Even before the COVID-19 pandemic, low unemployment rates made hiring a challenge, and employers were focused on retaining employees. Yet, the COVID-19 pandemic changed how businesses operate virtually overnight. Many employees are working remotely and using this time to evaluate their job satisfaction. With 7 million job openings, employees can attain new positions that are more meaningful to them without much difficulty—along with the work setting and leadership they desire. This is creating employee retention challenges for businesses across the country.
The average cost to hire and onboard an employee is around $4,000. Businesses need to be proactive and avoid making assumptions that employees are satisfied and potentially lose this investment in talent. Strong employee retention practices can greatly reduce employee turnover and should begin on an employee’s first day. These include:
- Onboarding and orientation–Research by Glassdoor found that organizations with solid onboarding practices increase retention by 82 percent and productivity by over 70 percent. From the first day through ongoing support and training this is necessary for retaining employees.
- Employee compensation–Look at total compensation, such as bonuses, paid time off, health and other employee benefits, and retirement plans, not just salary.
- Perks--Flexible schedules and remote work options are highly valued perks, including paid parental leave.
- Communication–Good workplace communication is essential, and employees should feel free to share ideas, questions, and concerns at any time without ramifications.
- Quality management or supervision—Employees frequently leave because of managers or supervisors, not because of their jobs. Employee complaints often point toward leadership not making expectations clear and offering a framework for employee success.
Employee retention requires strategically reviewing the entire employee experience and understanding the company culture. Failure to do so can be costly to your bottom line.
A great workplace culture can give your company an advantage in a tight employment market, when essentially the same pay, signing bonuses, and benefits are being offered to prospects. To learn more about creating a company culture that attracts and retains talent, register now for Healy Group’s Live Webinar: How to Create a Company Culture to Attract and Retain Talent.
- What makes a great company culture?
- Why is workplace culture important to attracting and retaining talent?
- How you can identify your workplace culture?
- How can you create a strong company culture?
Culture is everything in a tight job market. Learn how to build and sustain a good company culture in your organization and compete for and retain the best and brightest talent.
About the Author
John Kersey joined Healy Group in 2003 and has 30 years of experience designing risk management programs for commercial clients. As a risk management advisor, John strives to build strong relationships with his clients and business partners to understand their needs better and provide the best risk management strategies for their unique situations.