Over 23% of workers in the U.S. say they plan to quit their job in 2022. Similarly, a 6000-participant survey in the U.K. revealed 24% of the surveyed workers plan to change roles in the next three to six months.
These aren’t empty threats. The “Great Resignation” has taken the world by force, and employers are left wondering how to encourage workers to stay put.
In that sense, having a sound employee retention scheme in place is crucial. After all, retaining employees is cheaper than training new workers, and a constantly changing workforce can cause a ripple effect in other areas of your business.
If you want to reap the benefits of having a stable employee roster, keep reading.
Why you should focus on employee retention
Employees quit for many reasons. While 32% of workers cite “wanting better working conditions” as their primary reason for quitting, other common factors include lack of flexible working hours and feeling burnt out.
Regardless of the reasons, the impact of employees leaving your company isn’t short-term.
Replacing workers can get expensive. The average cost per hire across all industries stands at about $4,425 before training or additional costs. On average, a company can expect to spend about six to nine months’ worth of salary replacing a worker.
New workers also take a while to onboard. Depending on the industry, it can take employees up to two years to become fully productive.
If by now you think it’s all unavoidable doom and gloom, here’s the good news — employee retention schemes can help you avoid the added cost of losing valuable workers and finding new hires.
What an employee retention scheme is
A staff retention scheme can help address many reasons workers quit. It acts as a comprehensive plan that focuses on keeping employee satisfaction high and addressing pain points.
The goal is to help HR and managers identify employees who may be at risk of quitting and determine how to improve the worker’s satisfaction.
Your staff retention policy can include ways to handle frequent issues — pay rises and more flexible schedules — and set guidelines for communicating with employees or training workers.
The plan can also lay out strategies to anticipate employees’ needs, from more comprehensive onboarding to establishing how often managers should check in on their staff.
It’s a mixture of the elements surrounding company culture, compensation, communication, and recognizing achievement.
If you believe your retention rate is suffering, creating a solid retention plan is even more critical.
Calculate your retention rate and compare it to other companies in your industry. You may need to consider calculating it more frequently if you believe the current employment shift affects you.
Why you need an employee retention policy
Replacing workers is never easy, but in a time with so many workers changing jobs, it’s even more difficult.
“About 10% of our hires now don’t show up for the first day. People are getting multiple offers at the same time, and then they’re cherry-picking,” states SpartanNash CEO Tony Sarsam.
An employee retention policy addresses issues your company may not even be aware of. You can track employee satisfaction metrics and improve some, like absenteeism or net promoter score.
Moreover, HR can quickly address issues before an employee decides to quit with a plan in place. You’ll also find that many of these policies will be popular among employees who aren’t considering a career change.
Final thoughts: Employee retention scheme for employers
The Great Resignation is driving a change in work culture.
Employees are demanding more time to spend with their families, more remote work opportunities, and they are willing to find a new job if it means they can gain these.
If you listen to your workers and are willing to meet them on some of these issues, they’ll reward you with higher productivity. Happy workers are 13% more productive than their unhappy coworkers. An employee job retention scheme is an excellent way to boost their mood.
Ensuring your employees feel valued and listened to is essential when building your retention policy. Aim for a solution tailored to employee retention that helps increase engagement and communication.