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Employee retention: the 8 best strategies for 2023
The labour market is tight. Good news for jobseekers, but bad news for organisations, as they must deal with – among other things – high turnover rates. In the UK, this rate averages around 15% per year. This is a large expense for organisations. Retention strategies are therefore more necessary than ever. OpenUp has put together a list of the best employee retention strategies your organisation can adopt this year.
Voluntary employee resignation is one of the largest hidden costs for organisations. When employees leave, so does their knowledge. Finding replacements, and training them, costs time and money. According to estimations, this is usually 1.5 to 2 times the employee’s annual salary.
Investing in retention pays off. And there’s a lot you can do, considering 52% of those who resign say their organisation could’ve prevented their departure.
1. Analyse the reasons why staff are leaving
You can only find a solution if you know the cause. Make sure to schedule exit interviews with departing employees. Include the following topics, as a 2021 study found these are the top reasons for voluntary resignation:
- Lack of career opportunities (22%)
- Work-related reasons, including stress, access to resources, tasks and feeling fulfilled (11%)
- Health and family (11%)
- Work-life balance (11%)
- Salary and rewards, including job perks (10%)
- Relocation (9%)
- Management (8%)
- Corporate culture, physical environment, mission and values (7%)
2. Hire the right people
The ultimate retention strategy. Hire people who are unlikely to leave. Look out for the following:
- The skill set should match the position, or the skill set can easily be developed.
- The applicant doesn’t switch jobs frequently.
- The position fits logically within the applicant’s career trajectory.
- There is a good match with company culture, or the applicant can positively influence this. (Diversity is important. Never reject someone based on background or identity).
- There is a good match with the organisation’s vision and values, or the applicant can positively influence these. (Purpose is important).
- The applicant is happy with the salary and rewards.
3. Design a good onboarding process
Most people resign in their second year, which suggests they didn’t have a good start. A well thought out onboarding process prevents this.
Onboarding goes beyond training. It’s also about feeling safe, developing strong bonds with new colleagues, being aware of resources available, increasing motivation, feeling part of the organisation’s mission, and more.
Read more on the importance of onboarding here, or read OpenUp’s extensive guide on designing a good onboarding process.
4. Map out growth paths
It’s all about long term perspective. When employees have regular milestones to work towards, they stay (motivated).
A growth path consists of challenging tasks, new roles, more responsibility, training and education, but also a growing salary. Some organisations, including the Big Four, make these paths very concrete and measurable.
5. Offer professional external guidance and support
Stress, challenges with mental health, bad work-life balance, and lack of access to the right resources are commonly-cited reasons to leave. These are all preventable reasons.
OpenUp helps employees build resilience against everyday challenges, available anytime and anywhere. Every employee has access to anonymous and immediate support. From individual and group sessions with a psychologist, to check-ins and self-guided care.
For you as an HR professional, there is also (free) support. Join our roundtables and grow in your role.
6. Prioritise flexibility
A healthy work-life balance is important. During the pandemic, we saw the benefits of a better balance. Employees want to hold on to these: less time spent on commuting; more time spent at home.
Give employees the option to work from home several days per week, and – when the job allows – be flexible with working hours.
Learn more on this topic in OpenUp’s article on creating a healthy work-life balance.
7. Train your managers
8% of employees leave because of the professionalism, knowledge, expertise and communications methods of managers. Good managers affect employee retention.
People often get promoted to manager because they’re good at their jobs, but being a manager is a whole new ball game. Train your managers well in their new role, and give them the support they need.
8. Focus on corporate culture
Reflect on your workplace culture. The most important elements for a healthy culture are:
- A clear vision and objectives, so everyone understands what they’re contributing to.
- Inclusion and respect.
- Transparency and open communication.
- Space for employees to engage with their own ideas and initiatives. Or: a sense of ownership and responsibility.
- Supportive HR professionals and managers who truly listen.
