10 Strategies for Enhanced Employee Engagement and Retention

Why you should improve employee retention

Employee turnover is expensive. According to a 2019 Gallup study, employee turnover costs American companies up to $1 trillion per year. The same study estimates that replacing a single team member can cost up to twice the departing employee's annual salary. Investing in employee retention can help reduce costs and save your company money in the long run.

Turnover not only has a huge impact on costs, but also on team performance and employee morale. It can take time for a new hire to acquire the skills necessary to feel comfortable in their position and keep up with the existing workload, which can lead to frustration and conflict within a team.

Main reasons for employees leaving

Understanding the reasons why employees leave is critical to creating a high-retention workplace. That's why exit interviews are so important - getting to the root causes of employee turnover can help improve employee satisfaction.

Some common reasons why employees decide to leave the company include:

1.Lack of professional development opportunities

If employees feel stuck in their role without clear opportunities for advancement, they may look elsewhere for opportunities that fit their needs. Offering development programs, mentors, and regular performance reviews can help solve this problem.

2.Poor management or leadership

A bad boss can be a deciding factor. Managers play a critical role in shaping employees’ experiences. If employees feel unsupported, micromanaged, or undervalued by their managers, they should seek a healthier work environment.

3.Inadequate work-life balance

When employees constantly feel overwhelmed by excessive work demands and unrealistic expectations, this can lead to burnout. Introducing flexible working arrangements and promoting a work-life balance can go a long way towards retaining employees.

4.Lack of recognition and reward

Feeling valued and recognized is a basic human need. When employees feel like their efforts are not being recognized, they may lose motivation. Recognizing and rewarding achievements large and small can boost morale and promote a culture of appreciation.

5.Ineffective communication

If employees are left in the dark about company news, changes or their own performance, they will no longer be able to engage. Promoting open communication channels and regular feedback sessions can bridge this gap.

6.Cultural problems within the organization

When there is a lack of trust, respect or inclusion, employees may look for companies that align with their values. Promoting a positive and inclusive culture that values diversity can make a big difference.

By understanding the reasons why employees leave, you can develop strategies that promote employee retention. You can create an environment where employees feel valued, supported and motivated to stay.

10 Effective Employee Retention Strategies

The connection between employee engagement and retention is clear. According to Gallup, low-engagement teams have significantly higher turnover rates (between 18% and 43%) than their happier and more engaged counterparts.

From a practical perspective, managers should combine their employee retention strategies with efforts to increase employee engagement. High engagement reduces turnover and increases productivity and overall work performance. In many cases, employee engagement is the key to your company's success.

Below are some of the best strategies to maintain employee engagement, improve employee retention, and increase productivity and morale.

1.Building a positive company culture

Investing in a positive corporate culture promotes employee engagement and retention. When employees feel connected to their company's values, they are more willing to invest their time and energy in their tasks. Here's how to promote a positive culture:

• Define a purpose and align the values: Define your company's core values as guiding principles. When employees agree with these values, they feel a sense of belonging and a common goal.
• Promote diversity and inclusion: Embrace diversity and promote inclusivity within your organization to create an environment where everyone's perspectives are valued. This not only encourages creativity, but also shows employees that they are valued for who they are.
• Create a supportive and respectful environment: Foster an environment where employees support each other and treat each other with respect. Bullying or negativity can undermine morale and drive employees away, while a respectful atmosphere promotes trust, collaboration and job satisfaction.
• Foster strong relationships: When employees feel connected, they are more likely to stay with the company. Host team-building activities, encourage cross-functional collaboration, and give your employees opportunities to connect outside of work.

By building a people-driven culture, you not only promote employee engagement and retention, but also an environment in which each individual can thrive and give their best.

2.Ask employees what they need

In companies where managers don't ask their employees for feedback, dissatisfied employees are easy to spot - and that's exactly what leads managers to be surprised by the termination of their top employees.

The best way to learn what your employees need is to set up employee feedback channels. They help managers listen better and respond proactively to problems.

Employee feedback can include everything from work environment to leadership style to goal setting - and can impact everything from performance to employee retention. Building a positive feedback culture in a company can help leaders build relationships with their employees, leading to higher engagement and better employee retention.

3.Follow your employees’ feedback

If you have asked your employees for feedback, you should also implement it. There's nothing worse than asking employees for feedback and then completely ignoring it. This can have a negative impact on morale because it becomes clear that you are only paying lip service to employee engagement.

By taking feedback seriously, you show your employees that you value their input and are willing to put in the time and effort. Listening to them will help your team achieve their business goals faster and more effectively.

4.Set clear expectations

Clear expectations are the cornerstone of a positive work experience. Employees who have clear goals and know how to achieve them tend to be more motivated and productive.

5.Celebrate successes

Almost two-thirds of employees feel like they don't receive enough recognition at work. Even worse, employees who feel unappreciated are twice as likely to quit.

Employee recognition can be a powerful incentive. When someone is recognized by their colleagues or superiors, they feel valued and can be inspired to perform better.

Implementing employee recognition programs can lead to increased employee engagement and retention. Some tips for celebrating successes in the workplace include:

• Taking time to thank team members for their contributions and giving their colleagues a platform to do the same
• Tailor rewards for important milestones to the individual or team
• Highlighting successes at performance reviews and other formal occasions

Recognize your employees' success and turn it into a real achievement. Attempting to encourage employees with traditional and perhaps outdated rewards like gift cards or "employee of the week" posters often comes across as condescending rather than motivating.

