7 employee retention strategies to reduce staff turnover

No matter the industry, staff turnover is an unavoidable part of doing business. In recent years, many companies have seen departures grow, so implementing employee retention strategies has become increasingly important.

As a result of the pandemic, many people rethought what they wanted to do with their lives. Some looked for improved opportunities or schedules that better fit their needs, and others began to do something entirely new, including starting their own business.

This led to droves of professionals leaving their roles in 2021 — a phenomenon for which management expert Antony Klotz "The Great Resignation."

The pattern was first noted in the United States, with the retail, food, and hospitality sectors hit particularly hard by voluntary departures, but it quickly spread worldwide and to different industries.

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The pandemic had forced many companies to rethink how they do business, and gave people a taste of remote and hybrid working, which many were reluctant to give up when employers began to call them back to the office.

Meanwhile, the pandemic also saw increasing awareness around employee wellness and work-life balance, leading many professionals to begin to demand more from current and potential employers.

As a result, companies were forced to better tune into the needs of thier people, and began seeking to retain staff by offering training, opportunities for advancement, additional incentives, and work flexibility.

With growing understanding of the value of human capital, solid employee retention strategies are rising in importance.

What is employee retention?

Employee retention relates to the proportion of employees who remain with an organization for a given period. The longer professionals stay with a company, the higher the retention rate.

While some departures are an inevitable part of working life, an ability to retain more people is generally seen to reflect positively on a company, because it suggests that its employees are satisfied with their roles and environment.

Staff turnover is another measure of retention, referring to the proportion of people leaving an organization, and usually needing to be replaced. When the departure of professionals occurs at a faster rate than they can be replaced, this is known as employee attrition.

Employee attrition was a significant problem for many businesses during The Great Resignation, because an inability to replace workers quickly enough inevitably affected service levels and the smooth running of normal operations.

When professionals stay with a company longer, teams tend to work better and be more productive, while the company avoids the costs associated with finding and training new talent. Reducing turnover to zero is almost impossible, but keeping it low and avoiding attrition can be critical to keeping the business viable.

If someone is comfortable with their job, in an environment where they feel happy, motivated and rewarded, they are likely to stay. Effective employee retention strategies work best when employers understand and recognize the needs and wants of their workers.

What are employee retention strategies?

Employee retention strategies are a series of steps that companies develop to reduce desertion rates and avoid attrition. These programs include policies that help organizations attract and retain qualified personnel.

A company's objectives are important for employee retention strategies but they should also address employees' specific needs. It's important to understand what factors can drive good workers to quit and how to motivate them to stay.