According to our latest Annual Trends Report, which surveyed over 6,000 UK senior decision makers, attracting and retaining top talent remains a foremost challenge for organisations. Companies are persistently struggling to find and retain good employees with the skills, expertise, and knowledge crucial for their success. In response, business leaders and HR professionals are constantly seeking innovative strategies to enhance employee retention and engagement within their organisations.
Here are the top 13 strategies to retain talented employees in your organisation.
1. Embrace agile work practices
Agile work method is a framework that helps companies to respond to changing work style requirements. It’s a two-fold approach where companies can harness employees potential while enabling employees to enjoy flexible work environments.
Adopting agile working model is crucial for retaining top talent. It allows businesses to offer diverse work styles such as remote working, flexible hours, and hybrid models, tailored to employees’ needs. Employees can maintain a healthy balance between their personal and professional lives, enhance their engagement, which consequently reduces burnout, while increasing job satisfaction. Furthermore, 76% of companies say agile working allows employees to become ‘as’ or ‘more’ productive, according to our Annual Trends Report.
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2. Encourage work-life balance
Promoting a healthy work-life balance is next in our employee retention strategy list. When organisations cultivate a culture that respects and prioritise employees’ time outside the office, they affirm the importance of their personal lives. You can develop such a culture by setting clear boundaries around work hours, encouraging the use of vacation days, and focusing on employee well-being through wellness programs.
Additionally, you can offer resources such as time management workshops and stress management seminars that empower employees to manage their time effectively. As recognising the diverse needs of your workforce is essential, you should also embrace flexible scheduling that accommodates employees’ personal and family commitments. This creates an environment where individuals feel valued and supported, ultimately leading to longer employee tenure and reduced turnover.
3. Build employee engagement
Employee engagement is the emotional commitment employees have towards their work, team, and organisation. Engaged employees are more likely to stay with an organisation, as they feel a sense of purpose and connection to their roles and the overall mission of the company. To foster employee engagement, you can implement various initiatives such as regular check-ins, recognition programs, team-building activities, and career development opportunities. Additionally, providing feedback and listening to employee concerns can also increase engagement by showing that their opinions are valued.
Moreover, creating a positive work culture where employees feel empowered to voice their ideas and suggestions can boost engagement levels. This not only helps in retaining top talent but also leads to better collaboration and innovation within the company.
4. Minimise employee burnout and prioritise wellbeing
The latest Gallup study of nearly 7,500 full-time employees revealed that about two-thirds experience burnout at work. The research also found that employees who frequently or consistently feel burned out are 2.6 times more likely to leave their current job.
Employee burnout – stemming from work pressure, reduction in salary and benefits, and job insecurity – is a significant contributor to low productivity. This not only impacts individuals’ well-being but also leads to diminished organisational performance and high turnover rates. Therefore, the goal of every company should be to achieve their best potential. Implementing measures, such as agile and flexible working options, team collaboration, and mental health awareness programs, helps companies reduce employee burnout, enabling employees to thrive and remain with the company longer.
5. Foster a culture of innovation through technology
In today’s fast-paced and constantly evolving business world, innovation is key to staying ahead of the competition. By embracing latest technologies like Artificial Intelligence (AI) and cloud and creating a culture of innovation within your company, you can attract and retain talented employees who are excited about pushing boundaries and finding new solutions to problems.
Investing in digital tools and software promotes collaboration, creativity, and efficiency. It encourages a culture of experimentation, where employees are given time to explore new ideas and solutions to foster a sense of ownership, ultimately leading to increased job satisfaction and employee engagement, and high retention rates.
6. Emphasise Diversity, Equity, and Inclusion (DE&I)
Incorporating Diversity, Equity, and Inclusion (DE&I) into an organisation’s retention strategy is both a business necessity and a moral obligation. Inclusive practices empower employees from diverse background to thrive in the same workplace, share varied perspectives and ideas, and drive innovative problem-solving methods and enhanced company performance. Additionally, when employees feel respected, valued, and vital to their team, their commitment and engagement with the company become stronger.
To execute effective DE&I strategies that cultivates long-term employee loyalty, you should start with implementing bias-free recruitment and hiring processes. Technology plays a crucial role in this case. Our survey reveals that almost two-thirds (65%) are using technology to support diverse hiring and onboarding. Furthermore, you should focus on creating pathways for career development, recognising diverse talents and contribution, and ensuring equity in leadership opportunities. These initiatives should be actionable and aimed at achieving sustainable improvements in the workplace, thereby encouraging employees to remain loyal to the company.
7. Offer competitive compensation and perks
Prioritising fair compensation for employees’ hard work and time is crucial for attracting and retaining talent. When employees receive fair wages that are regularly adjusted as per rising inflation, they can maintain their standard of living, feel satisfied, and remain connected with the organisation.
To determine fair pay for workers, companies should first assess the prevailing wage rates in their specific job market. For instance, Forbes Advisor notes that as of April 1, 2024, the minimum wage in the UK for workers aged 21 and above is £11.41 per hour, while it stands £8.60 an hour for those aged between 18 to 20, and £6.40 for those aged between 16 and 17, including apprentices. The next step involves researching competitor’s salary offerings and their approaches to raises.
If your company fail to match or exceed these benchmarks, you may end up losing top employees, leaving lower performers to fill the gaps, which can ultimately cost the company more than investing in competitive compensation for high performers.
8. Improve on-boarding process
The on-boarding process is the first impression that employees have of their new organisation. If employees experience poor on-boarding, they may quickly become disengaged, confused, and felt lack of connection with the company. Therefore, to retain top talent, you should create an effective onboarding process that provides a warm welcome, clear expectations, and opportunities for growth and development. You should ensure that new hires are properly introduced to the company’ culture, mission, and vision from day one.