6.Focus on professional development

The key to strong employee retention is to focus on employee development. High-performing employees can become bored at work, especially if they don't feel challenged or don't see any prospects in the company.

It is important to discuss professional development in one-on-one meetings. Find out what the employee expects from their work and what their goals are for the future. Some employees may need leadership development opportunities that will make them successful business leaders. Others benefit more from mentorship programs or formal training that support their professional growth and expertise.

Continuous development ensures that employees remain motivated, committed and ready to take on new challenges.

The role of performance management in professional development

Performance management plays a central role in promoting employee development. There are many ways to ensure your performance management process is as effective as possible. We recommend starting by creating a solid performance management plan.

Regular performance reviews provide managers and employees with a structured platform to evaluate progress, identify strengths and identify areas for development. Frequent constructive feedback fits this and promotes improvement by addressing specific behaviors and providing guidance. Clear goals, reset as needed, give employees the direction they need to feel motivated and achieve tangible results.

Set SMARTER goals: You should always work with your employees to set SMART goals. Collaborating on this fundamental element gives employees clarity on expectations, gives them the opportunity to track their performance and growth against milestones on a timeline, and more.

Ultimately, all of these factors should help create individualized and adaptable professional development plans that allow employees to align their desires with company goals, paving the way for continued growth and advancement.

7.Promote a healthy work-life balance to reduce employee turnover

A company culture that encourages employees to give 100% of their time to their work at all times, even if they have to work outside of office hours, risks creating a culture of burnout, which ultimately leads to an unhappy workforce and higher turnover rates.

It's crucial to prioritize your employees' overall well-being and provide them with support beyond work tasks. So how can you as a manager promote a productive work-life balance, especially since 47% of people say they regularly feel overwhelmed at work?

Here are some of our top tips for helping your employees find work-life balance:

• Offer flexible working hours and the ability to work remotely.
• Use one-on-one meetings to discuss workload.
• Lead by example; Do not write emails to your employees outside of working hours.
• Make sure your employees take the required vacation days.
• More parental support for mothers and fathers

In 2023, work-life balance also means promoting well-being to support employees' physical and mental health.

This can be achieved through initiatives such as wellness programs, offering resources to manage stress and workload, and fostering an environment where employees feel safe when they need help.

These measures can create a workplace where employees are not only productive, but also really feel good - and this in turn helps to build a positive work culture!

8.Apply effective leadership and management practices

Good managers are not only bosses, but also coaches who always have their employees’ backs. They cheer them on in their successes and help them overcome performance difficulties.

As a leader, over time you will figure out what your leadership style is. Just remember that leaders who communicate clearly, provide regular feedback, set realistic expectations, encourage their teams, and proactively address challenges create an environment where employees are valued and feel motivated to stay.

Conflict resolution is also an important skill to improve because difficult conversations don't necessarily have to be difficult. Effective leaders should create a safe space for employees to express concerns, mediate conflicts and find solutions together.

9.A clear onboarding process

A haphazard onboarding process can lure new employees away from your company. According to SHRM, your company could lose up to one in six new employees within the first three months because they weren't properly onboarded.

A good onboarding strategy should:

• Convey and reinforce a good first impression
• Establish clear guidelines for the first week
• Set expectations for the new employee's first month and future at the company
• Connecting new employees with their team and mentors and fostering strong relationships
• Provide opportunities for feedback on the new workplace, company culture, policies and procedures, and even onboarding itself

10.Pay a fair salary

Paying employees fairly isn't just about numbers, it's also about showing that you appreciate their hard work.

How to ensure you pay your employees a fair salary:

1. Stay informed: Regularly review industry standards and salary surveys to ensure your compensation is in line with the market.
2. Transparency is important: When employees understand how their salary is determined, it creates trust. So demystify the process and show how their salary is calculated.
3. Performance bonuses: Link bonuses to successes and achievements. It's like getting extra points for reaching a level in a game!
4. Benefits Package: Offer a solid benefits package that includes perks like health insurance, retirement plans, and wellness programs.
5. Periodic Reviews: Conduct regular salary reviews. It's like a level up - a recognition of growth and commitment.

Competitive wages are important when hiring, especially for new employees seeking financial stability. But what about long-term employee retention?

Interestingly, a salary increase has diminishing returns as an employee retention strategy. Once you reach a point where employees are financially stable, additional benefits and salaries do little to mitigate other factors that impact employee retention.

A simple raise is like putting a Band-Aid on an open wound: it may stop the bleeding somewhat, but it's much better at addressing the root causes of employee turnover.

Monitor and measure employee engagement for successful employee retention strategies

Employee engagement is at the heart of a solid employee retention strategy. And to do this, the best managers have a trick up their sleeve - conducting engagement surveys and collecting key metrics that help them understand how engaged their team is and how they can improve engagement even further.

Tools like pulse surveys provide information about how employees are doing. They reveal all the good things, but also all the hiccups. With these insights, managers can adjust their plans to keep everyone happy and happy to stay on the team.

We have to admit that employee engagement is difficult to quantify because there are so many different levels that can impact employees and each experience is unique. However, there are a number of metrics you can look at, including relationships with colleagues and employee well-being, which are the pillars of employee retention.

Empower your workforce with effective retention strategies. Utilize tools like IceHrm to measure engagement and foster a thriving workplace.