In today’s tight employment market, retaining employees is critical. When looking at employment from a cost perspective, it is easy to see how recruiting, and hiring can significantly cut into corporate budgets. Josh Bersin, a consultant with Deloitte, states that the costs associated with “losing an employee can range from the tens of thousands of dollars to 1.5 to 2.0 times the employee’s annual salary.” These costs include hiring, onboarding, training, and productivity losses. Furthermore, Bersin, explains that employees are “appreciating assets that produce more value to an organization over time, which explains why losing them is so costly.”
With such high financial and institutional costs associated with replacing employees, how do businesses increase employee retention?
Three Ways to Increase Employee Retention
When employers offer performance awards to workers, they are showing their workers they are appreciated. When money accompanies a performance award, it further emphasizes this recognition. Performance awards also provide employees a goal to achieve beyond their primary job requirements. This can significantly improve performance and create a culture of excellence.
It’s All About the Perks: Offering Benefits That Improve Work-Life Balance
Work-life balance has become a key theme in today’s employment market. Businesses that offer flexible work arrangements have not only more satisfied employees, but also higher levels of productivity. With respect to scheduling, many employees view part-time employment opportunities, offered by employers, to be an attractive option for achieving work-life balance. For workers that prefer full-time hours, allowing 8-, 10-, and 12-hour shifts can make planning easier for employees who are juggling family commitments.
In addition to flexible scheduling, businesses that offer perks to make the lives of their employees more enjoyable engender a sense of loyalty which makes workers less likely to seek out other opportunities. For example, employers can offer reduced membership fees at local recreation centers, such as health clubs. This perk not only makes employees healthier, it can also reduce the cost of healthcare. Also, businesses can provide discounts that employees can use at restaurants and entertainment venues. By offering discounts to these establishments, workers can enjoy time with their families and friends which improves their mental health and creates higher productivity on the job.
Providing Training Opportunities
Employers that offer training opportunities demonstrate they value the careers of their workers. Providing training and certifications can serve as a valuable asset in an employee retention strategy. Employers can provide training in many forms such as online and in-person courses. Not only does training benefit a worker, it also benefits a business by having well-trained employees who bring new skills and abilities to the work environment.
Focus on Employee Retention with New Era HR Solutions
Replacing employees is a time-consuming process that can devour corporate budgets. Especially in today’s tight employment market, it is best to retain existing employees. There are several strategies that businesses can utilize to increase retention rates, such as performance awards, training and providing perks that help with work-life balance.
If your organization needs new talent, it is time to turn to the recruiting experts at New Era HR Solutions. At New Era HR Solutions, we provide clients with top talent that deliver results. Contact our top staffing specialists today to learn more!