In the past few years and especially since the COVID-19 pandemic, employee retention has been a problem for businesses. Employee retention plans are the most effective way to encourage employees to remain in their current job, and this article is going to explain what an employee retention plan actually is, and why every business needs one.
What is an employee retention plan?
Put simply, an employee retention plan is a plan that a business comes up with to prevent employees from wanting to leave. There are numerous reasons why people leave their jobs – from money, to poor management, or lack of upwards mobility. Thus, an employee retention plan attempts to mitigate the risk of such feelings from brewing. This might consist of utilising employee rewards, increasing take home pay, or implementing things like wellbeing schemes and more flexible working practices.
Why does every business need an employee retention plan?
Employee retention is the main thing that promotes the overall success of your business. The time and cost that comes with hiring and training new employees are significant, and can combine to have a negative overall impact on the outcomes of your business. Since higher turnover brings more problems, it’s important to have a plan in place to prevent this and ensure employee retention rates are as high as possible.
Some examples of employee retention tactics:
Benefits and rewards: One way to attract top employees is to offer them a competitive salary and basic benefits like health insurance, wellness programs, and so on. However, this isn’t always enough to retain them. Rewarding employees based on their performance will show that you recognise their efforts and the value they bring, encouraging them to stay.
Positive working environment: When you are setting up your office, remember that it will be a kind of second home to the majority of employees. You don’t need to offer free snacks and lunches, but perks like these go a long way towards improving office life and ensuring wellbeing.
Alongside this, team building activities will support working relationships within the office which will be a key factor in employees deciding to stay in their current position or leave.
Offer advancement opportunities: Offering learning opportunities will be a huge motivator for employee retention. When employees have the chance to gain new knowledge, they will want to stick around and make the most of these benefits. An additional benefit is that it will mix up existing routines and motivate employees to develop within their roles. For example, as an employee, you could advance your career in psychology by getting a master’s in psychology paid for by your employer. However, don’t be surprised if employers expect you to stay on for a year after you graduate, so they can get their money’s worth.
Clear communication: When you make the effort to share information with your employees – especially important information about pay-scheme- make sure that you explain everything clearly. Often, employees get confused with messages and expectations that aren’t clear, and struggle to respond in the correct way. You might want to create policy documents and hand them around to members of staff, for example, to avoid creating these types of issues.
As you can see above, employee retention plans are essential for saving time, money, and stress. At your first opportunity, take the time to create an effective plan to help you make the most of your employees.