Employee Retention - Do’s and Don’ts

Over 13 million workers quit their jobs in the first quarter of 2022 at approximately 3 percent of the total workforce every month, according to the US bureau of Labor. What this means is that a lot of people are trigger-happy to leave their employers for better opportunities.

The Great Resignation has made it an employee-driven job market now and this change is irreversible. Too many skill-oriented jobs and too few skilled workers is the norm now, and employers have no choice but to adapt to it if they want to survive.

It’s incredibly hard to hire employees who will stay long enough to be called long-term assets. Given this scenario, it makes a lot more sense to retain the existing employees and not lose them easily.

WIth that in mind, let’s dive into the do’s and don’ts of employee retention that will help you thrive in these challenging times and come out a winner.

Employee Retention Do’s

Set them up for success

From the very first day they report to work, you need to start their journey as your long-term employee. Introduce them to the company’s vision, mission statement, culture, and the value you place on employee’s wellbeing and development (Just make sure it doesn’t sound condescending, or like bragging about how great your company is). Ensure that the employee onboarding is smooth, followed by effective training and mentorship.

Pro tip: Team up the new employees with an established ones, like a buddy program.

Compensate fairly

Every now and then, you might have hired an employee for a remuneration that is lesser than the industry standard, probably because the employee was in desperate need of a job and the salary negotiations went your way. But it won’t work for long and sooner than later you will need to revise it if you want to earn their loyalty. This is especially critical if that employee is performing well.

Support work-life balance

Let the employees continue working from home even in the post-pandemic world, if they want to, as long as the work happens properly. Also, encourage them to plan their time off so that they are regularly recharged and remain productive. Respect their priorities, as long as they respect the job requirements.

Keep them well-motivated

Have a fair Reward and Recognition program in place which will ensure that the employees that do well feel valued, and those that are not doing so well have a motivation to earn that recognition. Even a good informal pat on the back (or just a genuine “Good job!”) will go a long way in earning their trust and loyalty.

Give regular feedback

Feedback should not be an occasional or a once-a-year thing. It needs to be an ongoing activity in which the employees are constantly made aware of their strengths and opportunities. This will not only improve their performance, but the clarity of purpose it brings will also increase their longterm commitment to the company that cares for their progress.

Promote them internally

Whenever there is an opening for a position, consider promoting the existing employees. As long as you have a clear criteria, such as a minimum tenure and performance standards, this will prove much beneficial than hiring externally, both in terms of cost and performance of the person in that filled position.

Hire through employee referral programs

The strategy of hiring through employee referrals will have a twofold benefit: On one hand it will bring you candidates that have the right qualifications, and on the other hand it will keep the referring employees feel valued and engaged. The employees thus hired will have come in with a positive image about your company because they have been referred by their friends, and therefore they will work with that extra sense of commitment. They will be easier to train and are more likely to turn out to be long term assets.

Employee Retention Don’ts

Don’t have rigid working conditions

Employees who are micromanaged are unlikely to be proactive or creative. Avoid being rigid with things such as the login time, working hours, and daily task reports. Also you need to align the managers with this approach towards leading their teams.

Don’t discourage them from asking questions

Autocratic people management is bound to fail. If an employee is asking questions, it’s actually a positive sign. For example, if she is asking about a certain aspect about the company’s vision, give her a clear answer. There is no reason to feel that she is challenging your competence as an employer.

Don’t invalidate their opinions

People who feel that their opinions are valued will trust and respect those with whom they are shared. It’s not just about money, because we humans need emotional validation as much as we need wealth. So when an employee expresses an opinion, good or bad, you need to treat it with respect.

Don’t be offended by negative feedback

Constructive feedback never hurt anyone, even though it may leave a few egos bruised. So drop your ego and try to understand why there is a negative feedback, and resolve it. It will benefit everyone concerned.

Don’t overlook the old ones in favor of newer ones

Performance over a period of time has no substitute and the freshness infused by the new employees should complement it and not be a source of conflict. So when a new employee comes in and demonstrates value, just make sure that you do not ignore the old employees who have been contributing to your company’s success over the years.

Don’t wait until they come to you with their concerns

A very common mistake committed by HR managers and team managers alike is that they wait until the employees raise the concerns. Not all employees are assertive enough to complain early enough when a problem starts. So don’t wait until it’s too late. Keep doing a dipstick and stay aware of potential problems that would impact the work deliverables, or even the work atmosphere.

Surviving the Great Resignation

Being armed with the knowledge needed to survive the Great Resignation and thrive even in the current conditions is one thing, and putting this knowledge into action is another. As an employer, you need to aim at achieving profitability while earning employee loyalty. It’s a bit of tightrope to walk on, but it can be done without too much hassle if you have the support of your team, which includes the HR personnel, team managers, and recruiters.

Pro tip: Implement these employee retention strategies in not just managing retention of a few employees, but all of the workforce, including the management team and the support staff.