ways to increase employee morale so as to improve workforce performance and retention. A recent article in the Staffing Industry Review provides a roadmap, effective strategies toward mitigating employee turnover:

1. Sincerely thank your employees for their contributions in pulling the company through tough times – not surprising but important and often overlooked.

2. If your employee benefits program isn’t competitive, find ways to make it more attractive – e.g., an extra day of paid time off can go long way toward improving morale.

3. Conduct a salary survey to ensure your firm’s wages are competitive – especially critical if there have been wage cuts across the prior year.

4. Be open to flexible work arrangements – Studies show happier employees, those who are allowed work/life flexibility, often yield a lower cost structure for the company.

5. Find creative ways to recognize and reward your workforce – e.g., schedule unexpected company dinners, or team-building activities.

6. Start investing in top performers – A 2009/2010 Watson Wyatt and WorldatWork survey (PDF) revealed that employee engagement dropped by nearly 25% among top performers, reason enough for concern.

7. Stop beating your sales team – Try saying “I want you to be successful” versus “Make the number or else” … more motivator than dictator.

8. Be open about new positions you anticipate creating as business improves – Reward loyal employees with promotions when merited and makes financial sense. Employees who feel there is a sense of momentum to their career will likely stay longer and contribute more.