The pandemic spurred on remote work models and for most, this was a welcome change from the ways of old. However, despite the autonomy and enhanced productivity, issues like burnout stayed a concern. In fact, burnout numbers increased significantly in 2021 with 52% of employees experiencing it as per an Indeed report. This comes as no surprise, especially with regard to the Great Resignation and the factors that led to it. With millions of employees leaving their companies, low pay and insufficient growth opportunities were two of the top reasons for 63% of employees quitting their jobs. Even in 2022, the issues persist, with 88%of employees on the fence about their company.
For those who quit, things weren’t grim. In 2021, 61% found a new job with ease, with 33% finding a new opportunity fairly quickly. Much of this success is attributed to companies adapting to the need of the hour. By offering better perks in line with evolving needs, employees found a better fit. In fact, over 50% of the employees who quit now have better pay, more flexibility, career growth opportunities, and more, according to a PEW report.
Revised strategies gave companies a competitive edge, and the same goes for retention too! The models of yesteryear are no more suitable in a digital landscape, and to retain talent, leadership must think outside the box.
To shed insight on trending winning strategies, here are tried-and-tested strategies for enhanced retention.
Maintain transparency to build trust
Trust and transparency are key to retaining employees and also building organizational culture. While both these elements exist in many forms, when it comes to retention, work responsibilities and salaries come into question most often. Companies looking to retain their talent must realize that trust and transparency can only be established if it is uniformly enforced across all operational verticals.
Trust and transparency are key to retaining employees and also building organizational culture. While both these elements exist in many forms, when it comes to retention, work responsibilities and salaries come into question most often. Companies looking to retain their talent must realize that trust and transparency can only be established if it is uniformly enforced across all operational verticals.
Netflix, on the other hand, established trust by assigning responsibility. Through the ‘No Vacation Policy’, Netflix offers unlimited paid leaves to its employees, and trusts its employees to do what’s best for the company. As a result, it has an under average turnover rate of just 11%.
Encourage self-expression and identity
A toxic work environment is a major reason why people quit companies. Naturally, the fix here is to build a healthy environment, one that focuses on employee satisfaction and engagement. One effective way is to encourage employees to bring their whole authentic selves to work. A great example of a company that fosters this culture is Northrop Grumman Corporation.
Featuring amongst the Fortune 100 leaders in employee retention, their core philosophies are centered around diversity and inclusion (D&I). At the company, employees are encouraged to express themselves however they deem fit. In fact, this kind of messaging enjoys the support from upper management, as their CEO is vocal about freedom of expression. Northrop Grumman Corporation was even celebrated for its diversity in 2020. All of these factors combined help it enjoy the retention rate it does.
Invest in employee career development
When employees feel that the company is invested in their career growth, they are more inclined to stay. This is an undeniable fact, especially for millennial workers, 41% of whom say that it is a vital factor of job satisfaction. A key aspect of career development for employees is internal mobility. Companies can make internal mobility a key factor as it can help employees learn new skills and improve retention. Research reveals that companies can increase retention at twice the rate by implementing internal mobility.
One of the world-renowned companies, Google has an 80/20 program that allows employees to explore and do side projects. The program encourages employees to put 20% of their time into side projects to help them advance their skills and capabilities. A program like this also allows employees to break free from their routine and change things which helps boost innovation, critical thinking, and employee relationships.
Personalize compensation and benefits
Fair compensation and benefits that meet employee needs can help companies reduce attrition by 56%. This not only improves retention, but also helps attract the best of the best in the industry. One of the companies that have implemented this strategy is Haro Helpers. Along with a standard compensation package, the company also gives employees a range of benefits to choose from. This includes bonuses, streaming services, commission, mental well-being, and more. This helps employees decide what they want when it comes to perks and benefits, which in turn improves satisfaction and retention.
Another aspect in terms of compensation and benefits is paid time off and rewards. Rewarding employees helps keep them motivated as well as valued in the organization. Apple, among the top global companies, offers its employees additional paid time especially during holidays. The simple policy works wonderfully in conveying the message that Apple is working for their employees. Moreover, the company also offers rewards based on the job location and culture. This helps employees feel valued and gives them a sense of belonging.
Recognize and reward employee efforts
Recognition and rewards have a direct effect on employee motivation, 72% of employees would work harder if they felt appreciated in the company. Not only that, recognition also has an impact on retention rates. A survey in 2019 revealed that 63% of employees are less likely to leave the organization if they were recognized. Naturally, this means companies should focus on strategies that not only recognize their workforce, but also reward.
Fortunately, reward programs can be clubbed into the compensation package. TCS, a leading company in India had a retention rate of around 11% in 2019. Much of this success can be attributed to the fact that it invests in its employees. What’s more, TCS offers employees a retention bonus on a yearly basis. This incentivizes loyalty, and may even impact motivation for some. When it comes to recognizing its employees, Infosys has a promotion cycle that happens on a quarterly basis. These promotions double-dip into career growth for employees, while also ensuring engagement regularly. With one of the top places to work at, Infosys has an attrition rate of 20.4%.
Employee retention is among the top concerns of CEOs, but these strategies can enable organizations to better retain their top talent. A proven approach is to create an engaging environment where employees feel a sense of belonging. Research shows that when employees feel a strong sense of belonging in the company, there is a 50% reduced risk of turnover.
Ensuring this level of engagement is something that should be built into the culture, and enforced right from the early stages of recruitment. With Talent500, you can do just that and build engaged teams efficiently. Our AI-powered tools ensure the best fit from a diverse pool of pre-vetted talent. What’s more, our processes ensure 5x faster hiring, which translates to faster deployment of services in a remote setting. To know more about our talent management services and the solutions ready for deployment, request a consultation.
