5 Tips: How to Best Retain Employees
Focusing on retaining employees is essential. When skilled employees resign from their positions, recruiting and onboarding new ones can be very expensive. But how do you keep your employees? Get 5 tips on how to retain employees here.
A fair salary, employee benefits, flexible work hours, and the chance to develop are some important keywords to focus on when discussing retaining employees. But is that enough?
Retaining employees is essential in many ways. One is the economic aspect. It’s expensive to lose an employee who has the know-how about your company that one only gains as time goes by. But it’s also pricy to recruit a new employee and ensure they are correctly onboarded. A study shows that it costs three to four times the job’s salary.
When the Wind Is Taken Out of Your Sails
When an employee leaves the company, it can demotivate the remaining co-workers. This can actually dip productivity because morale declines and the dynamics change.
How do you ensure that your employees stay with your company rather than look for a new job? Read along and get 5 tips, which we elaborate on in the section below the summary.
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SUMMARY: How to Retain Employees
Tip 1: Take the pulse – assess how things are going in day-to-day operations
Tip 2: Employee development – how does each individual wish to develop?
Tip 3: Culture and community – create and support a strong sense of togetherness
Tip 4: Company purpose – remind employees of how they contribute to it
Tip 5: Generational considerations – be aware of different needs
Tip 1: Take the Pulse of the Workplace
When retaining employees, it’s always good to start investigating the status of everyday life in the company. You can assess the workplace by the following initiatives:
- Exit interviews: Find the reason why your employees quit
- Analyze patterns: Are there departments where more employees resign? Identify the cause
- Identify the atmosphere: Ask well-liked employees how about morale among their colleagues
- Get a feeling of the pulse: Use the Pulse Survey from HR-ON Staff to see how employees are doing
- Investigate their needs: Is there anything the employees need that can improve their well-being?
- Put well-being on the agenda: Increase well-being by involving employees with HR-ON’s well-being card (Danish)
Tip 2: How Do Employees Want to Develop?
When discussing a strategy for ensuring employees stay in the workplace, it’s important to integrate employees as much as possible. Remember to involve your colleagues and ask for their suggestions.
Allow employees to make suggestions for:
Development: How and to what extent does each individual wish to develop professionally?
Material things: Are there specific items they miss in their daily work environment that could improve their day-to-day experience? For example, ergonomic tools, hygiene products, soundproof headphones, etc.
Social initiatives: Do you lack time for socializing during the workweek? The social element plays a significant role in our daily lives, so try to listen to employees’ suggestions for improvement in this area
Tip 3: Focus On The Environment, Culture, And Community
Speaking of social initiatives, a strong sense of community in the workplace simply leads to greater motivation in everyday life. And since we spend so many hours of our lives at work, it must provide us with professional and social value.
A good community also enhances employees’ sense of belonging to your company. It fosters greater engagement and, ultimately, productivity. At the same time, it creates a stronger foundation for your employees to be loyal to the company and desire to remain a part of it.
Social initiatives can take many forms, and as mentioned in the section above, it is a good idea to involve your colleagues so they can contribute suggestions on how to enhance the sense of community. This way, individuals take more ownership and have a greater chance of feeling seen and heard.
The co-workers Emilie and Nanna at HR-ON are speaking together. Photo: Jonas Normann
Tip 4: Remind About The Company’s Purpose
A fourth area to focus on when it comes to increasing your employees’ desire to continue working at the company is to remind them of which purpose the company was founded.
The fact that a company develops or works on something that helps others or makes a difference is often a motivating factor for many employees. For example, a study shows that nine out of ten people are willing to earn less money for a more meaningful job.
Emphasize the company’s purpose on relevant occasions and provide concrete examples if you sense a need to clarify how your purpose should be understood in practical terms.
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Tip 5: Involve The Generations In Different Ways
The final tip regarding employee retention is to remember that employees are different. This can be especially evident if your company is diverse and includes multiple generations.
For example, 56% of Gen Z and Millennials are likely to leave jobs that do not bring them satisfaction and happiness. Additionally, job security is less of a concern for younger generations than their older colleagues. Particularly, Gen Z is expected to be more “zapping” in their work lives than older generations.
It is important to engage younger generations by involving them and seeking their input in daily operations. This leads to greater job satisfaction, which is precisely what young people seek in the labor market.
FAQ: How can you best retain employees?
What measures can be taken to retain employees?
You can do several different things to retain employees. Start by assessing how well employees are thriving in your company, and then implement initiatives that enhance well-being and cohesion within the organization.
Why is it important to retain employees?
It is important to retain your employees so they want to stay in their jobs, among other reasons, because recruiting and hiring a new one is costly. Additionally, when an employee leaves a company, it usually results in a dip in motivation and productivity among those who remain.
Is there anything to be aware of when working on employee retention?
Being aware of the differences between generations in the workplace is a good idea. Generations generally have different perspectives on their work lives. For example, Gen Z and Millennials seek a fulfilling job that creates happiness.
How do you ensure that employees develop in a way that encourages them to stay with the company?
Employee development is one of the most important factors when considering why employees stay in their jobs. The opportunity for professional growth is one significant parameter. Ensure this by asking each individual how they wish to develop and in which direction.
