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10 Reasons Your Employee Retention Rate is High
Companies with a high employee retention rate often have policies and practices that help retain workers, even when the industry lags.
Congratulations! If your business has no problems retaining employees, then you’re in an enviable position. So what makes you different than other organizations in the U.S., where the average employee turnover in some industries exceeds 25%?
1. You know your industry.
You keep up with everything happening in your industry so you can stay competitive in the marketplace, and your employee retention rate shows. Why? Because stable employment is at the top of the list of employee wants. But you go beyond understanding industry advancements -- you also know which companies are growing and hiring, and you have a retention plan that keeps your own staff in place.
2. You provide competitive employee benefits.
What else is on your employees’ wish lists? Just after job security comes benefits (in fact, 96% of Millennials say they’d leave a job simply for better benefits). You ensure your company’s benefits are competitive within your industry and your market. But you don’t break the bank doing this -- even if you’re a small company, you’ve found a way to keep benefits high and costs low.
3. You adapt with employment trends.
You know that a 7:00a - 3:00p shift might not be as appealing to working parents as flex time. In a 2016 study by Adobe, more than 30% of U.S. office workers said they’d leave a job for more flexibility. It’s just one of the trends shaping today’s workforce that has a significant impact on employee retention.
4. You train your managers.
You’ve read the stats -- in 2015, a Gallup poll found that 50% of workers in the U.S. admitted to leaving a job because of their manager, and only 12% of workers said their managers helped them set goals. You conduct management training for your team so leaders know labor laws, connect better with employees, and are adept at handling sticky situations when they arise.
5. You outsource your HR to a PEO.
Your PEO handles HR for you. You made this choice as a small- or medium-sized business in part because companies that work with PEOs have turnover rates that are 10-14% lower than companies that don’t. Working with a PEO also ensures your payroll is accurate, on time and in compliance, and you get full service HR to stay up-to-date on employment law and workplace trends. All of this has a positive impact on your employee retention efforts.
6. You have a set plan for onboarding new hires.
You hire people for the contributions they can make -- which is why you also make sure they have the tools they need to engage on day one. Your onboarding program ensures the team is aware of the new hire, that someone shows him or her around, that paperwork is completed (preferably online), that the person feels welcome, and they are aware of available resources. Why? Because an estimated 20% of turnover occurs within the first 45 days on the job, and onboarding has been proven to get people started on the right foot.
7. You create a culture where employees want to work.
You know there’s no one-size-fits-all when it comes to culture -- and you’re happy about that. So are your employees, who are more likely to stay at a company that puts them first. Josh Bersin explained the link between culture and employee retention noting that companies with strong positive cultures are the most in-demand employers.
8. You survey your employees and listen to their feedback.
You know what your employees want because you listen to their feedback, perhaps from employee surveys. Adobe’s study found that more than 50% of U.S. office workers would leave a job they love, even take a cut in pay, to land their dream job. So you do what you can to make sure you offer the types of opportunities and advancement your employees are looking for.
9. You offer education and growth opportunities to your employees.
Sixty-one percent of respondents in a 2016 American Staffing Association (ASA) survey said training would help keep them in their current job. Of those listed, 67% simply wanted “cross training to learn skills of a different job” and 64% wanted “training to gain leadership and management skills.” Of course, you are ahead of the game and have a job-swapping program or a buddy system, and your HR team is assisting with leadership and management training, creating versatile workers with long-term career growth opportunities.
10. You don’t throw money at everything.
You avoid counteroffers whenever possible (50% of counteroffer recipients leave in the next year anyway) and instead build a custom retention plan that stops turnover before it starts. You also make sure the plan fits your business and budget, and is adaptable and flexible, too.
Successful businesses of all sizes know that retaining valuable employees requires effort, but it’s effort well spent. Employee turnover is a costly proposition for any business.
Working with your HR team or a partner that keeps all aspects of HR running smoothly can be the best -- and most affordable -- way to ensure your highly valued employees stick with you for the long haul, too. For more information, book a free consultation and our team will contact you shortly.