Top 5 Factors Affecting Employee Retention

Employee turnover is costly for employers. Everything from the cost of hiring, training and onboarding to the cost of time with unfilled role and impact on morale means every departure has a negative effect on your company. Today, your most talented employees are one LinkedIn message away from another role. Retain your best people by thinking about effective employee engagement strategies.  

1. Compensation

As you might expect, compensation is a key factor affecting retention. Employees react positively to organisations that reward quality work and company loyalty with a good salary. Keep in mind that compensation is not a long-term retention strategy however, even as you increase it during the course of their employment.

2. Personalised Benefits

Even loyal employees’ value personalised benefits more than high pay. According to research from Adobe, employees are willing to leave their current position for a more ideal job, even if it pays less. Rather than just offering higher pay, find out what truly motivates and drives your employees. For many, that’s opportunities for flexible and remote working. For others its greater autonomy and responsibility or particular benefits like health perks.

3. Company Reputation

Employees tend to stick with reputable companies. This includes both industry reputation as well as employer reputation. How well is your company position within its market? Are your products and services regarded as high quality by consumers and others in the industry?  

What is the reputation of your company as an employer? In today’s age of social media, networking and websites like Glassdoor, it doesn’t take long for word to get around about what it’s like to work for your company. Companies with positive employer reputations are much more likely to hire and retain talented staff.

4. Recognition and Rewards

When milestones and targets are achieved, how do you reward and recognise employees? This has a significant effect on retention. The quickest way for an employee to feel undervalued and become disengaged is for their hard work to go unnoticed or unacknowledged. It may seem obviousbut even great managers can let things slip through the cracks.

5. Personal Development

Employment is a two-way relationship. Valuable employees who help grow your business expect opportunities for personal development and growth or else they will look elsewhere for it. Avoid employees walking out the door by giving them responsibility, creating clear pathways to make an achievement and recognising them when they succeed.

Our Employee Engagement Platform Can Help!

Establish a more positive workplace culture and keep your employees engaged with People Listening – a custom workplace engagement platform that helps improve communication, learning and development, team and individual enablement, transition and retention. By knowing how your people feel and where to act, you can drive positive leadership, culture and engagement in your business. 

Get in touch with our team today for employee engagement tips and employee engagement strategies that work. Call us on +61 3 9923 7659 for your demo or contact us online 

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