Employee Retention Strategies

There are many reasons for an employer to want to keep a good employee around, including the fact that retention leads to having more staff with higher levels of organizational and job knowledge onsite, and it avoids the expense of the hiring process.

But what types of strategies may be used, and do they all work?

Competitive Compensation and Benefits

A competitive salary is vital to employee job satisfaction and retention. However, some employers also offer lucrative sign-on bonuses for high-demand positions. Although sign-on bonuses can be effective in attracting new employees, they usually don't help with retention. If money is all a job offers, one might as well leave and earn another sign-on bonus elsewhere.

However, benefits such as health insurance, vacation time, retirement contributions, and educational cost support or reimbursement are important considerations. According to research published by the Robert Wood Johnson Foundation, 84% of nurses reported that benefits were very important or somewhat important in their decision to stay in their current position.

Employers can tailor benefit packages to meet their workers' needs. For instance, employees with young children may be attracted by additional maternity or paternity leave benefits, childcare benefits, and time off to care for sick family members. Older employees may appreciate incentives like retirement benefits and matching pension contributions.

New Employees

Retention efforts should begin on an employee's first day of work. An EMSResponder.com article quotes a study which found that healthcare workers began to think about leaving 180 days into a new job, and half of them left after one year.

A comprehensive orientation program is the first step to help new employees settle in. New workers can also benefit from additional guidance in their first few months on the job. One effective strategy is to assign a mentor to every new employee, so that the new employee will always have someone to turn to with their questions and concerns. Managers are also encouraged to meet with new employees every two to three months to make sure that they are receiving adequate guidance.

Workplace Evaluations

Employers need performance reviews too! Anonymous employee satisfaction surveys can provide a snapshot of the workplace's strengths and weaknesses. The survey should include multiple choice questions that can be quantified (e.g., "On a scale of one to seven, do you agree or disagree with the statement 'I have all the equipment and support I need to do my job?'"), as well as open-ended questions (e.g., "What changes would you like to see over the next year?").

And of course, simply taking surveys is not enough. Employees have to know that their concerns are being taken seriously and are being addressed.

Flexible Scheduling

The option of arranging one's own work schedule and/or working non-traditional hours are very attractive for many employees, especially those with family commitments. Some popular flexible scheduling options include:

Flex time: This arrangement allows employees to change their schedule within specified guidelines. Flex time can apply to an individual worker or to a unit.

Annualized hours: Employees can choose, within certain boundaries, the days of the week and the hours they work, as long as they work a specified number of hours in a year.

Compressed workweeks: Employees work longer shifts in exchange for a reduction in the number of days they work.

Job Sharing: Two employees share the job duties and hours associated with one full-time position.

Reward Loyalty

Most workplaces offer raises and more vacation time for long-time employees. Some employers also offer retention bonuses or longevity pay.

Room to Grow

Employees who have sufficient opportunities for growth and advancement at their current workplace will be less likely to change employers.

Continuing education is an important part of professional growth, and will help employees expand their skills and knowledge. Employers can make it easier for workers to pursue further education by offering tuition reimbursements and paid time off for classes. Larger employers can also host on-site workshops and seminars for staff members.

Whenever possible, promote from within, rather than hiring from the outside.

Experienced and capable staff members should have the opportunity to play a greater role within the workplace. Additional responsibilities may include mentoring new staff members, serving on committees, and offering input on workplace policies. Appropriate pay raises and recognition should accompany any significant changes in job duties.

Perhaps the Most Important Factor in Employee Retention is …

Have good managers and supervisors! According to many polls, the number one reason people leave their job is a bad boss. Therefore, ensure that supervisors have the skills and knowledge to help them be good supervisors – to be clear in expectations, to provide constructive criticism, to keep staff informed, to encourage input and feedback from staff, to treat all staff fairly, and to encourage and assist staff to develop, grow, and be successful in their work.

Also see our articles: • Model Employers • Whiny Workers, Happy Workers • Throw Money at It?

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