5 Ways to Improve Your Employee Retention Strategy

What’s New in Employee Retention Strategies for 2023? 

An employee retention strategy aims to increase a company’s year-over-year retention by providing methods to improve employee morale and, ideally, encourage employees to remain at the company. 

Organizations that don’t have an effective employee retention strategy may suffer from high turnover and the associated adverse effects that impact culture, revenue and customer service.

Competitive Pay

Attractive and competitive pay not only involves how much an employee gets paid but how often. Fifty-nine percent of employed Americans, including 70% of hourly workers, say they would benefit from getting paid more frequently than they currently do. 

Better access to earned wages through on-demand pay helps employees to manage and overcome their financial stress, avoiding negative effects on productivity and morale. Sixty-seven percent of users say DailyPay has helped them reduce financial stress. 

Outstanding Employee Benefits  

Eighty-seven percent of employed Americans say it is at least somewhat important that their employer offers a retirement savings program, such as a 401(k) account. 

In addition to the standard benefits package that employees expect, a comprehensive benefits package that goes above and beyond competitors will give a hiring edge and contribute to employee appreciation and retention.

Offering on-demand pay as a benefit can help employers better serve their employees. 

Support Employee Wellness  

Employees are looking for ways to improve their work/life balance and reduce their stress levels. When employees are dealing with personal or financial stress, they may perform their job poorly or with less efficiency.

Employers can further help employees through financial wellness support. This can include personalized financial counseling, financial education courses, debt reduction programs and support groups. 

Additionally, companies can offer employee wellness programs that include fitness perks, support work-life balance and more. 

Employee Growth and Development 

Supporting employees in their career growth and development will help set them up for success. 

According to a 2021 Gallup report, 48% of American workers would switch to a new job if offered skills training opportunities and 65% of workers believe employer-provided upskilling is very important when evaluating a potential new job. 

Employers should consider how they can assist employees to upskill and progress their careers within the company instead of pursuing outside opportunities to further their careers including leadership training courses and classes. 

Rewards and Recognition

Recognizing an employee for their hard work can play an important role in motivating and retaining employees. 

According to the Harvard Business Review, recognition can significantly increase intrinsic motivation, performance and retention rates.

Employers should consider how to improve their reward and recognition programs with meaningful rewards that tangibly help employees. Real-time cash rewards give employees instant payments instead of a gift card that may cause compliance issues for employers. 

Recognize and incentivize employees with cash rewards in real-time with Reward by DailyPay. Reward helps employers to leverage the power of DailyPay to increase retention and engagement even further while driving behaviors that matter most to your business.