Employee retention has become a critical issue for businesses of all sizes, particularly in today’s highly competitive job market. While companies focus heavily on attracting top talent, they often overlook the importance of retaining employees once they are on board.
Amanda Harrold of A&S Recruitment explains how she is evidencing this issue: “Increasingly new candidates are coming to us and citing they feel undervalued, the working environment is far from pleasant, and they fear their job offers no career progression. Our job is, of course, to find new positions that address these issues, but employers also need to look at how this issue creates serious issues for their business. High turnover rates disrupt the workflow and cost organisations significant time and money in recruiting, hiring, and training new employees.”
Here, Amanda shares her thoughts on building a more stable and satisfied workforce.
1. Unpleasant Work environment
One of the most common reasons employees leave their current positions is unpleasant or toxic work environments. When an employer sets unrealistic expectations, lacks flexibility, and fails to provide a supportive atmosphere, it creates a breeding ground for dissatisfaction. We all spend a significant portion of our lives at work, and if the environment is stressful or unwelcoming, it can lead to burnout and a desire to escape.
While appreciating that not all organisations are able to offer flexible working hours, employers do need to appreciate that today, employees value their work/life balance and mental well-being more than ever. So, the working environment needs to be positive, inclusive, and convivial.
New legislation regarding flexible working came into effect on 6 April this year, and this insightful article, featured earlier this year in Personnel Today, provides a full overview of the implications for both employees and employers.
What are the flexible working changes in 2024?
The new flexible working legislation removes the requirement that employees have 26 weeks of continuous service before they can make a formal request. This means the right to request flexible working becomes ‘a ‘day-one’ right.
Employees can also make two flexible working requests every 12 months, a change from the current single request. The Act will reduce the time limit for employers to deal with flexible working requests from three to two months, although this can be extended if the employee agrees.
2. A Career Without Growth
Employees are motivated by the prospect of growth and advancement. When no such clear paths for progression exist within a company, or employees feel they are waiting to fill ‘dead man’s shoes,’ they will feel stuck and unfulfilled. This can lead to frustration and eventually push them to seek opportunities elsewhere where their career aspirations are recognised.
Company training, mentorship schemes, and clear promotion pathways are all excellent ways to overcome this issue. Investment in such programmes helps further develop the employee and improves employee retention rates, saves recruitment fees, and creates a more skilled and motivated workforce.
3. Poor Benefits:
Financial remuneration is a significant factor in employee satisfaction, but benefits are equally important. When benefits are lacking, employees may feel that the company does not care about their well-being. Poor health insurance, lack of retirement plans, and minimal holiday time are just a few examples of inadequate benefits that can drive employees to seek better options elsewhere.
To improve retention, companies should ensure their benefits packages are competitive and address the diverse needs of their workforce. This might include offering flexible working arrangements, mental health support, and professional development opportunities.
4. The Power of Recognition
Feeling undervalued is a very common reason why employees leave their jobs. When hard work and dedication go unnoticed, employees may feel that their contributions are not appreciated, leading to disengagement and a desire to move on.
Recognition can take many forms, from financial rewards to simple gestures of appreciation. Regular feedback (in a forum that provides employees with an opportunity to voice concerns), employee recognition programs, and creating a culture of appreciation can go a long way in making employees feel valued. When employees know their work is recognised and appreciated, they are likelier to remain loyal to the company.
Amanda adds, “Employee retention is about so much more than simply keeping workers from leaving. It’s about creating an environment where employees feel valued, supported, and motivated to grow within the company. And before everyone says implementing such schemes all costs money, those enlightened companies embracing such strategies are already reaping the benefits – reduced turnover costs, including recruitment fees, improved productivity and a positive workplace culture.”
Originally posted on Porttalk (https://porttalk.co.uk/the-importance-of-employee-retention-in-todays-competitive-job-market/)