Employee retention is a critical aspect of sustaining a thriving organisation. In a dynamic and competitive job market where employee preferences come first, businesses are increasingly recognising the importance of implementing key employee retention strategies to retain top talent.
This entails going beyond traditional approaches and embracing innovative employee retention tactics designed to create a workplace environment where employees feel valued, supported, and motivated. In this blog, we explore six key retention strategies, each addressing different facets of employee satisfaction and well-being that businesses need to keep in mind when seeking to retain valuable staff.
Why is employee retention and staff happiness so important?
There’s no denying that employee retention is vital to a company's overall success and sustainability, yet 86% of all employees are open to new opportunities at other companies – a worrying insight for HR managers looking to keep top talent in tow. Luckily, happy and engaged employees are more likely to remain committed to their current employer if they find fulfilment and satisfaction in their roles.
To try to counter the possibility of a dwindling workforce and secure existing talent in the long run, it’s worth investing in employee retention strategies that prioritise employee happiness. Employee retention strategies underpinned by initiatives that foster a positive work environment, career development, and a sense of purpose can contribute to overall employee engagement. This helps businesses foster a sense of loyalty that can improve and maintain retention rates, solidifying organisational stability in a dynamically changing workplace environment.
What is the true cost to your business if you fail to retain your staff?
A key factor when considering the importance of employee retention is the often overlooked but substantial costs associated with employee churn. Retaining existing employees is far more economical than undertaking the time- and cost-intensive process of interviewing, recruiting and training new employees, not to mention the inevitable productivity dips that occur during onboarding that can accumulate, posing significant financial burdens.
Another cost that comes with churned employees is the loss of valuable institutional knowledge that builds up over time. Well-tenured employees understand processes and cultural nuances unique to the business, which invariably streamlines things, leading to time and cost savings that are then lost if the employees churn.
At the same time, teams feel the loss of valuable colleagues and often have to adapt by taking on more work while replacements are recruited, which reduces morale and could lead to even more employees churning.
6 top employee retention strategies
So, what are some employee retention strategies companies should consider to improve their retention rates? We unpack 6 of the top strategies below.
1. Increase pay and benefits
Increasing employee pay and benefits is a vital employee retention strategy, given that compensation is consistently ranked among the top three elements influencing an employer's brand for attracting candidates. A competitive salary and comprehensive benefits package attract top talent and play a crucial role in retaining existing employees.
However, budget constraints may limit the feasibility of substantial salary increases, making distinct and flexible benefits packages a cost-effective alternative to enhance overall employee satisfaction and retention. This approach allows organisations to tailor their benefits offerings to meet the diverse needs of their workforce, recognising unique preferences and priorities without significantly increasing fixed payroll costs.
Flexible employee benefits platforms, like FlexGenius, that can be customised to meet individual employee needs, not only help to retain staff but also enhance overall employee satisfaction.
2. Financial wellbeing solutions
An effective employee retention strategy involves offering financial well-being solutions, particularly in today's uncertain climate where employees seek financial stability when faced with the unexpected. Providing peace of mind through benefits like critical illness cover, death-in-service benefits, and income protection demonstrates a commitment to supporting employees in times of need that can do wonders for fostering loyalty.
Introducing an employee benefits platform that offers a range of financial well-being solutions can help make this employee retention strategy easy to implement. FlexGenius is an example of a benefits platform that offers comprehensive financial well-being solutions that can significantly enhance your organisation’s retention efforts by fostering a sense of security and care amongst employees.
3. Employee wellness through health benefits
Prioritising employee wellness through comprehensive health benefits is a strategic approach to employee retention that reflects a commitment to the overall well-being of your workforce. Offering options like private medical insurance or cash plans provides employees with flexibility in managing health-related expenses, alleviating concerns about unforeseen medical costs while promoting a sense of security.
Prioritising preventative health measures in employee wellness strategies is also crucial. Health screening options empower employees to proactively monitor their well-being and maintain ongoing health, while discounts on health club memberships encourage a proactive fitness approach, fostering a culture of well-being within your organisation.
Look for an employee benefits platform that offers wellness options like medical insurance, dental cash plans, health screenings, online doctor access and health club access.
4. Provide access to discounts
Providing discounts that offer employees the opportunity to save money on major expenses, such as home appliances, electronics, or even vehicles, not only enhances their financial well-being but also fosters a sense of appreciation for you as the employer. Moreover, extending discounts for everyday items like groceries, clothing, and entertainment contributes to a positive work culture by improving the overall quality of life for employees.
Consider an employee benefits platform with a vast array of perks, like FlexGenius, so that employees can enjoy tangible financial benefits while you bolster your retention efforts by demonstrating a commitment to the well-being and happiness of your workforce.
5. Recognise great employees
Employee retention can be significantly bolstered by recognising and appreciating outstanding contributions. Establishing a culture of appreciation within the workplace, facilitated by peer-to-peer recognition, fosters a positive atmosphere where employees feel valued for their efforts.
Managers can further reinforce this strategy by implementing points-based reward systems. By acknowledging and rewarding great employees with points that can be redeemed for personalised gifts or experiences, businesses empower employees to choose rewards that hold personal meaning for them.
Recognition not only enhances morale but also builds a sense of camaraderie among team members, creating a more engaging and supportive work environment. So leverage an employee benefits platform that can support integrated rewards programs to help you get this employee retention strategy going.
6. Tailor lifestyle benefits to match your employees
Tailoring lifestyle benefits to match employees' preferences is another approach to boosting employee retention. Adopting a benefits package that can be customised to align with the diverse needs and lifestyles of your workforce is one way to achieve this.
Tailored benefits worth offering include cycle-to-work schemes, which not only promote a healthy lifestyle but also offer a sustainable commuting option, and payroll giving, which provides an avenue for charitable contributions directly from the payroll, allowing employees to support causes close to their hearts. Flexible holiday trading is another benefit that allows employees to adjust their holiday entitlement to better suit their individual needs and preferences, promoting a healthy work-life balance.
This customisation not only enhances job satisfaction but also shows an understanding and respect for the unique circumstances and priorities of each team member. By tailoring lifestyle benefits, organisations can create a workplace culture that values and accommodates individual differences, contributing significantly to employee retention.
Summary: Embrace the future of employee benefits with FlexGenius
Fostering a culture of employee retention involves a multifaceted approach that takes into account the various needs and aspirations of a diverse workforce. The strategies outlined above enhance job satisfaction and cultivate a sense of loyalty, engagement, and overall well-being amongst employees, helping to ensure long-term employee retention.
As organisations continue to evolve, their commitment to innovative employee retention strategies will undoubtedly play a pivotal role in attracting, retaining, and nurturing a high-performing and satisfied workforce that stays. Forward-looking employee benefits solutions, like FlexGenius, can help you get the most out of your retention strategies, allowing you to reduce the costs associated with employee churn by retaining your best people.
Explore FlexGenius’ transformative solutions or why not book a demo to see the platform in action? Alternatively, get in touch with us to find out more about how we can help your business stay ahead in the dynamic landscape.
*Avantus does not provide tax or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax or accounting advice. You should consult your own tax and accounting advisors before engaging in any scheme.