The Guide to Employee Retention

10 Proven Employee Retention Strategies for a Winning Workforce in 2024

Written by Amrita Kar | May 1, 2023 8:56:00 AM

We went through data of 700,000 employees across 250+ organizations

Here’s what came up, 

  • 23.9% of employees left an organization due to a lack of flexibility and work-life balance at work
  • 13.4% of employees left an organization because they were not satisfied at work.
  • 9.9% of employees left due to an ineffective manager or management style. 

The list of reasons goes on until it doesn’t add up to 100% and includes all kinds of factors ranging from mental well-being to discrimination. 

But here’s the real question. 

Could these exits have been avoided? Could these employees have been retained? 

Yes, they could have. Here’s how. 

What is an effective employee retention plan?

An effective employee retention plan is like a superhero that saves the day (and your employees). So, what makes a retention plan truly super?

1. Listening tool:

You need to have a powerful tool to listen to your employees' feedback and concerns. Let them feel heard, so they don't feel ignored or unimportant.

2. Empathetic managers:

Your managers should be well-trained and ready to receive feedback. They should be the Robin to your Batman, supporting and guiding your employees through any challenges they may face.

3. Leadership:

You need to have a management team that recognizes the importance of a good retention plan and is open to making necessary changes to improve it.

4. Resources:

You must be able and willing to provide the resources required to take action on your employees' feedback. It's like giving your superhero the gadgets they need to save the day.

5. Action:

Lastly, your managers need to have a bias for action, taking real-time steps to address issues and make changes. 

Benefits of an employee retention plan

Having an employee retention plan can do wonders for your company. Here are just a few of the benefits you can expect.

1. Increases productivity

When you have a solid retention strategy in place, you can focus on improving your existing employees' productivity rather than constantly searching for new hires and training them.

2. Reduces turnover 

The average cost to hire an employee is $4700. So let's not forget about the money you'll save through retention! 

Retaining your current employees and offering them opportunities for growth and development is much more cost-effective than always searching for new candidates. With a strong staff retention strategy, you can significantly reduce your turnover costs.

3. Improves employee morale and boosts loyalty

You'll see improved morale among your team. When employees feel valued and supported, they're happier and more satisfied with their jobs. And happy employees are more likely to stick around and work hard to help your organization achieve its goals.

4. Attracts top talent

When companies have a reputation for taking care of their employees, it can help attract top talent looking for a positive work environment and opportunities for growth.

We're not gonna sugarcoat it - retaining employees isn't always a walk in the park, especially considering the huge employee churn ratio that many organizations face. There are some real challenges you might face along the way. But don't worry, we've got your back! Here are a few of the biggest hurdles you might encounter.

3 Common employee retention challenges

1. High competition

Let's face it, there are a ton of other companies out there trying to snag your top talent. You'll need to come up with some seriously enticing perks and benefits to keep your employees from jumping ship.

2. Evolved employee mindset

Employees are no longer willing to stick around at jobs they hate just because it pays the bills. They want work that aligns with their long-term goals and makes them feel fulfilled.

So, if you're hoping to keep your employees on board, you better be ready to step up your game! No more poor communication with your team, no more stingy salaries, and no more rigid work schedules. And for the love of all that is good and holy, stop giving your millennials and Gen Z-ers those mind-numbing, repetitive tasks!

In short, it's time to give your employees a reason to stay. And that reason has to be more than just a paycheck.

3. Lack of growth opportunities

If you want to keep your employees from jumping ship, you've got to give them room to grow. That's right - no one wants to stay stuck in a dead-end job with no hope for advancement.

So, if you want to keep your employees happy and motivated, start thinking about how you can offer them exciting growth opportunities. Trust us - your bottom line will thank you for it!

Best Employee Retention Strategies for 2024

We have sub-classified them into three categories below:

  1. Strategies for Retaining Entry-level Employees
  2. Strategies for Retaining Top Performers
  3. Strategies for Retaining Long-Term Employees

Strategies for Retaining Entry-level Employees

Here are the retention strategies for employees working at the entry level: 

1. Flexible work arrangements

Most employees entering the workforce today belong to the millennial and Gen Z population. They consider work-life balance, work-from-home options, and flexible office timings a basic requirement for joining a company and staying with them longer.

