Effective Employee Retention Strategies: How to Keep Your Talent
When it comes to employee retention, salary alone won’t stop them leaving. Companies must invest in skills development and progression planning if they want to keep their most valuable employees.
According to the Adecco Group's 2024 Global Workforce of the Future report, fair pay and opportunities for development are essential for future workers. After salary as a major factor, many are leaving their jobs for better prospects: 32% of the respondents in the research are seeking positions that enhance their skills and employability and 30% are looking for roles that invest more in training and upskilling. This indicates a clear trend among future-ready workers favoring skill development over traditional career advancement, highlighting their awareness of the benefits of non-linear career paths and adaptability.
That’s not to say that providing a competitive annual salary isn’t important–it definitely is -but there’s so much more you could be doing to reduce employee turnover.
So, even for companies with the ability to offer salaries over and above their competitors, it’s time to get creative and diversify what you offer to employees in order to keep them engaged, loyal and satisfied in your business. Here are five employee retention strategies to help do just that.
1. Improve your onboarding process
Onboarding is a key transition period for employees to get settled with the company culture and values. A well-planned and consistent onboarding process is your business’s chance to make a great impression on new joiners and ensure they’ll want to stay. Try these tactics:
- Start onboarding before day one
- Be personal
- Set expectations and goals early
No one wants to spend their first few days in a new job filling out forms. Consider sending paperwork to your new employee before their first day, so there’s less to get through when they start. Some companies also send a welcome pack out to their new hires-including your culture book, a welcome card and a small gift along with the necessary forms showing how excited you are to have them on board.
From a friendly introduction to the team to treating your new employees to lunch or a coffee on their first day, personal touches in your onboarding process help to relieve anxiety and immediately make them feel welcome.
According to a survey by LinkedIn, understanding performance goals is the second most important aspect of onboarding -just behind one-on-one time with direct managers. Help your new hire understand what will make them successful by explaining the department’s goals and individual KPIs, and outlining the career path for their role.
2. Offer flexible working options
Since the global COVID-19 pandemic changed the way we work, many workers are no longer tied to our 9-5 commutes. The lockdown restrictions forced us to find new ways of working in the virtual world which introduced us to the hybrid work week. In a recent study by Office RND, it has come to light that organisations offering hybrid working models can reduce employee turnover by 12%. When it comes to retaining talent, it is clear that employees value opportunities to work in different ways and it is key for employers to understand the impact this will have on staff turnover. Deloitte reports that a “lack of work flexibility” is the most likely reason a millennial will leave their job. Some businesses in Ireland that have trialed reducing the working week reported a decline in stress levels and burnout and a positive trend in the hiring rate. However, when approaching flexible hours and hybrid working, we recommend collaborating with your employees to design and trial a work schedule that meets both your needs.
3. Introduce low-cost benefits
Consider offering low-cost or free benefits such as local corporate discounts, birthday days off, and a relaxed dress code where possible. These can be popular, simple to implement, and much appreciated by colleagues without costing the earth. Think outside the box when it comes to flexible work hours, wellness challenges, and professional development opportunities through free or discounted courses.You could also establish recognition programs for peer acknowledgment, offer volunteer days for community engagement, and create mentorship opportunities for growth. Additionally, hosting learning lunches where employees share skills and knowledge on various topics of interest can further foster a supportive and collaborative work environment.
4. Implement reward and recognition
When your employees give you outstanding results, take the time to thank them and recognise their contribution. Some companies provide rewards and recognition in the form of quarterly or annual bonuses, or years of service awards. Non-cash reward and recognition schemes, such as eCards to say thank you and well done, shout-outs, and additional days of leave, can also be hugely popular and provide a meaningful way to recognise your employees for their hard work. Be creative and identify forms of reward and recognition that fit with your company culture and employer brand, while being fair, inclusive and meaningful.
5. Introduce employee wellbeing initiatives
Employee retention is increasingly dependent on how well organisations can improve employee wellbeing. When companies actively implement wellbeing initiatives—such as mental health support, flexible work arrangements, and wellness programs—they not only enhance the quality of life for their employees but also foster a more engaged and productive workforce. By creating an environment that values health, work-life balance, and continuous support, employers can significantly reduce turnover rates. Investing in employee wellbeing proves to staff that they are valued as individuals, which boosts morale and loyalty. Prioritising wellbeing in the workplace can help to prevent stress, improve morale, reduce sick days and improve overall employee engagement.
In conclusion, employee retention goes beyond offering a competitive salary; it requires a multifaceted approach that prioritises employee engagement and satisfaction. As the workforce changes, organisations must evolve their strategies to meet the changing needs and preferences of their employees, ensuring that they not only attract top talent but also cultivate a committed and productive team for the future.
Adecco can help put the right people on your team and give you the support and resources you need to keep them there. To learn more, contact us today.