Creating an Employee Retention Plan to Lower Turnover

Posted by April

May 4, 2015 3:30:00 PM

Employee Retention PlanWhy is it that some companies face higher turnover rates than others? No managers or leaders of companies get excited about a high turnover rate, and for good reason.  According to the Wall Street Journal, “experts estimate it costs upwards of twice an employee’s salary to find and traina replacement.” So what are reasons that cause high turnover and how can companies create an employee retention plan that works?

High turnover, especially for Gen Y workers, can be contributed to a lack of opportunities, poor compensation, and the lack of a challenge in their work. Real satisfaction comes from feeling valued and appreciated, interesting work that varies, to feel like they’re making a positive contribution to the community, a sense of achievement, and learning and development opportunities. 

Especially with so much focus now on workplace culture, open communication, and workplace relationships, the aforementioned are quite important to an employee retention plan.

In order to deter employees from leaving and keeping them satisfied in their position, here are a few things to consider:

  • Be selective when hiring. Not only do you want the best resume and credentials on your team, you also want to hire someone who will fit with the culture and the team dynamic already in place in the company. Sure a person might have the right credentials, but if they’re not willing to understand and work with the others on the team, then their presence could be detrimental.
  • Create an inviting work environment and culture. Employees will produce the most and be the best when they feel safe in a company. Make sure you’re putting your people first and make the culture personal and authentic.
  • Offer training and career development opportunities. When you give employees the chance to enhance their knowledge and skills, they see that the company cares about their development. It increases their knowledge when working and brings new perspective and ideas back to the office that can be used to increase company productivity.
  • Listen to your employees. Simple and easy, yet very valuable. Think about conducting stay interviews to find out why employees stay with the company and what benefits they like the most. You could also ask what it would take them to leave the company as well, as to deter that from happening. These results will definitely help with employee retention.
  • Give recognition to employees on their great accomplishments. Feeling valued and knowing that supervisors see one’s accomplishments is a great feeling. You can give recognition through a simple ‘thank you’ or a note. Companies can offer prizes too. It’s all a matter of what your particular company culture is like in terms of how you want to give recognition to employees.

Among others, a competitive benefits package is always a great way to retain employees. If they aren’t getting enough compensation, chances are they won’t stick around for long. Another is to have quarterly or mid-year reviews. This offers employees and managers to discuss goal setting and how to accomplish those goals. Just remember, this is a discussion not a lecture.

Don’t let high turnover wreck your company. It costs a lot and lowers the knowledge base within the company, which decrease performance and morale. Use the previously mentioned ideas to create an employee retention plan that works for your company and its culture. Use these simple, yet effective tips and your company will begin to see turnover rates decrease over time, all while saving the company money, increasing performance, and boosting morale.

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Recruiting Strategy, Talent Acquisition

Topics: Employee Recruitment and Retention