Employee retention is a tricky thing. Average employees now leave after 3.8 years and are expected to cycle through jobs more often than the previous generation. So why bother trying to retain them at all?
Perhaps another way of looking at it is to know why they leave in first place. The often-stated reasons are not enough pay, not enough recognition, not enough connection to the big picture, and not getting along with management.
From here, you can engineer your company’s employee retention strategies.
Not Enough Pay
This can be confusing. After all, employees accept their job offers and know exactly what they’ll be paid.
“Not enough pay” can be literal or have other meanings:
- Not enough benefits
- Not enough time-off
- Job description not matching what they actually do (misled in the interview process)
As far as pay and benefits go, you can only control them based on your company’s revenue. But you can control how the employment is presented to the prospective employees, so they don’t end up feeling like they’re doing more than what they were hired to do.
Not Enough Recognition
Employer-employee relationship shouldn’t be strictly transactional where people involved trade work done for money. Humans thrive on other factors, namely motivation. And motivation can come from recognizing them for their good work, in a timely and specific manner. When you let your employees know their contribution matters, they’re more likely to stick around.
Personalized recognition works better than a generic one. FineAwards.com helps you recognize your employees in one way by creating custom acrylic, crystal, and glass awards.
Not Enough Connection to the Big Picture
No matter how big a company is, no one likes to feel like a mere cog in the wheel. Low-rank employees need to feel connected to a company’s vision and goals in order to feel they’re contributing.
Not Getting Along with Management
“People don’t quit their jobs. They quit their managers.”
This has become a famous adage in human resources. In fact, more and more employees cite manages as their reason for quitting rather than pay. When managers allow for a negative company culture or don’t communicate with their employees on a personal level, retention becomes all but impossible.
Steve Miranda, Managing Director of the Center for Advanced Human Resources Studies, estimates that up to 80% of employee turnover is due to ineffective management. Not every good employee makes a good manager. When you pick and train managers, it’s important to look for soft skills in addition to technical aspects, namely people skills.
Corporate culture is more transparent than ever with websites like Glassdoor.com where people review their companies. As an employer, you can’t keep everyone happy, nor is it your job to do so.
Even with the best retention strategies, good employees will leave at some point if they outgrow your company or want to try something else. At the least, when they do leave, they’ll only have kind words to say about your company, which can bring in more talented individuals.