9. Offer professional growth opportunities
Offering employees opportunities to grow and develop professionally is a great way for companies to retain good employees. It’s a win-win situation for both employees and employers. Employees enhance their skill-set and career trajectory, while the company benefits from having a skilled and knowledgeable workforce. You can offer employee development opportunities through training, upskilling and reskilling, mentorship programs, support for further education, and options for internal promotions. This makes employees happier, more satisfied, and more likely to stay with the company, ultimately making your company culturally stronger.
10. Employee satisfaction is key to success
Employee satisfaction and churn rates are inversely proportional to each other: as satisfaction rises, churn decreases. Recent research by Boston Consulting Group shows that employees with higher satisfaction demonstrate a 25% decrease in churn rates, and a significant 41% decrease in absenteeism. This is corroborated by a Gallup poll that shows highly engaged teams are 21% more productive.
So, when employees feel trusted by their employers and have some agency over how, when, and where they work, they often become more engaged with their company, respond with greater commitment, and have a deeper sense of pride in their output. Conversely, in workplaces where people feel undervalued, mistrusted, and micro-managed, they can easily become disengaged, seeking only to achieve the bare minimum for their employer. This can result in high staff turnover and reduced productivity. To foster a high level of employee satisfaction and engagement in your company, ensure to give your employees a voice by making them feel listened and showing them that their opinions matter.
11. Support employees with the software they need
In today’s digital age, equipping employees with software and tools they need is highly crucial for them to work smartly and efficiently. It not only enables them to complete their task better but also shows that their employer values their time, productivity, and success.
Organisations should constantly assess the needs of their workforce and invest in technology that supports collaboration, communication, and remote working. This can include project management software, cloud-based applications for document sharing and team messaging platforms. By ensuring your employees have access to the best software available, you are investing in their success and securing their long-term commitment.
12. Train managers to enhance retention process
A survey by Boston Consulting Group highlights that well-trained managers can minimise attrition risk by 72% and boost employee retention by 3.2 times. What they should have is just right tools, training, insights, and incentives to support their teams. If managers are trained properly, they can effectively communicate with their employees, empathise with them, resolve conflicts, and lead their team in the right direction.
Therefore, to enhance retention process, organisations should focus on developing managers’ skills in improving employee engagement, performance management, and effective communication. This empowerment allows managers to better understand their teams’ needs and concerns, fostering a more supportive and engaging work environment.
13. Appreciate the hard work and milestones of your employees
Employees like to be recognised and acknowledged for their hard work and contribution to the organisation. When employees feel appreciated, they are motivated to continue performing well and stay committed to their company. You can recognise and reward employees by introducing various methods such as public recognition, bonuses or incentives, gifts, or through a simple thank you note. This will not only make them feel valued but also promote a positive company culture where hard work is recognised and celebrated.
Why do employees leave an organisation?
Retaining employees within your organisation is important, but knowing the key reasons why employees leave your companies are equally crucial to establish an effective retention strategy, Here are some key reasons why employees leave companies:
- Lack of career advancement opportunities
- Insufficient compensation and benefits
- Poor work-life balance and high stress levels
- Unsupportive company culture
- Ineffective management and leadership
- Limited professional development prospects
Why is employee retention important?
Here are some key benefits of retaining employees in an organisation:
- Cost-effective: The cost of hiring and training new hires is much higher than retaining existing employees. Therefore, employee retention is a cost-effective strategy for businesses.
- Increased productivity: Employees who have a long-term commitment to the company are more motivated and productive, leading to higher output and enhanced company performance.
- Stronger company culture: Retaining experienced employees help maintain organisational values and promotes a stable work environment, ultimately building a stronger company culture.
- Employee satisfaction: When employees feel valued, supported, and have opportunities to grow within the organisation, they are more likely to be satisfied with their job and remain loyal to the company.
How OneAdvanced can help with employee retention?
At OneAdvanced, we understand that retaining talented employees is not just about offering lucrative salaries or perks; it’s about creating a supportive work environment where individuals feel valued and engaged. That’s why, we offer a suite of People management solutions that help you to implement above tactics to enhance employee retention and set yourself on a path toward sustainable success.
Are you interested in the latest insights on how companies are performing in attracting and retaining top talent? Download our 9th Annual Trends Report 2024/25 to access valuable data and expert analysis, along with strategies to address these challenges.
Frequently Asked Questions (FAQs)
How to retain top talent without increasing salary?
Offering non-monetary benefits such as flexible work arrangements, professional development opportunities, and positive company culture can help retain talent without increasing salary. Focusing on recognition programs, enhancing work-life balance, and ensuring meaningful engagement in projects can also make employees feel valued, boosting their satisfaction and commitment to the organisation.
How to retain employees after resignation?
To retain employees who are leaving, offering a counter-offer with enhanced roles, responsibilities, or compensation may help. Additionally, addressing their concerns, providing a path for career growth, and ensuring a supportive work environment can make the employee reconsider their decision and remain with the organisation.
How to retain millennial employees?
Millennial employees value flexibility, career development, and a sense of purpose. To retain them, offer flexible work options, invest in their professional growth through training and educational programs, and foster a culture that aligns with their values. Regular feedback, recognition, and opportunities for meaningful work can also enhance their commitment to the company.
How to retain employees after an acquisition?
After an acquisition, it's essential to communicate openly and transparently with employees about the changes and how it will affect their roles. Be sure to address any concerns they may have and provide support during the transition period. Offering training opportunities, career development programs, and involving them in decision-making processes can also help retain employees after an acquisition.