EMPLOYEE retention is a critical issue for organisations of all sizes. High employee turnover is costly in terms of time and money spent on recruitment and training, as well as the potential loss of valuable knowledge and skills.
To combat this issue, many companies have implemented various employee retention policies. In this article, we will explore some of the most effective strategies for retaining employees.
In Zimbabwe, retaining employees is challenging for most chief executives (CEOs). The challenges arise because the resources to dedicate to retention may not be available. Another potential downside is general feelings of inequity when you focus the retention policy on a select few employees. So, the question is, what should companies do to retain critical staff?
In choosing who should be included in your retention strategy, you must be careful how you select them. The major criteria are the impact of the role on the business, and second, the individuals must be performing above average.
It makes no sense to retain an employee simply because they are in a critical role when their performance is below standard.
Offer competitive remuneration — the best retention tool around salaries and benefits is to ensure that you are not too far below what the market pays for similar roles. If you do not have the resources to sustain competitive salaries, the best approach is to ensure you pay around the market's median and then drive performance. Anything lower than the median is unlikely to work. It is important to note that offering a competitive salary does not necessarily make the employee perform better. Instead, it makes the employee stay.
Opportunities for career development — Employees who feel they have career development opportunities are more likely to stay with their current employer. Training programmes, mentorship opportunities, and clear paths for career advancement can help employees feel invested in their careers and committed to their organisation.
Positive work environment — Working in a toxic environment is emotionally draining for employees. Employers must work on creating a positive work environment. It is crucial for retaining employees. This includes fostering a culture of respect, providing opportunities for social interaction among employees, and ensuring that employees feel valued and appreciated.
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Recognition and rewards — Put in place a systematic mechanism for recognising and rewarding employees for their hard work and achievements can go a long way in retaining them. This can include bonuses, promotions, or even verbal recognition for a well-done job. Research has shown that employees, who feel recognised and appreciated are more likely to stay with their current employer. I have noticed that most bonus schemes are useless because the amounts paid are insignificant.
Culture plays a key role in employee retention. A company's culture encompasses its values, beliefs, attitudes, and behaviours that shape the work environment. For purposes of retention, culture is how you treat your employees. When employees feel comfortable and happy in their work environment, they are more likely to stay with the company for an extended period.
Conduct stay interviews: Stay interviews are conversations with current employees about what they like about their job, what they would like to change, and what would make them leave the company.
Address workplace issues promptly: Attend to issues raised by employees without delay, which can prevent them from escalating into larger problems that may lead to employee turnover.
Encourage employee involvement: Involve employees in decision-making processes or company initiatives to make them feel valued and invested in the company's success.
Staff loans are a type of employee benefit that can be used by organisations to retain their employees. Staff loans are essentially personal loans offered to employees at a lower interest rate than they typically receive from a bank or other financial institution. Employees with access to affordable loans through their employer may be more likely to stay with the company longer. This is because staff loans can help to reduce financial stress and provide employees with the resources they need to achieve their personal and professional goals.
Leadership quality plays a significant role in staff retention. Good leaders inspire their team members to work towards a common goal, provide constructive feedback, and create a positive work environment. Employees tend to stay longer in organisations where they feel valued, respected, and supported by their leaders.
- Nguwi is an occupational psychologist, data scientist, speaker and managing consultant at Industrial Psychology Consultants (Pvt) Ltd, a management and HR consulting firm. https://www.linkedin.com/in/memorynguwi/ Phone +263 24 248 1 946-48/ 2290 0276, cell number +263 772 356 361 or e-mail: mnguwi@ipcconsultants.com or visit ipcconsultants.com.
