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Employee retention is a critical challenge faced by many organisations, particularly in today's competitive job market. Losing top talent not only impacts an organisation's productivity, but it can also be costly to replace employees. Not to mention the disruption this causes across team dynamics and the impact on employee morale. With this in mind, it's essential for organisations to focus on strategies to improve employee retention rather than simply focussing on ways to find the best talent.
In this blog, we will explore the importance of improving employee retention rates, and how you can do so right from the off - within your recruitment strategy - as well as later down the line. We’ll identify several key strategies for retaining top talent, helping you to create a more stable and committed workforce, reduce turnover costs, and increase overall success.
But first -
Why is employee retention important in recruitment?
Employee retention is crucial in recruitment because it directly impacts an organisation's ability to maintain a productive and efficient workforce. Losing top talent can be extremely disruptive, and replacing your experienced employees who understand the nuances of your business can take significant time and resources. On top of a decrease in productivity and low morale, this can even lead to a wider negative impact on your organisation's reputation and make it difficult for you to build a positive company culture and establish a cohesive team dynamic.
But, employee retention isn’t just about ensuring things like their work-life balance and professional development post-hire. Managing employee satisfaction begins just as your hiring strategy does. Having a strong employer brand, offering regular communication and providing tangible feedback during the recruitment process all contribute to the overall success of your retention program. In short, it’s about starting as you mean to go on.
6 reasons why employees leave and how to address them
Sometimes, employees leave amicably, simply because they’re ready to move on. But organisations with inexplicably high employee turnover rates may need to assess some of the potential reasons and identify patterns. Understanding why employees are leaving can help companies recognise whether anything can be done to improve employees’ job satisfaction.
Let’s take a look at some of the most common reasons why employees leave a company, and how you might address them:
- Lack of growth opportunities: Employees want to know that they have a future with the company and that they can be supported in their professional development. Organisations can address this by creating career development plans, offering training and development opportunities, and providing clear paths for career advancement.
- Poor management and leadership: Poor management and leadership can lead to low employee morale, high turnover rates, and a lack of trust in the organisation. Organisations can address this by investing in management and leadership development programs, providing training and support for managers, and fostering a positive work environment.
- Limited work-life balance: Employees want to be able to balance their work and personal lives, and organisations can support this by offering flexible work arrangements, paid time off, and other benefits that support work-life balance.
- Low compensation and benefits: Employees want to feel valued and compensated fairly for their work. Organisations can address this by conducting regular salary and benefits reviews, offering competitive compensation and benefits packages, and providing opportunities for bonuses and other incentives.
- Inadequate recognition and appreciation: Employees want to feel appreciated and recognised for their contributions. Organisations can address this by implementing employee recognition programs, providing regular feedback and performance evaluations, and creating a company culture of appreciation and recognition.
- Lack of diversity in the workplace: Employers failing to recognise diversity and inclusion as important factors in their recruitment strategies will likely see difficulties surrounding employee retention. Employees need to feel heard, represented and like they are valuable members of the team. Ensuring your recruitment and selection process is unbiased can support this movement and help you build a company culture centred around fairness and diversity.
| Mission / Values Alignment | Culture Fit Alignment |
|---|---|
| Passion for your company’s missionA shared approach to working/collaborating | A shared educational, cultural or professional backgroundSimilar demographic (age, social class etc)Mutual hobbies/interests |
| Mission / Values Alignment | Culture Fit Alignment |
|---|---|
| Passion for your company’s missionA shared approach to working/collaborating | A shared educational, cultural or professional backgroundSimilar demographic (age, social class etc)Mutual hobbies/interests |
| Mission / Values Alignment | Culture Fit Alignment |
|---|---|
| Passion for your company’s missionA shared approach to working/collaborating | A shared educational, cultural or professional backgroundSimilar demographic (age, social class etc)Mutual hobbies/interests |
Improving employee retention in recruitment and creating a positive company culture: at a glance
Keeping in mind the key reasons employees might leave an organisation, there are a number of different strategies that organisations can implement to improve employee retention in recruitment. Part of that, of course, is creating a positive, dynamic and forward-thinking company culture.
