Are you making a difference where you work? Do you feel valued in your organization? Are you treated fairly? If you answered ‘no’, or ‘maybe,’ or ‘I don’t know’ then you might be one of the millions of people just waiting for (or actively pursuing) your next job.
For business owners, the Great Resignation has presented a difficult challenge: how do we retain our workforce? It hurts to lose a great employee and can leave you scrambling to cover their workload and find a replacement.
To understand the solution to how we retain employees, we need to first understand why they leave in the first place. One of the most common reasons? The job and environment makes it too stressful to stay. Compensation and benefits are one of the most common drivers of turnover. Many employees are looking for more than a job – if you can’t provide mentoring and professional development, the best employees will go where they can find it.
Why is this so important? Retention directly affects the company’s bottom line. It can take anywhere from two to six months for a new employee to become productive. Even after that time period, as employees gain more tenure, they typically become more and more productive.
So, how do we start to turn the Great Resignation into the Great Retention? Retention starts with attention to people. Employees disengage for four main reasons: (1) the job, (2) their manager, (3) the organization, and (4) the team. Let’s address these challenges one by one.
First, we can start by designing jobs with growth opportunities. Begin with a clear job description and include the learning and development that can be expected as part of the position. It is critically important to understand the market rate for each of your positions. Salaries have escalated extremely quickly over the past several months, and if you don’t know what your competition is paying, you can’t attract the best talent.
Next, develop great leaders in your management team. In a recent study, confidence was listed as the most valued trait in a manager, followed by effective communication skills. Leading by example goes a long way to improve morale. Scheduling regular one-on-one conversations is important to ensure that employees have regular check-ins with their manager and a voice in the organization.
Employees have more choice than ever, so it’s important to communicate not just what your company does, but what your company believes in. It helps if employees understand how their jobs play into a larger goal or mission. Provide clear and early communication about your culture and values. Regularly take the “temperature” of your team by conducting engagement surveys to know how satisfied your team is. Do they need more flexibility in their schedules? Is remote or hybrid work an option?
Finally, employees who are connected to their teammates are more likely to stay with their company. Your onboarding can include formal and informal ways to meet coworkers and become embedded in the organization. Team retreats and events help your employees bond.
When employees leave, ask them why in an exit interview. Then create strategies to address any issues raised. People drive your business, and unhappy people can grind it to a halt. These practical and impactful retention strategies will help you take action.