Employee Retention: Benefits and Strategies to Implement It

As a company, it is only natural if you want your company to retain the number of its staff for a long time. To reach such expectations, you need to apply several important strategies for employee retention in your company.

What can your company do to ensure your company has a stable number of employees in the future?

Definition

Employee retention is a particular act committed by companies to ensure that their employees will stay working in these companies. Employee retention is especially performed to decrease the possibly high turnover rate. The high turnover rate can cause several challenges and problems for companies, including expensive spending for recruiting and training new employees, a decrease in productivity, and customer satisfaction. 

To put it simply, employee retention includes several strategies and policies specifically designed to ensure that the employees remain committed, motivated, and happy in their companies. A happy employee is inclined to be more productive and contribute to the company’s growth. 

Benefits 

Why is it so important for companies to increase their employee retention? These benefits can convince these companies. 

1. Cheaper Recruitment Spending

Recruiting new employees can induce expensive spending, such as spending on posting job vacancies, prospective employee selections, and training processes. If a company can successfully retain its employees, the company can significantly reduce recruiting costs. Even better, experienced, and long-time employees usually have better performance and contribution to the company’s goals.

Read also: 5 Effective Stages of Staff Recruitment

2. Efficient New Staff Training Programs

An employee sticks to their company for a long time, they have to potential to become more professional and competent in their work and responsibilities. You do not need to do intensive training programs for new employees. Why is it that way? As older employees already work in that company for a long time, they have a better understanding and capabilities to do their jobs compared to the new employees. Their staying in the company can also ensure there is enough wisdom and experience that can be shared with the new employees.

3. Increased Productivity

Satisfied employees who feel highly involved in their jobs are usually more productive. They have a high intrinsic motivation to give the best of their abilities to their companies. Good employee retention can create a productive work environment and make the employees feel appreciated and motivated to work optimally. 

4. More Involvement from the Staff

Good employee retention also means that the employees feel in tune with a company’s visions, missions, and values. They become a part of the company’s culture itself and will try their best to achieve the common goal. The higher the employees’ involvement is, the stronger the bond between the employees and the company. 

5. Increase in Staff Competence and Experience

Employees who stay in their companies for some years will eventually undergo development in their professional and private lives. After honing their skills over the years, there at the experience and competence will improve their work quality. Competent employees can make companies perform better in the market and be able to face business challenges with more confidence.

6. Increase in Profit

Employees who work long-term can provide consistent contributions to the growth and profit of a company. When employees feel appreciated for their contributions, there will become more motivated in offering the best results for the company. In the long term, this will positively impact the company’s profit and income.

7. Structured Work Process

Employee retention will also ensure stability within a company’s organization. As the employees continue working in that company, there is no need to fill a suddenly vacant position. By doing so, none of the wisdom and experience of the employees are lost and the company’s work process will stay orderly and efficient. 

8. Improved Customer Service Experience

Experience employees with sufficient knowledge about certain products and services of a company can provide better service for the customers. Retaining high-quality employees can improve customer service quality. Customer loyalty will in turn increase thanks to the improved service’s quality. Even better, the company’s positive image can also improve in society.

Strategies 

After knowing the benefits of employee retention, you can do the following six steps to improve the retention rate in your company. 

1. Setting Realistic Expectations

Provide a detailed list of tasks and responsibilities that prospective employees will have to do in the future. Explain the work expectations transparently and realistically, so that the employees will know what it is that the company expects from them.

2. Improving Staff Communication

Build an open and inclusive communication culture in the company. Give the chance for the employees to deliver their ideas, opinions, and complaints. This strategy is particularly useful to create a more harmonious work environment that can support collective growth.

3. Offering Appreciation

Give appreciation by expressing gratitude and compliments to the employees because of their contributions and achievements. Earnest recognition and work can make the employees feel appreciated and motivate them to keep on gaining achievements.

4. Giving Competitive Compensation

Ensure that the paycheck and benefits that your company offers are suitable for the employees’ competence and responsibility levels. Fair and competitive compensation will not only retain the older and more qualified employees but also attract new employees who want to join the company.

Read also: The Importance of an Effective Recruitment Process to Find the Best Employee

5. Creating Positive Work Culture

Create a positive, inclusive, and collaboration-oriented work culture. A company with a positive and supportive work atmosphere will be more attractive to job seekers and retain existing employees.

6. Employing Outsourced Experts

Sometimes, employees who already work in a company may feel overwhelmed by the number of tasks and responsibilities that they need to finish. Especially for employees in IT, they can be trusted with a surprising amount of responsibilities that may or may not match their qualifications.

One of the most attractive solutions to increase employee retention is by employing outsourced employees in IT. Thanks to the ACE (AdIns Center of Excellence) service from AdIns, companies no longer have to manually search for outsourced IT workers.

To gain qualified IT employees, you can choose either project-based temporary IT employees or permanent employees with more professional experience. Contact us through WhatsApp for further consultation with us, and increase the employee retention rate in your company only with the IT outsourcing service from AdIns!