By implementing the below strategies, companies can create a culture that supports employee engagement and retention, which can help them retain top talent and achieve long-term success:
- Offer competitive compensation and benefits, such as health insurance, retirement plans, and paid time off
- Offer training programs, mentorship, and clear career paths can help employees feel valued and invested in the organisation
- Offer flexible work schedules, remote work options and family-friendly policies to help to reduce burnout and improve employee satisfaction
- Invest in training and development for managers and leaders to improve communication, decision-making and employee engagement
- Foster a positive work environment to help employees feel valued, supported, and motivated to stay with the organisation
- Provide regular feedback and recognition, such as performance evaluations, to help employees feel valued and appreciated
- Encourage open communication between employees and management to help create a culture of trust and transparency
- Support the retention program with an automated recruitment strategy, establishing your employer brand from the offset and giving human resources staff more capacity to focus on the wider elements of employee retention
Concerned about employee engagement as well as retention? Check out our latest blog post covering some of the ways you can support ongoing engagement of your staff.
Measuring and evaluating the effectiveness of employee retention strategies
So, you know some of the most common reasons why employees might leave an organisation, and you know about some of the strategies you can implement to avoid this happening - but how do you know whether those strategies are working over time?
Measuring and evaluating the effectiveness of employee retention strategies is a crucial step in the process of improving employee retention in recruitment. Through accurate analysis, you can determine whether your efforts are making a difference and identify areas that may require additional attention. Below, we outline some of the ways you could measure your retention strategy.
How recruiting with Applied can support employee retention
Employees are the backbone of your organisation, so investing in their retention is investing in the success of your business.
The first step to doing so is choosing a recruitment platform built on fairness and inclusion. Hiring candidates in this way will help you find staff that are directly suited to your role, and will also take away any risk of your hiring strategy being led by unconscious bias.
Employees in a role they are suitable for and that they enjoy are far more likely to be long-term assets for your company, meaning you can spend less time hiring replacement staff, and more time improving employee morale and motivation even further by investing in things like benefits and other forms of compensation.
Discover more about our leading recruitment platform by booking a free demo.
FAQs
How can employers use technology and data to support employee retention in recruitment?
At Applied, we’re committed to sharing the effects that technology can have on the wider recruitment strategy, creating a positive candidate experience right from the offset leading to increased job satisfaction and a lower turnover rate overall. With a smart talent management platform, companies can rest assured they’re hiring the most qualified and appropriate candidates for the role, which naturally improves employee retention by reducing the number of mismatched hires.
Of course, there are many other applications to consider - employers can use technology and data to identify trends and patterns in employee turnover, track employee engagement and satisfaction levels, and create targeted retention strategies based on data-driven insights.
Additionally, technology can be used to provide employees with flexible work arrangements and remote work options, which can increase employee retention rates.
What role do benefits, compensation, and work-life balance play in employee retention?
Benefits, compensation, and work-life balance are important factors in retaining employees. Providing competitive salaries, benefits packages, and work-life balance opportunities can help keep employees satisfied and engaged in their work.
What are some best practices for conducting exit interviews and gathering feedback from employees who are leaving?
Some best practices include scheduling the interview in a timely manner, providing a safe and confidential space for employees to share their feedback, and actively listening to and taking action on the feedback received.
What are some ways to promote diversity, inclusion, and equity in employee retention strategies?
Providing equal opportunities for growth and development, addressing unconscious bias in the workplace via a specially-designed applicant tracking system (ATS), and creating an inclusive and welcoming work environment.
Applied is the all-in-one platform for fairer, more predictive hiring - purpose-built to remove bias and reliably forecast job performance.
Start transforming your hiring now: book in a demo.
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