The COVID-19 pandemic has changed how businesses operate virtually overnight. Many employees are working remotely and using this time to evaluate their job satisfaction. With 7 million job openings, employees can attain new positions that are more meaningful to them without much difficulty—along with the work setting and leadership they desire. This is creating employee retention challenges for businesses across the country.
The average cost to recruit and onboard an employee is around $4,000. Businesses shouldn’t assume employees are satisfied and potentially lose this investment in talent. Strong employee retention practices can greatly reduce employee turnover and should begin on an employee’s first day. These include:
- Onboarding and orientation—Solid onboarding improves employee retention by 82%. From the first day through ongoing support and training, this is necessary for retaining employees.
- Employee compensation—Look at total compensation, such as bonuses, paid time off, health benefits and retirement plans, not just salary.
- Perks—Flexible schedules and remote work options are highly valued perks, as is paid parental leave.
- Communication—Good workplace communication is essential, and employees should feel free to share ideas, questions and concerns at any time without ramifications.
- Quality management or supervision—Employees often leave because of managers and supervisors, not because of their jobs. Employee complaints often point to leadership having unclear expectations and not offering a framework for an employee’s success.
Employee retention requires strategically reviewing the entire employee experience. Failure to do so can be costly to your bottom line due to the additional investment of recruiting, hiring and training new employees. For additional employment resources, contact ProAction Insurance Services.