Did you ever feel that employee retention is more challenging than hiring? Today, many employees seek new opportunities and move to more conducive workplaces the moment they find one. But why do people switch jobs often, sometimes at the drop of a hat? The major contributing factors for low employee retention are disengagement, lack of motivation, poor employee experience, and excess burnout with work.
Frederick Herzberg, a famous psychologist, in his Two-Factor Theory, states that certain job factors cause satisfaction while others cause dissatisfaction in employees. He then classified these job factors as Hygiene Factors and Motivational Factors. Hygiene factors include pay, job security, working conditions, interpersonal relations, etc. These factors pacify employees and prevent them from being dissatisfied. Motivational Factors include recognition, meaningful work, responsibility, sense of achievement, etc. These factors provide satisfaction to employees and are rewarding.
Both these factors not only assist you in employee retention but also help in understanding employees better.
Let us take a look at the different ways to retain the top employees.
4 Successful Ways of Employee Retention at Workplace
It is not easy to let go of top-performing employees for any business. As discussed above, you can use Herberg’s Factors to think of unique ways to prevent your employees from quitting. Or, here are 4 effective employee retention techniques you can try now!
1 Focus on cultural fit while hiring
One of the best employee retention techniques is to hire people who fit well in your company’s culture. This is a crucial factor that you may miss out on often. Instead of going by a set interview process, you can screen candidates based on the company values and how they perceive them. Because such culturally fit employees blend well and perform better. And once they grow in a desirable environment, they stay longer.
2 Recognize and reward efforts
Spreadsheets offer results for a given task, not the actual effort that went in. To genuinely appreciate your employees, you must review their efforts and the circumstances in which they achieved the results. Rewarding employees for their efforts makes them satisfied, and it is easy to retain them for long. They stay your top-performing employees and contribute significantly to the company’s growth.
3 Offer ESOPs to employees
If you want to compensate your employees in the best way, Employee Stock Ownership Programs (ESOPs) are a great choice. You can offer ESOPs as a bonus or incentive, making your employees stakeholders of the company. This encourages them to invest more in the company’s growth and remain for a longer time. Note that ESOPs will not be beneficial to employees if the company is under loss. And employees may not be willing to stay in a company that’s not performing well. Use this option for employee retention only if the company can afford it and employees will benefit from it.
4 Promote Diversity and Inclusion
A workplace that identifies and respects different backgrounds, ethnicity, and sexual preferences of its employees attracts more talent. Employees feel comfortable and inclusive in organizations that follow an inclusive culture and ensure even everyone follows the same. Small changes like building a multifaith prayer room, addressing people the way they prefer, and removing all gender-coded signs in the office have a huge impact. It is a great way to retain employees and also make them feel wanted in the office.
Employee retention is an art that is fostered by building the right culture and values. If you really care for your employees, you can successfully retain them for a long time.