The COVID-19 pandemic has disrupted the world of work in unprecedented ways. Millions of people have lost their jobs, switched to remote work, or faced new challenges and uncertainties in their careers. As a result, employee retention and engagement have become more important than ever for organizations that want to survive and thrive in the post-pandemic era.
However, retaining and engaging employees is not an easy task, especially in a dynamic and volatile global environment. Gartner’s report has revealed that the pace of employee turnover is predicted to be 50–75% higher than companies have experienced previously, and the issue is compounded by it taking 18% longer to fill roles than pre-pandemic. [1]
A survey by McKinsey & Company pointed out that over 25% of employees said they would consider switching employers if their company go back to a fully on-site work approach. [2] These statistics indicate that many employees are reconsidering the role of work in their lives and are looking for more flexibility, autonomy, and purpose.
So, how can organizations retain and engage their employees in this new reality? In this article, we will share five strategies that you may not have thought of before.
POPULAR: Hybrid Work: Four Ways to Strategize Employee Retention
Turnover/Resignation Statistics Since COVID
The Great Resignation is the mass quitting of over 47 million U.S. workers in 2021, driven by various factors related to the pandemic and changing work preferences. [3] [4] [5] Employers face labor and skill shortages, and need to offer more than money to keep and attract workers. They also need to create a positive and inclusive work culture that supports engagement, well-being, learning, and development. This way, they can reduce turnover and build a stronger workforce for the future.
What Are Employee Retention and Engagement?
Employee retention and engagement are two interrelated concepts that are crucial for organizational success.
- Employee retention refers to the ability of a company to keep existing employees by using employee engagement as a retention tool.
- Employee retention initiatives are often introduced by a company, with the aim to develop and maintain an environment where existing employees feel supported and want to remain within the company.
- Employee engagement refers to the degree to which an employee feels committed to, identifies with, is satisfied with, and is energized by their work and their organization.
- Employee engagement is influenced by various factors, such as:
- The alignment of personal and organizational values
- The quality of work relationships
- The clarity of roles and expectations
- The recognition and rewards
- The opportunities for learning and development
- The degree of autonomy and flexibility
- You can measure employee engagement by asking employees to complete a self-report scale that assesses these four elements.
Employee retention and engagement are mutually reinforcing.
- Engaged employees are more likely to stay in their organizations, as they feel a sense of belonging, purpose, and fulfillment.
- Retained employees are more likely to be engaged, as they benefit from continuity, stability, and familiarity.
This is one of many reasons why companies need to invest in strategies that foster both retention and engagement among their workforce.
Benefits of Employee Engagement and Retention
Employee engagement and retention are not only good for employees, but also for employers. Here are some of the benefits of having an engaged and loyal workforce:
- Higher productivity: Engaged employees are more motivated, focused, and efficient in their work. They also take fewer sick days and absenteeism.
- Better quality: Engaged employees are more attentive to details, standards, and customer needs. They also make fewer errors and mistakes.
- More innovation: Engaged employees are more creative, curious, and willing to try new things. They also share their ideas and feedback more openly.
- Lower turnover: Retained employees are less likely to leave the organization voluntarily. This reduces the costs and risks of hiring, training, and replacing new staff.
- Higher customer satisfaction: Engaged and retained employees are more friendly, helpful, and responsive to customers. They also create stronger relationships and loyalty with customers.
- Greater profitability: All these benefits lead to improved financial performance and competitive advantage for the organization.
Check out our guide to the best employee engagement software to help you engage and retain your employees even more efficiently.
5 Strategies to Improve Retention
Keeping your employees happy and loyal is essential for your business’s success. However, many employees may leave their jobs for various reasons, such as better pay, more flexibility, or more opportunities. To prevent high turnover and retain your best talent, you need to implement some effective retention strategies. Here are five strategies you can use to improve retention in your company:
1. Increase Salary and Benefits
One of the main reasons employees quit their jobs is because they find a better compensation package elsewhere. To avoid losing your employees to your competitors, you need to offer competitive salaries and benefits that match or exceed the market rates. You can also provide regular raises, bonuses, commissions, or other incentives based on performance and achievements.
2. Provide Effective Leadership
Employees need to feel supported, respected, and valued by their leaders. You need to communicate clearly and frequently with your employees, set clear goals and expectations, provide constructive feedback and recognition, delegate tasks and responsibilities appropriately, and empower your employees to make decisions and solve problems.
3. Increase Employee Engagement
Employee engagement is the degree to which employees feel connected to, satisfied with, and energized by their work and their organization. To increase employee engagement, you need to create a positive work culture that fosters collaboration, creativity, and purpose. You can also involve your employees in decision-making processes, solicit their ideas and opinions, celebrate their successes, and organize social events and activities.
4. Provide Mentoring and Development
Employees want to grow and learn new skills in their jobs. You need to assign mentors or coaches to your employees, offer training programs and courses, cross-functional projects and assignments, and support career advancement and mobility within the organization.
5. Offer Perks and Flexibility
Employees appreciate having some perks and flexibility in their work arrangements. You can provide some benefits that enhance your employees' well-being and work-life balance, such as health insurance, wellness programs, gym memberships, childcare services, or employee discounts. You can also allow your employees to work remotely or have flexible schedules that suit their needs and preferences.
Optimize your Employee Retention with Manatal
Aside from the strategies above, having an efficient tool at your disposal can even further reinforce your employee engagement and retention approach in a long run. Manatal comes with comprehensive features that not only let you monitor and improve your employee retention metrics, but also hire the right talent for the right job that lasts.
Not only does Manatal automate the recruitment process, identify the right talent quickly, and provide a smooth hiring process from start to finish, but it also comes with nice features that can help HR professionals out there closely connect with their talents.
With an ATS like Manatal, you can leverage its innovative features and make sure of a low turnover rate.
Manatal is fully capable of generating coverage reports and analytics. With this data, you can track and measure the engagement and tackle the issue before it develops into a turnover.
LEARN MORE: Manatal’s ATS
Wrapping Up
The global pandemic coupled with the Great Resignation has led to unprecedented levels of turnover and resignation among workers, creating significant challenges for employers who need to cope with labor shortages, skill gaps, and increased competition for talent. Employee retention and engagement have become more important than ever for organizations to survive and thrive.
Employee retention and engagement are mutually reinforcing, and both can have positive impacts on organizational performance, such as productivity, innovation, customer satisfaction, and profitability. By implementing the five strategies discussed in this article, organizations can create a more resilient and adaptable workforce for the future.
Don't wait any longer to start improving your recruitment and retention results. Click here now to learn more about Manatal and take the first step towards a stronger, more successful team.
Citations:
1. It’s Time to Reimagine Employee Retention (hbr.org)
2. Three Steps To Solving Employee Retention Problems
3. The Great Resignation Didn’t Start with the Pandemic (hbr.org)
5. What is The Great Resignation and what can we learn from it | World Economic Forum (weforum.org)
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