Improve staff retention this year with these innovative solutions
Finding and training new talent is a hefty investment.
Studies show that replacing an employee can range from one-half to two times the employee's annual salary. But as well as a monetary cost, it takes time and resources to bring new hires up to speed.
But what if there was a smarter way?
What if, instead of spending big on training new staff, you could invest in keeping your current team happy and committed, ultimately slashing long-term costs?
In this blog, we look at some innovative ways you can improve staff retention. But first, let’s make sure we have the definition of staff retention right, before looking at some of the benefits.
What is staff retention?
Simply put, staff retention refers to the ability of an organisation to hold on to its employees. Improving staff retention involves encouraging staff by making their current employment attractive.
It goes beyond merely incentivising individuals to stay with a competitive salary. It involves working to create an environment where employees feel valued and supported in their professional growth.
How to calculate your staff retention rate
Do you know what your staff retention rate is? Use this quick method to work it out.
Retention rate = (number of people employed during the entire period)/(number of people employed at the start of the period) x 100
The ideal employee retention rate varies based on industry and company size. For instance, sectors like retail or entertainment often experience higher employee turnover.
Generally, however, most industries consider a retention rate of 85-90% or higher favourable.
Benefits of employee retention
So, what are some of the benefits of retaining employees? We’ve already mentioned one - the cost savings involved with training new staff, but let’s look at some others in more detail.
- Consistency and expertise: Retaining experienced staff ensures a stable and knowledgeable workforce, reducing the need for frequent training and onboarding.
- Cost savings: High turnover comes with recruitment and training expenses. Staff retention helps cut down on these costs, promoting financial stability for businesses.
- Boosts morale: A stable work environment fosters a positive culture, boosting morale among employees and contributing to a more cohesive and collaborative team.
- Customer satisfaction: Consistent, experienced staff often leads to better customer service. Familiar faces build trust and rapport with clients, enhancing overall satisfaction.
- Increased productivity: Retained employees are more likely to be engaged and invested in their roles, leading to increased productivity and efficiency within the organisation.
- Institutional knowledge: Long-term employees possess valuable institutional knowledge. Retaining them ensures that critical information and skills stay within the organisation.
- Enhanced team dynamics: A stable team allows for the development of strong interpersonal relationships, improving communication and collaboration among team members.
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Staff retention solutions
Having seen the importance of staff retention, here are 5 ways to keep your employees happy and motivated.
1. Professional development opportunities
According to McKinsey & Company, lack of career development opportunities and advancement was the top reason employees left jobs in 2022.
Provide ongoing training and development programmes to help employees enhance their skills and grow within the company.
This not only improves job satisfaction but also increases their value to the organisation.
2. Craft a competitive benefits package
One effective strategy to improve staff retention is to enhance your benefits package for employees.
This could include health insurance, salary sacrifice schemes, tech benefits and other perks that make your company an attractive place to work.
Employees today are not only looking for a job; they're seeking a holistic work experience.
By offering a comprehensive benefit package, you not only attract top talent but also encourage current employees to stick around for the long haul.
It's an investment that pays off in loyalty and commitment.
3. Recognition and rewards
Recognition is more important than you think.
Employees who believe their employer's recognition strategy aligns with their needs are seven times more likely to engage in their workplace actively.
Acknowledging and rewarding your employees for their hard work and achievements doesn’t have to be complicated. It can be through simple gestures like a retail discount scheme, e-gifting, a cycle-to-work scheme, employee of the month awards, or even performance-based bonuses.
4. Flexible work arrangements
Embrace the changing dynamics of the modern workplace by offering flexible work arrangements.
Whether it's remote work options, compressed workweeks, or flexible hours, providing choices can significantly improve job satisfaction.
These kinds of perks are particularly valuable to employees with caring responsibilities, and can significantly increase the chance that they will stay loyal to you.
5. Wellness initiatives
Next, consider the state of your business’s work culture and environment. No one wants to work in a place that is damaging their wellbeing, so if you haven’t already done so, consider introducing wellness programmes focusing on physical, mental, and emotional health.
There is a whole plethora of factors that go into creating a culture that supports employee wellbeing, so if you’re not sure where to start, download our Workplace Wellness Step-by-Step Guide.
In this guide, you will find a tool to help you audit your current provision, solutions that could fill in the gaps and information on how to implement your strategy.
Unleash the power of employee retention for lasting success
The benefits of employee retention are far-reaching.
By investing in keeping your current staff happy and engaged, you not only save on the high costs associated with training new hires but also cultivate a positive work environment that attracts and retains top talent.
Bravo Benefits can help you achieve a comprehensive benefit package for employees helping you achieve better retention rates by spending time with you and understanding your employees’ needs. Our Employee Benefits Consultants are uniquely positioned to craft a bespoke solution that engages and retains your employees, meaning you can focus on pursuing your business goals.
