Employee retention strategies to drive organizational success
This concept is becoming increasingly important and it is making companies incorporate employee retention strategies into their internal plan.
What is employee retention?
Employee retention allows to identify employees located in key positions within the company and to carry out a series of actions aimed at keeping them in the company.
To understand the importance of employee retention we must take into account the costs of turnover within companies. By knowing the figures that this turnover imply, it can be affirmed that employee retention will provide a great gain in terms of productivity and competitiveness.
Why is it important to take care of it?
Excessive employee turnover implies a deficit in communication, a lack of trust among employees, and little or no employee alignment.
This generally translates into less responsibility or lack of commitment to the work in progress. On the contrary, when there is an employee retention strategy where employees feel aligned with the company and see themselves as part of it, the benefits are numerous for both:
- They feel more self-confident which makes them more confident in their work and therefore, they get more out of their work time.
- When employees feel part of the company, they become ambassadors of the brand.
- The motivation that generates a high engagement with the company increases the employee's goals towards the company and towards themselves.
- The fact of being motivated leads to better results from the employee towards the company, increasing productivity and profits.
- When the strategy is effective, the company is likely to retain great talent.
What should we know before implementing strategies of employee retention?
As time goes by, changes in favor of the employee have increased, this derives in a greater training on their part, developing and growing in order to apply to companies. This is how they add value and become indispensable to the company. Therefore, the organization will want to retain those employees who are more qualified, since they consider that these provide them with the opportunity to expand and maintain their market competencies. Due to the potential of these employees, companies are making strategies to retain talent, but first they must consider the following:
- Knowing the profile and level of commitment of employees and their contribution to the company.
- Value employees as the main asset, since they are the main image of the company.
- Take into consideration the time and resources invested in their training, in order to leverage this investment in the company's results.
What are the most common employee retention strategies?
According to Workday, a leader in cloud-based finance and human resources applications, the six most common talent retention strategies that companies should pursue are the following:
- Provide workers with an environment of internal mobility, helping them acquire new skills and providing them with information about other roles they can fill within the company that may be a good fit for them.
- Improve team performance management by investing in training, goal management and organizational culture.
- Offer and encourage on-the-job learning. Adding training courses or internal promotion increases employee engagement.
- Develop retraining strategies. Constant innovation brings a change in required skills. In recent times, new technologies have changed the way we work, which is why companies must keep up with the needs of workers and the company.
- Incorporate career sprints into employee development. They help employees to collaborate better with cross-functional teams, organize themselves better and acquire new tools at a pace that suits the way they work.
- Build strong managers and future leaders. Provide expertise, training and support to employees to increase their critical skills needed to lead and take on leadership roles.
In short, any company that wants to save turnover costs and wants its most efficient employees to stay in their current positions should implement an employee retention plan to achieve the benefits provided by this type of strategy.