Strategies for Employee Retention

As a leading provider of an employee financial wellness solution, PayActiv has studied the impact of our services on employee retention. We’ve also compared it to other employee retention strategies. Here we have 4 effective ways you can effectively and measurably improve your employee retention rates. Once implemented, these strategies will create a work environment that caters to all levels of Maslow’s Hierarchy of Needs.

Offer Professional Development and Challenges

In many careers employees can find themselves stuck. There is no advancement and no challenge. An employee can feel like they’re being forgotten. Making sure your employee is engaged is a surefire way to keep them around longer.

Employees want to grow and advance. Investing in your worker’s career development will lead to higher satisfaction overall.

Make a plan and document it. How are you going to develop your employees? Will you offer mentoring programs? Are you going to promote from within more, incentivizing your employees with dreams of reaching that next big position?

Even better? Ask your employees what they want. What do they want to learn? Where do they feel they could use help? Grow loyalty for your company, by showing you truly care for your employees.

Optimize Your Onboarding

This is one strategy employers are often forgetting to leverage, and it’s coming at a high cost. Nearly 33% of new hires look for a new job within their first six months.

Onboarding is much more than signing paperwork and a tour of the workplace. This delicate time is about acclimating your newest asset to the company and expressing your company’s goals. Be sure to assess where their greatest strengths lie so they feel fulfilled, utilized, and valued.

From the beginning, your employees must feel like they’re boarding the right train. This is the first impression a new hire has about your company culture. Ensure your new employee feels as though they are a valued team member who is an integral part of the company culture. Follow up with your employee regularly. Checking in shows you value their input and have a vested interest in their well being. Get regular feedback and ensure your employees stay by going that extra mile.

Create a system that reminds you to follow up with your new hires. Failing to see what they need periodically within their first year is a surefire way to lose a valuable member of your team.

*If employees leave, remember to conduct a thorough exit interview. It’s important to understand why an employee is leaving and what you can do to reduce employee turnover in the future.

Create a Rewards and Recognition Program

Rewarding your employees for great work will not only incentivize them to perform well, but it will make them feel valued — something that’s important to keeping great employees.

Your rewards and recognition program should follow a fair system that completely avoids the possibility of “picking favorites”. It’s important that all employees feel their accomplishments are noticed. Pick a reasonable way to measure employee success during a pay period. It could be a certain amount of positive feedback. A certain amount of shifts in a row of not being late to work? Pick specifics that matter to your organization.

Then, decide what your rewards are going to be. Not all of your rewards have to be monetary. Gifting out plaques or trophies to put in their workspaces means a lot, too.

Employees who feel they’re truly appreciated won’t feel the need to look for opportunity elsewhere. Why would they? Show tangible gratitude for those who help your company thrive.

Offer a Comprehensive Employee Benefits Package

The most important factor that impacts everyone in the organization from the top to bottom, are the employee benefits. If your employees are worried about how they’re going to receive medical care or how they’ll feed their family while they wait for payday, there’s no way your company is their top priority. Their very basic needs must be met first. Are you offering benefits to improve their health? Their financial wellness? Their overall peace of mind?

Two perfect places to start is to offer health insurance and a financial wellness program. Physical wellness and financial wellness are the two most important things to any employee, and once those basics are covered, organization focus can begin.

Your financial wellness program should most importantly include earned wage access to reduce the need to use predatory cash advance services in between paychecks. When financial stress is reduced employees are motivated and focused on their work and growth.

Retention can seem tricky, the topic is nuanced and complex. However, it boils down to catering to your employees’ needs with the right strategies. You’ll see your retention rates rise.

To speak with a company who has proven results in increasing employee retention rates (by up to 30%) among PayActiv users, contact PayActiv today. We’re ready with a socially-responsible, holistic financial wellness program for your company and employees.