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With the extremely competitive jobs market we currently find ourselves in, it is now tougher than ever for companies to retain their key talent. 2021 saw a national employee turnover rate of 18%, up from 8% in 2020. This upward trend in turnover will continue for 2022, with a forecasted figure of 18.2% expected . What employees needed from their employers two years ago is vastly different to what they require today and into the future. It is therefore important for employers to take this into account and up their game if they wish to solve the current retention issues.
Why employee’s leave their jobs?
Before identifying how companies can ensure to reduce their churn rate, it’s important to understand why employees leave their jobs. These include:
- Poor company culture
- Better salary opportunities available
- Opportunity for career growth
- Seeking an improved work-life balance
- Opportunity for flexible working conditions
- Dissatisfaction with current working environment
These are just some of the common reasons attributed to employee turnover. With these in mind, we have identified four key strategies employers can take to avoid high employee turnover and increase retention rates.
1. Implement a positive onboarding experience
The onboarding process is one which is often overlooked by companies. However, research has shown that a positive onboarding experience can improve employee retention by 82% . It is important to ensure that your employees are set up for success from the get-go, as well as developing a good first impression of the company. The onboarding process provides the perfect opportunity for an employee to not only learn about their role, but also to learn about the culture of the company and how they fit into it.
Our Top Tip
Automate what you can. By automating video training, forms etc., you can alleviate some of the burden on your new employee and yourself. Send forms to employees ahead of their start date, so they can focus on the more interesting aspects of the onboarding experience
2. Ensure Employees are being compensated fairly
Offering fair compensation to employees is one of the most influencing factors in employee retention. In 2021, 63% of employees who left their jobs cited low pay as the reason . It is important for employers to ensure that the compensation they are offering their employees is in line with the market standards. It is also important to regularly review and adjust salaries in line not only with results, but more importantly with employee effort.
Our Top Tip
To ensure you are compensating your employees fairly, check out our free Salary Report which contains the latest salary insights across a number of industries.
3. Promote Employee Engagement
While companies may believe their engagement efforts are matching the expectations of their employees, many are falling well short of the mark. In fact, only 36% of employees feel that they are engaged in the workplace . The decisions made and actions taken by these employees has a major impact on how a company operate, so naturally a highly disengaged workforce can result in reduced morale amongst employees as well as influencing other factors such as increased absenteeism and a decrease in productivity. Companies can mitigate these outcomes by introducing opportunities for employees to provide feedback, such as using pulse surveys, holding regular review meetings or organising town halls with senior management to have their voice heard.
Our Top Tip
Facilitate employee engagement by using regular pulse surveys, hold regular review meetings or organise town halls with senior management to allow employees to voice their opinions and be involved in how the company operates.
4. Promote a learning and development culture
Nowadays, a major priority for employees is an opportunity to grow in their career. In a recent LinkedIn Workplace Learning Report, 94% of employees said they would be interested in staying with their company longer if it invested in their career development . It is important that employers recognise this and facilitate this in order to ensure they reduce employee attrition rates. This can be done through allowing time and space for employees to upskill, developing personalised learning plans, providing mentorship opportunities and organising learning events. Not only will this approach help in reducing churn rate, but also ensure that the company is keeping up to date with the latest industry trends and knowledge.
Our Top Tip
Integrate discussions on personal and professional development into your review meetings with employees. These meetings can be used to discuss each individuals goals within the company and how management can help them achieve this.
With the high volume of opportunities currently available in the jobs market, it is now more important than ever to ensure companies aren’t overlooking their retention strategies. By investing in employees career development, compensating them fairly, developing an engaging environment and setting them up for success from the start, companies can ensure they have a happier and more productive workforce who are more likely to remain in their current company for longer- a win-win situation for everyone!
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 Fingal Chamber (2022); Available at https://www.fingalchamber.ie/news/details/employee-turnover-more-than-doubles-in-12-months-as-employers-battle-to-keep-staff
 Brandon Hall Group (2015); Available at https://b2b-assets.glassdoor.com/the-true-cost-of-a-bad-hire.pdf
 Pew Research Centre (2022); Available at https://www.pewresearch.org/fact-tank/2022/03/09/majority-of-workers-who-quit-a-job-in-2021-cite-low-pay-no-opportunities-for-advancement-feeling-disrespected/
 Gallup (2020); Available at https://www.gallup.com/workplace/321965/employee-engagement-reverts-back-pre-covid-levels.aspx
 LinkedIn Learning Workplace Learning Report (2020); Available at https://learning.linkedin.com/content/dam/me/learning/resources/pdfs/LinkedIn-Learning-2020-Workplace-Learning-Report.pdf