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There’s an employment crisis going on in this country. Last year, America experienced what is known as the Great Resignation. In April 2021, 4 million people quit their jobs, which is a record high for a single month. This is a serious situation that requires companies to develop stronger employee retention strategies.
It costs a lot of money to post job ads and train new workers (anywhere from one-half to two times the employee’s annual salary, in fact). Cost-wise, it’s better for companies to keep the employees they have than to hire new ones. But how do you convince current employees that the grass isn’t always greener elsewhere? How do you nourish your own metaphorical soil to ensure that the grass is greenest at your own company? Here’s how to ensure employee retention.
1. Pay Competitive Wages
Many companies are seeing high employee turnover due to low wage-rates. According to new analysis, 44% of American workers qualify as low-wage workers, with a median annual salary of just $18,000. In today’s workplace climate, with employers trying anything to attract and keep talent, these low wages won’t cut it. A good employee retention plan includes decent, or even competitive wages.
Think of money like the water and sunlight that are necessary for green, healthy grass. Your employees are just as in need of money to survive and live a healthy, balanced life! While not every company can afford six-figure salaries for every employee, many companies need to do their due diligence in paying fair wages based on the employee’s duties, as well as the market.
Ensure your employees are making enough to satisfy their needs and research what workers in your local area are earning for similar positions. If you can’t pay more money right away, it could help to consider offering bonuses at the end of each quarter.
2. Improve Benefits and Perks
Money isn’t the only thing workers are demanding. A strong benefits package should also be part of a company’s employee retention strategy. Just as fertilizer can give grass the added nutrition it needs to really thrive and show off, benefits and perks can provide the extra care employees need to succeed. Companies that neglect things such as medical benefits, paid time off, and retirement plans put themselves at a strong disadvantage.
More and more companies are allowing employees to work from home and offering unlimited vacation. This allows employees to enjoy a better work-life balance. Flexible work schedules and parental leave are also popular options. If your company is able to sprinkle sought-after benefits and rewards throughout the soil of your company, employees will be more likely to expand their roots and stay for the long haul.
3. Increase Recognition
Most workers claim they would be more likely to stay in their current position if they were recognized more often. Employee recognition can help you reduce turnover and, contrary to what you may think, you don’t have to spend any money at all. Here are some straightforward ways to help employees feel appreciated:
- Written or verbal praise can really make a person’s day and go a long way to making employees feel appreciated.
- Post a shoutout on the company’s Slack channel or on Microsoft Teams. Send an email to the whole company recognizing an employee’s efforts.
- Hand out awards such as a paid day off or the ability to leave early. Provide a gift card or employee lunch as a pat on the back.
There are many ways in which recognition can drastically improve employee retention, and you can think of this as regular grass maintenance. Cutting the grass every week is actually vital to healthy vertical growth. That consistent care is just like how regular recognition is vital to the wellbeing of your employees (that’s a stretch, we know—grass metaphors are hard).
4. Make Work Fun
All work and no play can make the workplace dull and boring (just like grass is boring without outdoor activities on it…yep, we’re sticking with that). That’s why amping up the fun is a good employee retention idea.
A strong company culture gives employees the freedom to show off their unique personalities. You can accomplish this through parties, summer outings, fun competitions, and funny traditions. Have special dress-up days. Decorate the office for holidays. Set aside fifteen minutes a week for swapping jokes or funny stories (for example: “I’m afraid for the calendar. It’s days are numbered.” Good, right?), along with good news that is not work-related. The possibilities are endless.
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Keeping good employees is not always easy. But just like keeping the grass greener on your property, you can do some basic things to really help your employee grow and succeed. Awardco has employee retention ideas that can help your company boost morale and loyalty. Get a demo today!