5 Strategies to Boost Employee Retention and Reduce Attrition

Turnover Rates Explained

Simply put, turnover rates are the rate at which employees leave a company, either voluntarily or involuntarily. It is often expressed as a percentage and is one of the most crucial data points that HR monitors to understand the health of a company. Effective leave management can help reduce turnover rates by ensuring employees feel supported and valued, contributing to better retention.

At IceHrm, we have identified numerous reasons why employees leave their jobs. Turnover rates can be attributed to factors such as a desire for change, burnout, feeling undervalued, and poor relationships with managers. Effective document management can help track these issues, enabling HR to address them proactively and improve employee retention.

Not retaining employees is disruptive and costs companies money and time in finding replacements. In addition, high turnover rates can damage your company's reputation as potential customers may not want to do business with a company that can't stop its employees from jumping ship.

5 Employee Retention Strategies

According to Gallup, the cost of replacing an employee can be as much as double the employee's salary. In this article, we'll discuss how implementing employee retention strategies can save you money, time, and your reputation.

Use psychometric assessments

Psychometric testing can improve employee retention in the long term because it allows employers to assess which employees are best suited for current roles, promotions, and career opportunities.

By measuring numerous psychological and behavioral skills, companies can learn more about a candidate's qualities, values, and motivations than they can in a traditional interview.

In addition, employers can get a good idea of ​​a candidate's natural skills and personality traits that could affect their job performance, ability to work in a team, and risk of burnout. Assessing a candidate's risk of burnout is critical to retention efforts, as burnout is the reason why over a third of employees have quit their jobs.

Start employee retention efforts during the onboarding process

It may seem premature to think about employee retention during onboarding. But as the old saying goes, start as you intend to go on. Knowing your new hire's strengths and weaknesses will help you better assess what training and support they will need during their tenure with you.

At IceHrm, we've created an onboarding report that will give you pointers on how to address your new hire's personal style, values, and motivators during their first few months at your company.

Offer ongoing training opportunities

According to Cengage Group, 83% of employees who left their jobs in 2021 did so because they felt stagnant in the role.

This problem can easily be remedied by offering opportunities for advancement through training and development. When companies invest in continuous learning, employees are less likely to feel stuck in a rut and remain motivated and engaged. Spending a few hundred on training in the short term can save companies thousands in the long term.

Schedule regular performance reviews

Performance reviews give your employees the opportunity to receive recognition for a job well done or to point out areas that need improvement. Recognition and helpful criticism inspire people to do better. Additionally, performance reviews make employees feel that their opinions are heard in the company and that their superiors value their hard work. Understandably, managers and directors are often too busy to give their employees feedback on a daily basis. Allowing uninterrupted one-on-one meetings goes a long way in building an employer-employee relationship.

Create and maintain a positive work environment

A 2022 survey found that the number one reason for resignations is a toxic company culture. When experienced employees quit due to a hostile environment, a new employee who is less emotionally invested in the company is much more likely to quit sooner.

Fortunately, maintaining a positive company culture isn't difficult. Creating strong teams by organizing social activities is a great start. But remember that people have things going on in their personal lives too, which can impact how they treat their coworkers.

In today's world of Zoom meetings and remote work, it's easy to foster a good work-life balance. Giving employees the opportunity to focus on their work from the comfort of their own home will make their office days more fulfilling.

Implementing employee retention strategies, such as those supported by IceHrm, can save your company money, time, and enhance your reputation, leading to a healthier workplace.