Main drivers for employee retention?

 

 

 According to Maggie Blehar (July 4,2023),5 main  drivers of Employee Retention are,

• Learning and development

Companies who engage in employee learning and development opportunities enjoy 24% greater profit margins, while another survey indicated that 76% of employees are eager for growth chances. Despite the potential financial rewards, there is still a significant gap between what employees want and what firms offer.

Prioritizing Learning and Development (L&D) initiatives frequently necessitates a cultural shift throughout the business. However, learning and development does not have to be limited to training films and educational possibilities. Todd Tauber, SVP of Strategy at Degreed, a learning and upskilling platform, reminds employers that daily learning is as vital. What exactly does it mean to learn every day? Reading, viewing videos, listening to podcasts, networking with peers, and other everyday activities all contribute to the acquisition of skills and information.

Organizations must provide employees with the opportunity and time to participate in many types of learning and development programs. If you can provide your workers with opportunities to learn, grow, and improve their talents, they will be more involved in your firm and willing to remain and make a good effect. 

• Career Pathing

According to SHRM, 49% of employees want their company to contribute to their career growth, and they are more likely to stay on the job if they think their employers are making good use of their talents and abilities. If you cannot assist your workers imagine themselves working for your firm one, two, five, or even 10 years from now, you will undoubtedly lose them to another organization.

To keep this talent, you must provide clear career development options that reveal an employee's future in your firm. Offering career pathing possibilities allows you to: 

• Equip employees with visibility and clarity on their growth at your company

• Showcase multiple internal career paths and the skills required to get there

• Proactively develop talent to realize their potential and meet your business's evolving needs

• Make it easier for employees to progress in their career paths and gain new skills through personalized learning and development courses from your LMS or user-generated content

A great way to implement or enhance career pathing at your company is to invest in AI-powered technology. AI can act as a recommendation engine to help employees move closer to their career aspirations by:

• Matching candidates to roles they may be interested in using fit-score technology

• Finding skills deficits based on employee information and recommending L&D programs to close those gaps

• Offering gigs, or short-term projects, in different departments that provide a hands-on learning experience   
  

• Mentorship

Employees want to be acknowledged and respected not only for the work they perform, but also for who they are. Connecting workers with seasoned mentors is an excellent strategy to improve retention. A mentor fosters long-term and meaningful connections, and they are an excellent resource for linking employees to L&D programs, Employee Resource Groups (ERGs), employment, and other opportunities.

If you don't already have a mentoring program, or if your current one needs some tweaking, using AI-powered technology to connect best-fit mentors and mentees can help them develop and progress in the workplace.

Only 26% of executives say that employee engagement and connection is a very significant component of what they think about, plan, and accomplish every day. 

• Gigs

Internal jobs, or short-term initiatives, increase employee retention by immediately upskilling, reskilling, and engaging people on a large scale. When you can provide jobs to your workers, you ensure that your teams learn the skills they need to flourish and adapt, while also embracing talent agility and mobilizing individuals to take on crucial tasks.

Gigs provide employees a range of opportunities for skill development, autonomy, flexibility, recognition, cooperation, networking, and more. Giving workers an entrepreneurial perspective via jobs improves their ingenuity, creativity, and problem-solving abilities, which benefits both the person and the firm. Including relevant employment in an employee's individualized career path is an excellent method to push them to improve their abilities. Employees who feel empowered in this way are more likely to remain engaged.

An Employee Resource Group (ERG) is a voluntary, generally employee-led group that aims to foster connectedness, diversity, and inclusion within the firm. ERGs are an excellent technique to increase employee retention for a variety of reasons: 

• Sense of belonging

ERGs foster a feeling of belonging and community in a business by bringing together individuals with similar backgrounds, experiences, or interests. This creates a friendly and inclusive work atmosphere in which people feel appreciated and connected. When employees have a strong feeling of belonging, they are more inclined to stay with the company.

• Networking opportunities: 

ERGs provide networking opportunities for workers from various departments or levels, allowing them to form contacts, broaden their professional networks, and/or participate in mentorship programs. Connecting with colleagues who have similar experiences or interests makes employees feel more engaged and connected to the business, boosting their chances of remaining.

• Career & leadership development: 

ERGs frequently provide possibilities for professional growth and progress, as well as the possibility to serve on the ERG's board. They may provide workshops, training sessions, and access to industry events. ERGs demonstrate their dedication to success by investing in the growth and development of their staff. This assistance can lead to higher work satisfaction and loyalty, lowering the chance of employees looking elsewhere.

