What is retention strategy?

A retention strategy is a plan that organizations   create and use to  reduce  employee turnover , prevent attrition, increase retention, and promote employee engagement .

While some turnover is inevitable, creating a retention strategy to prevent voluntary turnover as much as possible   can save the organization time and money. After all, training and developing your existing employees is much easier and much less expensive than constantly hiring new people.

Benefits of an Effective Retention Strategy

The goal of a retention strategy is just as it sounds: to retain employees. However, an effective retention strategy is about more than just keeping people in your organization for longer. Other positive outcomes include:

• Low Turnover
• Lower recruitment costs
• Increased employee productivity
• Higher  employee satisfaction
• Strong working relationships
•  Reduced work-related stress
• Less fatigue

Retention strategy elements

When developing an employee retention strategy,  it's important to identify the areas of the employee experience  you can really impact and focus your efforts on. Here are some places you can start.

Work environment

Improving the organization's work environment as part of a retention strategy may mean creating more quiet spaces where employees can concentrate, opening up office spaces to encourage collaboration, or   offering flexible work hours and work-from-home options.

The work environment should encourage employees to do their best work and be a place where they can focus, collaborate, and feel welcome. This should be true for both the physical environment for employees working in an office and the digital environment (including collaboration platforms and hardware) for remote or hybrid employees.

Company Culture

Culture is what it feels like to work at your company. Do employees feel supported, empowered, and engaged? Does their work support a larger purpose? Can they see the impact of their efforts?

Your organization should cultivate a  company culture  where employees feel welcome and want to stay, especially considering that more than half of people who left their jobs in 2021 cited feeling disrespected at work as a reason for leaving their previous job.

Employee Benefits

Providing competitive  employee benefits  can also increase employee retention. Healthcare is one of the most important benefits an organization can provide to employees; however, other high priorities include more flexible hours, vacation time, and remote work options.

In addition, choosing benefits that align with your employees' values ​​can also increase employee satisfaction. For example, if employees value community involvement, consider offering paid time off for volunteer work. If employees value education, consider providing tuition reimbursement.

As long as you understand the needs and preferences of your employees, the possibilities are endless.

Professional development

 Professional development is a priority for  many employees, especially millennials . Providing employees with opportunities to learn and grow in your organization can encourage them to stay longer.

Professional development can include regular training, access to online workshops and conferences, tuition reimbursement, and more. There’s no better way to show your employees you value them than by investing in their future and giving them the tools to move forward.

Awards and recognition

No one wants to feel unappreciated. Employees who feel their hard work and great results are not being recognized will be more likely to leave the company. A  culture of recognition  demonstrates appreciation through awards and heartfelt thank yous – as well as rewards such as company gifts or monetary prizes. Even something as simple as a kind note or shout-out goes a long way in building goodwill and improving retention.

Creating a retention strategy isn't just a good idea if you're facing higher-than-average turnover. It's a good idea for any organization that wants to improve its culture, employee experience, business results, and more.