While hiring talent that aligns with your organization’s culture is challenging, developing effective employee retention strategies in today’s dynamic work environment is even more complex. The traditional power dynamic between employers and employees has shifted, with employees now seeking workplaces that truly value and develop their unique strengths. This is where strengths-based approaches, such as the HIGH5 strengths assessment, can play a crucial role. By helping organizations understand and leverage their employees’ natural talents, these tools can transform retention strategies from generic practices to personalized experiences that resonate with each individual. As we explore various retention strategies in this article, keep in mind how understanding and applying employee strengths can enhance each approach, creating a workplace where employees feel genuinely valued and motivated to stay.
For some, the COVID-19 pandemic allows them to redefine what meaningful work means and pursue it. So, employee retention is critical for retaining your high-potential talents and top performers.
As a result, organizations are eager to understand what drives employee retention. A recent CFO survey found that challenges with retaining talent outweigh every other internal risk in 2022. And employee retention isn’t only about offering attractive financial compensation.
In this article, you will learn effective employee retention techniques you can adopt in your organization. In addition, you can get to understand why employee retention is critical for your business and the reasons why employees quit a company.
What is an Employee Retention?
Employee retention refers to an organization’s capability to retain its existing employees. Organizations committed to retaining their employees implement strategies that go beyond competitive remuneration packages. They focus on increasing employee engagement by understanding and leveraging individual strengths. Tools like the HIGH5 strengths assessment can play a crucial role in this process. By helping employees identify their unique talents, organizations can create a work environment where individuals feel valued and motivated to contribute their best, naturally reducing turnover and fostering long-term commitment.
Those with high employee retention rates have an edge in creating a more stable and effective workforce. They may also be more likely to reach their organizational goals and attract new talents.
A well-established employee retention strategy serves as a critical differentiator over its competitors. The organization’s ability to retain its talent also impacts its ability to execute its business strategies.
In essence, the longer the employees stay with the organization, the higher its retention rate.
Pro Tip From HIGH5
Integrate strengths discovery into your onboarding process. Encourage new hires to take the HIGH5 strengths assessment within their first month. This not only helps them understand their natural talents but also allows managers to tailor assignments and development plans to each employee’s strengths from the start, setting the foundation for long-term engagement and retention.
Why Are Employee Retention Strategies Important?
The consequences of employee turnover are far-reaching and go beyond short interruptions. Employees’ responsibilities will usually fall on their colleagues’ shoulders whenever they leave their organization. The increased workloads might result in a decline in productivity levels and an increase in stress.
These overworked employees get frustrated easily, which negatively influences their work performance. Lower employee performance undermines the organization’s product offerings or services. And ultimately leads to poor customer experience and risks harming the organization’s reputation.
Without a proper employee retention plan rooted in understanding individual strengths, your organization may struggle to expand or execute its strategy effectively. The HIGH5 strengths assessment can be a game-changer in this regard. By helping employees identify and leverage their unique talents, organizations create an environment where people feel valued and engaged. This not only aids in retaining top performers but also attracts new talent who are drawn to a workplace that prioritizes personal growth and strengths utilization. Remember, an organization that retains and develops its talent based on their strengths is better positioned to attract new, high-quality candidates.
An organization may also risk losing its culture and identity which separates itself from competitors. Hence, employee retention is integral to improving the organization’s bottom line and culture.
Here are ten benefits of having excellent employee retention strategies:
- Employees are more committed to the goals of their organization
- Create a healthy, inclusive, and flexible work environment
- Increase camaraderie and strengthen the connections between the employees
- Enhance employee morale and productivity
- Reduce hiring expenses by minimizing hiring rates, training new employees, and sign-on incentives
- Build a skilled workforce of the future that is equipped with the necessary skills and qualifications
- Increase company revenue due to lower hiring expenses, increased productivity, etc.
- Increase employee satisfaction and engagement
- Improve an organization’s brand and make your organization stand out in the market and among top talents outside
- Improve organization and customer relationships creating brand loyalty
Pro Tip From HIGH5
Use strengths-based language in your job postings and employer branding materials. Highlight how your organization values and develops individual HIGH5 strengths. This approach not only aids retention but also attracts candidates who are looking for workplaces that will appreciate and nurture their unique talents.
15 Examples of Employee Retention Strategies
Exceptional Onboarding and Orientation Program
Employee retention starts on their first day at work. A seamless onboarding process makes new employees feel welcome in their new workplace.
They get the impression that they’re working in a company that cares about them. They will also think that the company is setting them up for success in their role. And this will create a safe environment for them to voice up and learn.
