In a competitive job market with abundant opportunities, company loyalty and retention are slowly declining in the workplace. According to PWC’s Next in Work Pulse survey, 65% of employees are looking for new opportunities. In fact, 88% of executives surveyed stated their organization is experiencing higher turnover than normal.
Employee turnover can be costly for an organization. Here are five key factors that affect employee retention and how you can get ahead of the curve by addressing them.
1. Setting Employees Up for Success
ing employees in talent-fulfilling positions will motivate the employee and can benefit the organization with higher quality work and an increase in retention. Happy employees become ambassadors for your organization, promoting your product and your reputation as an employer to bring in new talent.
2. Work-life Balance & Personal Well-being
More and more, employees are expressing concern for “flextime,” allowing them the flexibility to manage their working hours rather than operating on the traditional 9-5 model. Flexibility will enable employees to focus on work-life balance while still getting their work done. Trust in your employees can set you apart from competitors when employee turnover and the job market supply are high.
3. Greater Stability and Job Security
Structural elements such as brand reputation, market positioning, company purpose, and growth strategy strongly influence an employee’s decision to stay with a company. If employees see value in staying at your organization long-term, they are less likely to search for new opportunities. Communicate—and demonstrate—the long-term value your organization offers so that employees can envision your company as part of their career trajectory.
4. Significant Increase in Income
With recruitment getting increasingly challenging, organizations are looking for ways to incentivize their employees to stay loyal. As one might expect, employees react positively to companies that reward quality work and company loyalty with salary increases. Establish a clearly defined growth track and reward system to discuss with potential employees upfront during interviews and periodically at goal-setting meetings.
5. Great Company Brand Reputation and Culture
How your organization is viewed externally is often referred to as employer and industry reputation and can significantly impact recruitment and retention. The industry reputation describes how well a company is positioned within its market and the quality of its value proposition. Employer reputation measures the quality of a given company as an employer.
Your company culture can play a massive part in your organization’s reputation. Keep your culture strong by always being willing to adapt, update, and improve conditions for employees. Establish credibility within your industry to attract potential candidates and cultivate company culture to promote a positive employer reputation.
Source: Bernie Portal