How to improve employee retention
Taking action
The first two steps to take when developing an employee retention strategy are to find out:
1. Why employees are leaving your organisation
2. What employee turnover is costing your company
Data from exit interviews can be used to develop a costed retention strategy that focuses on particular causes of turnover in your organisation.
It is worth considering the following elements, all of which have been shown to play a positive role in improving retention:
Make line managers accountable – for staff turnover in their teams. Reward managers whose record at keeping people is good by including the subject in appraisals. Train line managers in people management and development skills before appointing or promoting them. Offer re-training opportunities to existing managers who have a poor record at keeping their staff.
Consult employees – ensure wherever possible that employees have a ‘voice’ through consultative bodies, regular appraisals, attitude surveys and grievance systems. This will provide dissatisfied employees with a number of mechanisms to sort out problems before resigning. Where there is no opportunity to voice dissatisfaction, resigning is the only option.
Job previews – give prospective employees a ‘realistic job preview’ at the recruitment stage. Take care not to raise expectations only to dash them later. Advances in technology are increasingly presenting employers with opportunities to familiarise potential candidates with the organisation before committing themselves to joining the organisation.
Career development and progression – maximise opportunities for individual employees to develop their skills and move on in their careers. Where promotions are not feasible, look for sideways moves that vary experience and make the work more interesting.
Avoid the development of a culture of ‘presenteeism’ – where people feel obliged to work longer hours than are necessary simply to impress management. Evaluation of individual commitment should be based on results achieved and not on hours put in.
Job security – provide as much job security as possible. Employees who are made to feel that their jobs are precarious may put a great deal of effort in to impress, but they are also likely to be looking out for more secure employment at the same time. Security and stability are greatly valued by most employees.
Treat people fairly – never discriminate against employees. A perception of unfairness, whatever the reality when seen from a management point of view, is a major cause of voluntary resignations. While the overall level of pay is unlikely to play a major role unless it is way below the market rate, perceived unfairness in the distribution of rewards is very likely to lead to resignations.
Be flexible – wherever possible accommodate individual preferences on working hours and times. Where people are forced to work hours that do not suit their domestic responsibilities they will invariably be looking for another job which can offer such hours.
Defend your organisation – against penetration by headhunters and others seeking to poach your staff. Keep internal e-mail addresses confidential, refuse to do business with agents who have poached your staff, and enter into pacts with other employers not to poach one another’s’ staff.
