In a 2022 report by CIPD, 60% of UK organisations admit that talent is more difficult to retain now compared to previous years. This is a concern as employee retention is key to developing cohesion in the workplace which will be essential for team building. High employee turnover not only costs more for the organisations but also diminishes the sense of community and cooperation among employees. Furthermore, researchers at McKinsey reported that labour shortages are increasing in the UK – posing more challenges for companies to onboard more employees. It is in the interest of every organisation to strive for employee retention to avoid a decline in overall productivity and performance in the long run.
Employee Retention vs Employee Turnover
Employee retention is widely acknowledged as the ability of organisations to keep their best talent, measured as the percentage of employees with a specified length of employment with the organisation. The other side of that is employee turnover – the percentage of employees leaving the organisation over a set period.
Organisations with high employee retention have shown to experience these benefits:
- Greater work efficiencies
- Higher productivity
- Better employee morale
- Reduction of staffing costs
- Increased revenue and ROI
Workplaces with high employee turnover usually is caused by:
- Lack of compensation, recognition or rewards
- Inequal benefits
- Lack of flexible work opportunities
- Poor work-life balance
- Lack of career development opportunities
- Financial concerns about the company
- Challenges in adapting to company culture
It is imperative for employers to know what drives employee turnover to actively address the issue and maintain talent in their organisation. Based on these factors, here are 5 recommended methods that companies can follow to increase employee retention.
5 Methods to Keep Talent in Your Organisation
Increasing engagement among the leaders within the organisation is crucial for team building. Deloitte’s Human Capital Trends report shows that an engaged workforce can produce a significant impact on businesses as they are the base of any solid organisation. Leaders are the front liners to this effort in engagement – and by having engaged leaders, their influence will impact their teams and drive retention levels.
Taking on Employee Feedback
Having engaged leaders, organisations are empowered by trusted effective communicators and listeners. Having leaders who can truly listen and understand employees in the workplace creates a healthier and more supportive environment. Making employees feel heard and have their feedback considered, significantly contributes to their sense of belonging within the company.
Promoting an Inclusive Culture
It is known that high turnover is often caused by challenges in adapting to the organisation. Organisations should maintain and enforce an open, supportive and inclusive culture to support employees from a variety of backgrounds. Keeping these conditions in place will help companies retain the best talent that they have recruited.
Investing in Employee Growth and Development
The lack of advancement in their careers is also one of the main reasons for people leaving their jobs. Career growth is a common ambition among many workers and by providing opportunities for growth and development, employees will be less likely to seek other opportunities outside of their workplace. This also significantly benefits organisations as they can further empower their employees and improve their work.
Review and Analyse Exit Interviews
When an employee does leave the company, there should be comprehensive reviews in place to understand why it has happened. Employers should prompt this conversation by going from the beginning of their employment until the end to fully understand the nuances that drive the decision. Having this insight, companies can map out their strategies and changes needed to move forward.