How to Improve Employee Retention in 2023
The employment situation in America over the past three years has been a wild ride.
The Bureau of Labor Statistics (BLS) reports that 4 million people quit their jobs in October 2022, leaving 10.3 million jobs unfilled. The BLS also says that the employment rate is just 3.7% meaning only 6 million Americans are currently looking for work.
The writing on the wall is clear for employers: You need to have a plan of action to keep the talent that makes up your workforce.
Why is Retention Important?
There are many reasons why retaining employees should be a priority, but one of the biggest is that replacing an employee you failed to retain can cost thousands of dollars. The Society for Human Resource Management (SHRM) estimates that it can cost up to 9 months of an employee’s salary to replace them should they leave.
High employee turnover also has a negative impact on team morale. When it comes to morale, it’s easy to get stuck in a vicious cycle of people leaving because of low morale and people leaving causing low morale. If employees are constantly coming and going, engaging with the team becomes all the more difficult, and those left behind can get stuck in a mindset of “Don’t get too attached.”
Finally, losing employees affects productivity and can often bring it to a crashing halt. With constant interruptions to the workplace to either cover for missing employees or train new ones coming in, a team never gets a chance to find its rhythm and become a productive team.
How You Can Retain Your Employees
If you’re concerned about retaining your employees (and you should be!), there are simple policies and procedures you can embed in the workplace that will help incentivize people to stay.
- Invest in your employees’ careers.
According to a LinkedIn survey, an astounding 94% of employees reported that they would stay with a company if that company invested in their professional development. This investment can be anything from offering mentoring programs for employees looking to move up the ladder to offering financial assistance for continuing education.
- Improve your onboarding process.
If you find that you’re losing employees after just a few months on the job, it might be time to review how you onboard employees. Employees leaving in a short time frame often indicate that they hadn’t been adequately oriented to their role or your company’s culture. Improving the first impression your company gives to new employees could inspire many of them to stay for the long haul.
- Keep your wages and benefits competitive.
You could have the best company with a great culture and team to work with. But at the end of the day, people are there to earn a living. If you want to attract and keep the top talent in your industry, you need to compensate them for their position in ways that are better than the competition.
- Offer flexible work arrangements when possible.
While remote work options were gaining popularity before the pandemic, working from home has now become the preferred method for many people. According to a survey by FlexJobs, 65% of employees surveyed wanted to work remotely full-time, while 32% chose a hybrid of in-office time and remote work. When possible, giving employees flexible options can help keep employees engaged and happy in their work.
- Develop a recognition program.
It’s human nature to want to be praised, especially when someone goes above and beyond in their work. Finding ways to recognize employees could incentivize them to stay with your company because they feel valued for their role. The opposite is true, too. According to a Pew Survey, employees named feeling disrespected by their managers as one of the primary reasons they quit their job.
Retaining employees is vital for your company’s success in today’s job market. You can create a thriving workplace with a positive culture that inspires people to stay with just a few simple steps.
Are you still searching for the best talent to fill your open positions? Epic Placements has hundreds of pre-vetted candidates waiting to sign that contract. Contact us today to find just who you’re looking for.
Looking to find the kind of company that will make you want to stay? We can help with that, too. Apply today to be included in our talent pool for our clients.