• Diverse perspectives

ERGs celebrate and encourage diversity and inclusion. ERGs help to foster a sense of belonging in the workplace by giving a forum for diverse opinions. This type of workplace encourages innovation, creativity, and cooperation, and employees are more inclined to stay with a business that values and appreciates their unique contributions. 

As stated by,Caitlin Weiser(February 2,2024),business is more at risk for employee turnover if you are unaware of how your benefits offerings compare to the current market. Below are five specific factors you can provide in addition to compensation and medical benefits to drive employee retention. 

1.Work Life Balance

One of the most significant causes of employee turnover is a lack of work-life balance, and people are now actively seeking chances that will allow them to flourish professionally without jeopardizing their personal lives. While the transition to remote work highlighted the importance of work-life balance, a lack thereof has always resulted in employee churn. If your firm monitors workers' "active" online status, expects them to work more than 40 hours per week, or needs on-call availability at night and on weekends, you are more likely to have burnout-related attrition. Organizations that promote work-life balance by providing flexible work schedules, remote working opportunities, and extensive paid time off policies report greater levels of employee happiness, engagement, and retention.

2.Workplace Culture

"The Great Resignation" was the outcome of employees who had become burnt out due to workplace toxicity. staff are seeking for a workplace that promotes collaboration, diversity, and creativity more than ever before, therefore your organization's culture is critical to keeping staff and recruiting prospective hiring. Creating core principles and implementing them to influence decision-making throughout the firm is the most effective strategy to foster a healthy workplace culture. Employees are more satisfied at work when they are aligned with their company's fundamental values and see those values represented in the day-to-day activities and business decisions of teammates and executives. Organizations with a values-driven workplace culture have lower turnover because they prioritize the employee experience.

3.Effective Leadership

Leadership plays an important role when it comes to employee retention, and it is important for the leaders in your organization to always lead by example. Employees will quickly feel disconnected from your organization if leadership is following a different set of rules than the rest of the workforce, which makes it imperative for leadership to adhere to the same expectations they set for employees. If employees are required to follow a hybrid work schedule, your leaders should align their schedules to match. For remote companies, leaders should participate in non-work-related communication channels and ensure they are meeting regularly with their direct reports. It is the job of leadership to connect with employees on both a personal and professional level to show employees they are valued members of your organization. Effective leaders not only drive the business forward but inspire commitment from their workforce by creating a work environment where employees feel appreciated and motivated to stay.

4.Flexibility and support

While the capacity to adjust to workers' changing requirements is critical for retention, flexibility is not one-size-fits-all. Consider what level of assistance and flexibility your company can provide, and if it will be sustainable as your firm grows. It's fine if you don't want to commit to going completely remote, or if remote work isn't feasible for the task you perform. Hybrid work is becoming a common solution among many firms since it allows workers to work from home while still encouraging in-office cooperation. Flexible scheduling is another option to meet the particular demands of your workforce by giving employees control over when they complete their job. Instead of employees use PTO for  a doctor’s appointment or missing out on school pickup due to regular office hours, flexible scheduling lets employees step away from work without penalty. Placing trust in your employees by providing the flexibility to manage their own schedules promotes retention by reinforcing your organization’s commitment to their well-being both in and outside of work.

5.Development Opportunities

Employees want to be acknowledged and rewarded for their efforts, and they will rapidly become dissatisfied in the workplace if there are no clear avenues for advancement and development. Even with frequent salary increases, a person is more inclined to seek other job options if they feel stuck in their current position. If you want to improve employee retention, provide opportunities for professional growth. First, clearly establish career ladders for each functional area of your business, and teach managers on how to help their teams progress through goal setting and performance management. Before going to market for an unfilled position, assess your present workforce's abilities to see if there are any opportunities for internal advancement.Every time you promote an individual, you implicitly communicate that progress is possible inside your firm. Furthermore, it is critical to provide staff with a diversity of learning opportunities because promotions do not occur on a regular basis. In-house training classes, mentorship programs, and reimbursement for professional development opportunities are all excellent strategies to encourage continual learning and keep people interested and pleased in your firm.

As such it can conclude that,Employee retention is driven by five key factors: excellent leadership, frequent feedback, including recognition, opportunity for growth, competitive remuneration packages, and a solid work/life balance. For retention tactics to be effective, they must be designed with these five drivers in mind.

 

References

Blehar M.(July 4,2023),What are the 5 Main Drivers of Employee Retention?[Online], Available at :https://www.phenom.com/blog/five-main-drivers-employee-retention[Accessed on 7th April 24]

Weiser C.(February 2,2024),Going Beyond the Paycheck -The True Drivers of Employee Retention[Online], Available at :https://redcloverhr.com/true-drivers-of-employee-retention/[Accessed on 7th April 24]