The problem faced by most organisations is the inability to retain quality talent and reduce the employee turnover to below an industry average.
When new employees join, they are 100 per cent committed. But, as studies indicate, they tend to form their initial impressions and make decisions about their commitment within the honeymoon period of the first 3-6 months. Who is at fault?
It’s common for employees to go through this initial period of excitement and motivation. However, as the realities of the job sets in, their commitment could dwindle because of many factors including workload, job fit, relationship with colleagues and personal circumstances.
How can employers inspire employees to stay in an organization? Here are nine suggestions for making 9 out of 10 new employees to stay longer.
Create clear opportunity for career progress
Employees are more likely to stay in an organisation that offers them opportunities for professional development and career advancement. Offer training, skill building, and promotions. According to a study by Gallup, 87 per cent of millennials and Gen-Z consider career development opportunities when choosing a job or staying with an organisation.
Redesign jobs to be meaningful
Employees want to feel that their work is meaningful and makes a difference. When they are engaged in challenging work that aligns with their skills and interests, they are more likely to stay with the company. Research by Deloitte found 91 per cent who found their work meaningful reported higher job satisfaction, and 90 per cent intended to stay with their current employer for at least another year.
Build a positive company culture
A work environment where employees feel valued and included is crucial for their retention. When they feel that they are part of a positive organisational culture that promotes fairness, they are more likely to stay put. According to a study by SHRM, 89 per cent of employees who reported being satisfied with their organisation’s culture plan on to stay long-term.
Revamp the recognition program
Everyone, not just employees, wants to feel appreciated for his or her contributions. Organizations that have a good program of rewarding their employees are more likely to retain them. According to Glassdoor, 53 per cent would stay with their current employer longer if they felt more appreciation from their bosses.
Encourage more work-life balance
Achieving a healthy work-life balance is important for employees’ wellbeing and job satisfaction. Organisations that offer flexible work arrangements are more likely to retain their new employees. A study by FlexJobs found 82 per cent of employees believe that having flexible work options would make them more loyal to their employer.
Implement competitive compensation and benefits
Compensation and benefits play a crucial role in retaining employees at all levels. A Payscale survey found 93 per cent of employees consider fair pay and benefits as important factors in their decision to stay with an organisation.
Invest to build strong leadership
Employees want to be led by leaders who are competent, supportive, and inspiring. Organisations that invest in developing strong leaders and managers are more likely to have a better retention rate. Gallup found that employees who feel that their managers care about their development are more likely to stay longer.
Induce work-life integration
Organisations that offer opportunities for employees to integrate their work with their personal lives, such as outcome-driven work practices or flexible scheduling, are more likely to retain new employees longer. Employees who have control over when and where they work are more likely to stay with their organisations, according to the ‘Harvard Business Review’.
Shift more power to employees
Employers who empower their employees to make decisions, contribute their ideas, and take ownership of their work are more likely to retain them. A Gartner finding suggested 72 per cent of employees who feel empowered to make decisions are more likely to stay longer with their companies.