9 Employee Retention Strategies to Keep Top Talent

Replacing an employee is simply expensive. Regardless of company size, studies show that the total cost of losing an employee can range from 1.5 to 2 times their annual salary. That's why you need a variety of solid employee retention strategies.

While there's no magic bullet to combat employee turnover, we've compiled a list of 9 foolproof employee retention strategies that will help you re-engage and retain your top performers.

Find out why employees are leaving (and fix it)

When it comes to retention, the details matter. Did more than one employee quit because they weren't treated fairly? Is your company competing with a competitor? Were the majority of those lost low performers? This type of information can be obtained through exit interviews and honest conversations with current employees.

Beyond exit interviews, companies must be proactive in their efforts to retain top talent. Engagement surveys allow companies to measure employee sentiment and get a head start on turnover by taking the pulse of its warning signs. A word of caution? If you solicit feedback, you should act on it.

Create a world-class onboarding process

Make sure you have a solid plan in place for the new hire's first 30 days, especially the first day. Whether it's a small gift, a team breakfast or a personal note from the company founder, do whatever it takes to make a new employee feel welcomed and part of the team as soon as possible.

Considering the link between employee loneliness and staff turnover, these small acts of kindness and inclusion will pay off in the long run.

Link employee work to broader corporate initiatives

With 93% of employees unable to link their day-to-day work to company goals, it's no surprise that disengagement and turnover are on the rise.

When employees can't see their impact on the business, it reduces meaning and productivity, among other things. To reconnect employees to their purpose, try reimagining your goal-setting process using the OKR method, goal management software, or both.

Ensure that managers give positive feedback

Even the best managers forget to tell their direct reports what they do well. This simple act builds employee confidence and creates the trust needed when constructive feedback is required. Need examples? Check out our article, 24 examples of positive feedback at work.

To increase recognition-based engagement, try improving your recognition and rewards programme. Investing in tools such as employee recognition software can help foster a culture of real-time positive feedback, where employees feel valued for victories big and small.

Communicate the shared vision

People feel engaged, valued and loyal when they are in the know. As much as possible, let employees at all levels of your company know where you are going and how you will get there.

Conduct regular compensation reviews

Compensation is not the top priority for job candidates, but we would be lying if we said it didn't matter. To retain quality employees, compensation plans must not only be fair, but also competitive. If you are not already conducting annual compensation reviews, now is the time to start.

Provide learning and development opportunities

Access to growth opportunities is the fastest growing reason for people to leave their jobs. In 2018, 61% of jobseekers ranked career growth as most important when looking for new opportunities. (For younger workers, this figure is 65%).

But don't worry, if you're not in a position to offer promotions, many employees see lateral movement as just as valuable as upward movement. When given the opportunity to develop new skills, quality employees will jump at the chance.

Stay on top of trends

There are environmental factors over which we have absolutely no control, and unfortunately, they still affect retention. To implement effective employee retention strategies, it is important to be aware of how the world of work is changing and to adapt accordingly.

Say goodbye

Even for the best workplaces, it is no longer realistic to expect people to stay with the same company for decades. In fact, the current median number of employees who stay is around 4.2 years.

If someone gets a better opportunity, be happy for them! Then try to solve the problem that made you not the best opportunity.

Ready to tackle the issue of employee turnover from all angles?

Find Out More Info... Strategies of employee retention