2. Regular employee engagement activities

Entry-level employees need to be motivated regularly through engagement initiatives and team-building activities, like team lunches, post-work outings, or peer appreciation messages.

3. Public speaking opportunities

New-age talent entering the workforce likes receiving opportunities to be on stage or in the limelight. Public speaking, taking center stage in a meeting, or representing your company in an outdoor seminar can help retain them.

Strategies for Retaining Top Performers

Your company's top performers are trickier but also critical to retain. These employee retention techniques come in handy in making them stay with your company.

1. Continuous learning opportunities

Top performers are always looking for opportunities to grow and develop their careers. Offering them what they need makes them stay. Training programs organized internally or giving them discount coupons for online courses on other platforms serves as a great incentive.

2. Competitive pay

Most employees working in your organization can get lured by better pay packages. That’s why you need to stay at the top of the game by knowing your top performers’ worth and serving them adequate increments when needed.

3. Employee recognition programs

Your top performers deserve more than just a pat on the back. They need to know that their hard work is seen, appreciated, and celebrated! From shoutouts on social media to decorated desks, make sure you're giving your star players the recognition they deserve. Happy employees = a happy business. It's that simple.

4. Allowing inter-departmental transfers

Growth opportunities can also appear within your company for the top performers. Allowing them to move internally gives them a chance to do something they like or that challenges them to grow. This is a great way to retain them for the long term.

Strategies for Retaining Long-Term Employees

Employees who stick with you for a long time show that they like working with you. But it is equally important to invest in employee retention strategies for this lot, so they don’t start looking out.

1. Open-door policies

Being tenure-wise seniors in the company, they enjoy close proximity to their department heads and top management. Having an open-door policy shows that you welcome them and like hearing what they say.

2. Performance management system

Your long-term employees are the real MVPs of your company. They've been with you through thick and thin, and they've got the records to prove it. So when it comes to performance management, don't let occasional slip-ups overshadow their years of hard work and dedication

3. Regular feedback collection

Ever wish you could read your employees' minds…especially those who’ve been a long time with you? Yeah, us too. But since we haven't quite mastered telepathy yet, we've got the next best thing: Amber, the conversational chatbot.

With Amber on your side, you can finally hear from every single employee in your organization. That's right, no more relying on just a handful of feedback to gauge how your team is feeling. Amber is an AI-powered wonder bot that can chat with employees and gather valuable insights into their thoughts and feelings about work.

Employee Retention Best Practices 

1. Communicate clearly

It is important to clearly communicate your employees’ roles, expectations, and how their work contributes to and impacts daily business functioning. This clarity sets the expectations right from day one and prepares them for everyday situations.

2. Provide a positive work environment

It is challenging to create a growth-conducive work environment but it is one of the essential requirements for employee retention. Up to 10% of employees quit when work begins to affect their physical and mental well-being. 

3. Address employee concerns

Conflicts are inevitable, but timely resolution is key. Empower employees to voice their concerns and work towards the best solution.

4. Nurture managers to become leaders

Fostering leaders is complex but needed for retaining the best performers who deserve to be promoted to leadership positions.

5. Foster employee relationships

Your employees spend more time with their colleagues than with family. In fact, having friends at the workplace often becomes a reason for your employees to reject a job offer elsewhere. That’s why building a strong bond with them is important.

Many companies employ lucrative employee retention strategies that work wonders for their companies. Let’s look at one glaring example.

Data proves that timely and proactive interventions can retain top talent. For 700K employees, Amber data showed an 11-point increase in engagement when grievances were resolved. And 70% of at-risk employees who received real-time feedback didn't end up in People To Meet.

By implementing effective employee retention strategies, you can reduce turnover costs, increase productivity, and boost employee morale. Remember, a happy and engaged workforce is the backbone of any successful organization. So, take the time to invest in your employees and create a workplace culture that fosters loyalty and commitment.