How should companies increase employee retention?
Employee retention is the key goal before companies these days.
Retention is not just about retaining the employees in the company by increasing their salaries and perks. But its important to check that with time their morale has improved and as a result, they are contributing more.
For this purpose, it’s better to carry out some activities. Such activities include recognition of employees and creating an atmosphere of mutual respect in the company.
Employee retention can be successfully done by training them. When good training is given to them, they have better growth opportunities in the company and are unlikely to leave.
There are several reasons why employees leave organisations:
- Bad training– It has been estimated that almost forty percent of workers in the US move from their jobs because of lack of training. This holds correct for people born between 1981 and 1996 who want more knowledge to get ahead in this technical world. The millennials are young and people are bound to look for opportunities at that age.In a survey done by Udemy in 2018, there were 2 reasons quoted by millennials for sticking to a job. The first reason was health insurance quoted by 48% of millennials and the second reason was good training quoted by 42%. Good training is important because it ensures that millennials don’t get replaced by others in the same jobs. They get good job security when they get trained for a position and can expect growth. This training can be related to software or soft skills.
- No growth opportunities– Employees can also leave jobs once they have training but it’s not related to growth in the company.
There should be growth opportunities in the company. As per findings, employees with excellent potential tend to leave companies for better opportunities
- Company environment-The company environment also matters. The companies must have good communication, respect for each other and good leadership. In a survey, it was found that 47% of workers think company culture is a prominent reason for them leaving the job.
- Antagonistic managers– Managers also play an important role in the wellbeing of the employees. Most of the employees leave their jobs because of oppressive managers. Facing oppression every day leads to low self-esteem.
- Facing stress-When employees have to work for a longer number of hours than their scheduled time, they face stress. It’s not easy to face stress. A manifestation of stress is when you come home from work and are still thinking about the job. You also don’t feel like doing anything in your spare time due to stress.
So, how can companies stop employees from leaving jobs? Employees must be trained. Training is necessary when employees are to be trained for a different set of roles than currently performed by them. American Management Association said in a survey that some companies don’t have succession planning. Succession plans are important so that employees know that one day they will be at a new position with a higher salary.
There in comes training where non–managerial employees are trained to take managerial roles.
Also, employees want on-the-job training as the most necessary factor when they join a job. They also want to be informed about company policies when they start working in a company.
Other steps followed by a company to stop employee attrition are:
- Work-life balance
- Good communication among seniors and juniors
- Good training for managers
- Allows employees to train themselves
- Allowing flexible work schedules
- Make sure employees learn about stress management through deep breathing exercises
These steps can ensure that employee attrition can be reduced and their retention can be enhanced.