It takes around two years for a new employee to achieve the same productivity level as existing employees. So making them feel at ease and competent from the first day.
Mentorship Programs
Partnering a new employee with a mentor is a fantastic addition to your onboarding program. In a mentoring program, mentors will welcome new employees, provide support, and help them get comfortable. Such a program is a win-win situation for both parties. New joiners can learn the ropes from experienced colleagues.
The mentors may benefit from the new joiners’ fresh perspectives. A mentor-mentee program is also beneficial to your existing employees. It may increase your overall employee retention forecast and employees’ job satisfaction level.
Employee Compensation
Conduct some research (or engage external consultancy) to define a competitive pay range for your personnel. Make salaries consistent and equitable for all. Ensure that your employees are also fully aware of all the other aspects of their compensation package.
For example, the package may include yearly bonuses, reimbursements, stock options, and allowances. Make the qualification process for this compensation transparent to everyone. It helps avoid any potential confusion and conflicts with your employees.
Perks
Perks may help your organization stand out to potential new talents and re-engage current employees. It will also improve your overall employee morale. Some additional perks are hybrid options, flexible schedules, and remote work opportunities.
Furthermore, paid parental leave and baby insurance are a big plus, especially for married employees.
Well-being Offerings
With the lingering COVID-19 pandemic and economic uncertainty, it’s no surprise that over half of employees globally reported feeling burned out. Most organizations know the best tools for combating burnout. These include manageable workloads, two-way open communication, and a positive workplace culture.
Some additional measures may include reimbursements for gym memberships, spas or massages, and insurance coverage for counseling and mental health services. You can also offer your employees access to digital wellness or meditation platforms to improve their overall health.
Communication
In every relationship, it’s critical to listen closely to what’s being said and what’s not said. Communication is a crucial determining factor in how a team will function. It encourages team members to communicate, collaborate, and resolve problems whenever they arise.
Make sure to invest time and effort in improving communication skills across departments and job levels. Transparent and open communication helps resolve (and prevent) situations that may cause low engagement and high turnover.
Employee Engagement
Employees who are disengaged are damaging to your organization. They lower overall employee morale, discourage others from performing, and create a toxic workplace environment. Not giving employees a say in the organization will reduce employee engagement.
Employees nowadays want to have a say in decisions that will impact their careers and the future of the business. Hence, giving them a platform to voice up may significantly enhance retention. Great companies do not stop at listening to their employees.
Instead, they will turn their employees’ feedback into action. Such action will let the employees feel that the management values their feedback.
Training and development
While upskilling is crucial in our rapidly evolving technological landscape, it’s equally important to develop employees’ natural strengths. The HIGH5 strengths assessment can be a powerful tool in this regard, helping employees identify their innate talents. By combining strength development with technical upskilling, organizations can create a workforce that’s not only technically proficient but also deeply engaged and resilient to change. This approach allows employees to acquire new skills while leveraging their unique strengths, making them more adaptable when organizational directions shift. Prioritizing this dual approach to employees’ professional growth – developing both skills and strengths – can significantly enhance your retention strategy.
For example, allow them time to participate in virtual conferences or pay for their continuous education. It is also critical not to overlook your organization’s succession planning strategy. Succession planning is a powerful tool for nurturing existing talents to become your future leaders.
Manage to Retain
Managers’ relationships with their direct reports significantly influence the employee experience, and a strengths-based approach can transform these relationships. Great managers, armed with insights from tools like the HIGH5 strengths assessment, become effective coaches who understand each team member’s unique talents. They use this knowledge to assign tasks that align with individual strengths, offer targeted appreciation, and provide constructive feedback that resonates with each employee’s natural way of working. By focusing on bringing out the best in their team members through a strengths-based lens, managers can dramatically improve employee engagement and retention.
A coaching approach facilitates mutual trust and fosters continuous learning. A great manager will set clearly defined goals and regularly evaluate their team’s progress. This would let employees know where they are and what to do to achieve goals.
Pathways for Career Growth and Advancement
In today’s rapidly evolving work landscape, employees are keenly aware of the need for continuous growth and development. However, many express concerns about limited career advancement opportunities within their organizations. This is where a strengths-based approach, facilitated by tools like the HIGH5 strengths assessment, can make a significant difference. By helping employees identify and leverage their unique strengths, organizations can create more personalized and fulfilling career paths. Instead of a one-size-fits-all approach to advancement, companies can use strengths insights to craft roles that allow employees to do what they do best every day, leading to higher job satisfaction and improved retention.
