How to Increase Employee Retention
In order to increase employee retention, HR professionals must first understand the causes of employee attrition. Two of the most common factors triggering employee resignation are dissatisfaction with their direct manager and a lack of ownership in their role. For those who work in small companies, disagreements with a direct supervisor can feel magnified, whereas in larger companies that are more complex, there may be an opportunity for unhappy employees to transfer into another department. Therefore, enhancing employee retention requires continual assessment of the organizational morale and employee satisfaction. Emphasizing employee development at the manager level and transferring those skills into the workforce may help foster inspiring leadership roles and positive working relationships.
Building Your Retention Strategy
In building your retention strategy, consider these potential hazards:
- Workload: Employee engagement tends to decrease in understaffed offices, especially in cases where layoffs or downsizing force survivors to “pick up the slack.”
- Communication: Poor communication or a lack of two-way communication may result in employees believing that management does not care about its employees or isn’t fully transparent.
- Career Path: If your organization has not made it a priority to coach and develop existing employees and provide them with a clear understanding of the growth potential each may achieve, your employees may be left feeling there is no room for upward mobility.
- Salaries: While not the top retention driver cited by employees, salary does play a role in workforce satisfaction and ultimately, if they decided to stay or go.
- Lack of Impact on Results: Distance or a significant disconnect between an employee’s tasks and business effects or results can affect an employee’s overall outlook on the organization and his or her loyalty to the company.
If you believe that money is the only motivator to increase employee retention or satisfaction, you may be missing the full picture. Your team wants to be inspired. Your organization’s reputation and vision also play key roles, benefiting your retention strategy as much as your marketing strategy.
Talent development as a means the ability to engage, align, coach, develop and retain. Instill confidence in your management today, help them build relationships with your workforce for tomorrow and create a stronger company for your future.
Source: How to Improve Employee Retention, Inc. Magazine, By Josh Spiro, Apr 7, 2010, viewed November 14, 2011 at http://www.inc.com/guides/2010/04/employee-retention.html