4 minutes read

Why is retaining talent important?

Employee retention leads to sustainability and growth. The time, stress, and cost of hiring and training new employees are significant, and turnover can harm your business outcomes. High employee turnover brings about multiple problems including high recruitment costs, knowledge loss, and low productivity.

The longer an employee stays with your business, the more familiar they are with the business guidelines and procedures thus adjusting better and are more committed to driving business outcomes. Employees can be trained to cover skill gaps with the proper development over time.

How can your business retain good employees?

It is crucial that you consistently hire reliable and motivated employees to build a strong team. There should be employee retention strategies implemented to develop a highly desirable workplace where your employees will want to remain a part of your team for a long time. By implementing a path to career growth, providing premier benefits, celebrating performance, instilling office perks, and paying competitively, small business owners have many options at their disposal to improve retention rates and office morale.

Many employees feel that they don’t have long term careers at their current company whilst others don’t feel engaged in their current jobs. Keeping employees engaged is the key to ensuring that workers not only stay at your company but are more productive and invested in its success.

Recommendation to retain employees

• Positive Company Culture

Having a positive workplace culture is one of the reasons that attracts prospective employees to apply to your business. A study conducted in 2019 showed that salary was the most important aspect in job-offer evaluations followed by company culture.. Creating a unique or positive image of a company will help attract the right like-minded talent from the start.

• Offer a Flexible Schedule

Offering an employee, the flexibility to work from home or a flexible schedule allows employees to manage and promote work and life balance. 

• Equal treatment 

If a company wants to attract and retain the best employees, management should treat everyone equally. When an employee knows that your business cares about them, they may be more inclined to work towards business goals.

• Promote Open Communication and Employee Involvement

Communication must be the critical foundation for other employee engagement strategies. Management should encourage employees to speak out and provide suggestions to improve the workplace and its processes. 

Employees want to feel they’re an integral part of your business and that their suggestions matter in your business future plans. Keep your employees aware and up to date with the latest developments at your company.

• An upward career growth

Top employees are looking for continued career growth. It is best to guide individuals through the career path based on the skills and strengths of the employees. Every employee needs to know where their job is heading as career progression can provide a sense of security. 

• Employee Recognition

A rewards program is an exceptional retention strategy to recognise staff achievements, focusing on fairness and consistent delivery. Employee motivation and loyalty grows when their achievements are recognised and valued.

• Remuneration and benefits

Offer employees the appropriate renumeration and benefits package. Sometimes, a pay increase can keep a valued staff who is a high performer and is justified compared to hiring a new hire. Paying above the market rate or having competitive renumeration and benefits contribute to retaining quality staff.

Why do employees leave? 

There are many reasons why employees leave the business. Studies have shown that employees follow four primary paths to turnover, each of which has different implications for your business:

• Employee dissatisfaction. Solve this issue by observing workplace attitudes and identifying problems causing turnover.
• Better alternatives. Keep your business competitive with regards to rewards, developmental opportunities and workplace standards and always be prepared to settle external offers for quality employees.
• A planned change. Some employees may be planning to leave due to crucial changes in their life. Nevertheless, employees decisions may be swayed by increasing benefits correlated to tenure or in response to individual needs.
• A negative experience. The common negative experiences that drive the employee to quit team differences, include being passed over for a promotion, harassment, bullying, and unfair treatment. There should be support mechanisms and risk assessments in place and training to avoid extensive negative interactions (e.g., conflict resolution procedures, alternative work schedules or employee assistance programs).

Why do employees stay?

Studies have suggested that job embeddedness positively influences employee retention. As their job offers social and community relationships, leaving a job would require breaking the web of relationships, security and sense of belonging. Thus, the more attached employees are to your business, the more likely they will stay. 

If you need assistance reviewing all your business attraction and retention strategies, please contact us at Catalyst Central:support@catalystcentral.com.au