So, left with no choice, they start looking outside the organization for their next career move. They opt for a career test like this to guide their choices.
Having a targeted and transparent career pathing can improve employee engagement. So, work hand in hand with employees to establish goals and create a learning and development action plan. Employees will feel confident and secure when they know their future with the company is full of possibilities.
Organizational Culture
While organizational culture can appear subjective, its effects on employee retention are undeniable. One of the main factors of employee satisfaction is corporate culture. The ingredients of an attractive workplace culture may differ slightly from one organization to the next. But all of them consist of essential qualities such as:
- clear and well-defined company values
- open and transparent communication
- strong commitment to diversity, equality, and inclusion.
- supportive leadership
Continuous Feedback on Performance
Many organizations are forsaking the yearly performance appraisal cycle in favor of more regular team meetings. Discuss your employees’ short and long-term career aspirations in these one-to-one sessions.
You can use these sessions to visualize their future with the organization and how they can contribute to the organization.
You should never make empty promises to employees. Instead, make time to explore potential career advancement possibilities with them. Then, work together to develop a realistic plan for achieving those career goals.
Effective Change Management
Aside from the current disruption caused by the pandemic, any organization must deal with both good and negative changes. Employees look to their leadership team for guidance and confidence during difficult periods.
If your organization is going through a significant transition, keeping your workforce engaged and informed with the latest updates can reduce anxiety and control the rumor mill.
Make major announcements individually or as part of a team call or meeting. Make sure to give time for employees to voice their concerns and ask questions.
Celebration of Milestones, Big and Small
Another method to improve employee retention involves celebrating outstanding achievements. If you decide to celebrate, ensure it’s a meaningful and enjoyable experience for everyone.
Whether your team completes a big project ahead of schedule or an employee hits their fifth work anniversary doesn’t matter. Make an effort to celebrate your team’s every milestone or accomplishment.
Recognition and rewards systems
Happy employees tend to perform better and will stay with the organization longer. Yet more than 80% of American workers claim they are neither acknowledged nor rewarded in their workplace. Building a culture of recognition entails more than simply acknowledging employees regularly.
It warrants specific and consistent recognition. So, ensure your organization has a compelling recognition program to recognize and appreciate your employees’ contributions.
Why Are Workers Leaving And What are Possible Negative Effects?
For many years, the reasons why people leave their jobs remained largely unchanged. It was usually because of a lack of career advancement, poor management, or a new job opportunity. However, the Great Resignation spurred on by COVID-19 has unearthed some fascinating new trends.
Everyone is seeking higher income or jobs with good work-life balance and working conditions. Because it’s now a candidate’s market, everyone is taking this opportunity to quit their existing career and search for better opportunities elsewhere.
Understanding why employees quit their jobs can help you craft a fit-for-purpose employee retention plan.
Below are seven typical reasons why talents leave their jobs:
- Micromanaging
- Misalignment of organizational values
- Lack of appreciation unappreciation
- Poor compensation package
- Feeling trapped
- Ineffective communication
- Work-life balance
FAQ About Retention Strategies
What is the best way to motivate retention?
There is no one-size-fits-all way to motivate retention within an organization. The Great Resignation spurred on by COVID-19 has unearthed some fascinating new trends of what employees are seeking.
Everyone is looking for higher income or jobs with good work-life balance and working conditions. Some do it by increasing employee engagement, providing competitive remuneration packages, etc.
Case Studies, Academic, and Research-Based Sources:
- Allen, D. G. (2008). “Retaining Talent: A Guide to Analyzing and Managing Employee Turnover.” SHRM Foundation. This guide provides a comprehensive overview of employee turnover and retention strategies.
- Buckingham, M., & Coffman, C. (1999). “First, Break All the Rules: What the World’s Greatest Managers Do Differently.” Simon & Schuster. This book provides insights into management practices that contribute to high employee retention.
- Gallup (2017). “State of the American Workplace Report.” Gallup. This report offers extensive data on employee engagement and retention in the American workplace.
- Pink, D. H. (2009). “Drive: The Surprising Truth About What Motivates Us.” Riverhead Books. This book discusses the role of intrinsic motivation in employee engagement and retention.
- Kotter, J. P., & Schlesinger, L. A. (1979). “Choosing Strategies for Change.” Harvard Business Review.
- Gostick, A., & Elton, C. (2007). “The Carrot Principle: How the Best Managers Use Recognition to Engage Their People, Retain Talent, and Accelerate Performance.” Free Press.
