It’s a candidate’s market. With unemployment rate below 4%, top talent is ready and eager to leave current positions if they spot a better fit. It’s emotionally tough when you lose a great team member; the price of recruiting and onboarding a replacement is costly, as well. A study by the Society for Human Resource Management suggests that the hiring and training costs of a new employee can be 6 months or more of their salary. Retainment of talent is an essential strategy for any business today. But, your approach can’t be to provide a counteroffer when an employee is about to jump ship. It requires creating a culture of engagement and empowerment that resonates with your entire team from day one.
Here are 3 approaches we take at Red Caffeine to foster a culture of engagement:
1. Empower employees to take ownership
True engagement happens when employees are empowered to understand how they impact the bottom line. Red Caffeine gamifies business goals with the Great Game of Business to involve employees, or players, in improving processes, which enhances engagement. Gallup research found that employees that are engaged at work are 59% less likely to look for external opportunities in the next year. Giving employees the tools to strategically think about company decisions, fosters a culture of openness and turns employees into advocates. Bonus - it’s not only good for retention, it’s great for business.
2. Flexibility is key
Top talent often views a rigid 9 to 5 office schedule as a disadvantage. A Gallup survey found that 51% of employees would change jobs for more flexible scheduling or flextime. Millennials, who make up 35% of and represent the largest generation in the American workforce today, are leading the push to advocate for greater choice in where and when they are working. Research from Owl Labs and TINYpulse found companies that support remote work have 25% lower turnover than companies that don’t. Flexible scheduling can also signal to employees that employers are committed to work-life balance and that they trust their team members to do the job right, wherever and whenever.
3. Opportunities should be transparent
A lack of transparency around professional and financial growth can provoke employees to seek new opportunities. TINYpulse research found strong manager transparency resulted in a 30% higher retention rate. Technologies, such as PayScale, can provide employers greater insight into how they are paying employees based on the tasks completed day-to-day, ensuring competitive compensation for your team and industry benchmarks of what professional development would merit increased compensation. Clear career pathing signals the steps and timeline for an employee to increase their compensation and responsibilities. The same TINYpulse research found that employees with access to professional training were more than 10% more likely to stay. Coupling this with a realistic timeline creates a culture of transparency around professional development that will encourage team members to look for new internal challenges and discourage them from seeking external ones.
The bottom line: Retention takes effort
The journey doesn’t end when that perfect candidate has signed their contract. Investing in a responsive, transparent culture will keep your team engaged with their work and contributing for years to come.
Need help raising your retention rate? We have ideas and proven tactics, just let us know!