Employee engagement and retention are among the most important issues facing enterprises today. Several studies have shown that the cost of losing an employee can be as high as 200% of their annual salary, with an average statistic of 33% of their yearly wage. If your employee leaves, you lose the work that person could have done for you and all the time and money invested in training them. In addition to these costs, there is also a considerable impact on employee morale when an employee leaves. When people are let go or quit, it creates an environment where employees feel less secure and more worried about their job security. This can have a negative impact on productivity and morale throughout your enterprise.

So how can you keep your employees engaged so they don’t feel insecure so you may reduce employee attrition? This article discusses ten surprising facts about employee retention that you can utilize to develop an effective employee retention strategy.

1. Improve Employee Engagement and Retention

Studies show that employees who feel engaged are three times more likely to stay at their company for more than five years than employees who are not engaged. Employee engagement survey software can help you keep track of your employees’ engagement levels and allow you to take action if you notice misalignment between your employees and your enterprise. Engaged employees take fewer sick days and create fewer problems for management. Increasing employee engagement directly corresponds to employee retention.

2. Effective Management is Important

Studies show that up to 40% of employees who do not rate their supervisor’s performance highly have applied for new jobs within the last three months. Ineffective management can make it up to four times more likely your employee will quit. Often bad leadership and poor management skills are responsible for employee attrition.

A good employee retention practice is to build trust with your employees while improving management skills through one-on-one meetings. Any issues can be discussed directly with employees and managed without becoming overwhelming for both parties. Getting to know what employees are facing individually will help reduce employee attrition.

3. Employees Want Recognition

Employees who do not feel recognized for their contributions are two times more likely to seek job opportunities elsewhere. Studies have shown that up to 79% of people who quit their jobs list a lack of appreciation as the main reason in employee attrition surveys.

If you want great results, it is essential to recognize your employees frequently so they know they are appreciated. A good employee retention program includes a recognition program where employees are provided recognition either through financial rewards or enterprise-wide recognition such as awards.

4. Continuous Feedback makes a Difference

Clear and open communication is the key to understanding the needs of employees and managers alike. Only 30% of employees, on average, say their employer acts upon their feedback.

Employee retention tools can include 360-degree feedback where employees are provided consistent feedback from peers, managers, and customers. This feedback highlights points of improvement and provides your employees guidance on how they can contribute to your enterprise.

5. Clear Onboarding Processes Improve Employee Happiness

According to a recent survey, employees are 23% more likely to retain their jobs if their roles and responsibilities are clearly explained. An onboarding strategy is the first step of an employee retention process. Disorganization from the start of an employee’s experience will impact their work negatively.

Ensure you have strong communication during your onboarding process and encourage asking the right questions so that your employees are well informed. New employees face different challenges than long-term employees, and aligning them with your enterprise as early as possible is always recommended.

6. Career Growth Retains Talent

Organizations have seen that employees who feel they are growing are 20% more likely to be working there in a year. Similarly, a lack of advancement or improvement in skills causes your employees to lose morale and discourage them from staying on.

Having professional growth opportunities explained to employees early on is a factor that can reduce employee attrition. In addition to highlighting career paths, delivering on them will encourage your employees to stay and increase employee retention.

7. Align Employees with your Vision for Better Results

Studies show that employees who feel that an enterprise has a higher purpose than merely profits are 27% more likely to stay. A specific vision and working in a team with a mission are more likely to yield an experience that employees are satisfied with.

A critical employee retention objective should be to align your employees with the vision of your enterprise. A sense of purpose leads to higher employee morale, motivation, and job satisfaction, reducing employee attrition. Consider implementing a core mission statement that will allow your employees to feel like they are doing something meaningful.

8. Lack of Respect Increases Employee Attrition

According to research, employees who say that a lack of respect between colleagues is 26% more likely to quit their jobs. Trust between employees, co-workers and managers is vital to increasing job satisfaction. Toxic work culture can push away talent despite other benefits an employer may offer.

Trust-building exercises should be encouraged through bottom-up and top-down management so that employees feel like their voices are heard and acknowledged.

9. Work-life Balance is Important

Employees who rate their work-life balance highly are 10% more likely to retain their jobs. Employee burnout is a major contributor to employee attrition. It has mental, physical, and emotional repercussions that not only negatively impact performance but can drive employee attrition.

Opportunities for remote work and reasonable work hours are factors employees look for when deciding whether to stay at an enterprise. Encourage your employees to set goals to maintain a healthy work-life balance to increase job satisfaction and employee retention.

10. Importance of Workplace Ethics

Unethical conduct is also a contributor to employee attrition. Studies show that 79% of people will not accept new offers from an enterprise that did not take action against sexual harassment, even if the salary is considerably higher.

A strong work ethic in your enterprise is important as it garners trust from your employees and enables them to feel like they are not participating in activities that go against their morals and ethics.

Conclusion

Employee retention is a priority for any enterprise. The cost of losing an employee is high, and holding on to them can be even higher if you do not do it right. Some of the facts in this article may be surprising but true nevertheless. Learning how to reduce attrition rates and increase employee retention is an excellent step to building a solid organization.