Companies spend a lot of effort and money attracting the best employees. In an increasingly competitive business world, the ‘war for talent’ has been on the rise. But what happens when you actually get them? Employee retention is a critical issue in companies. It doesn’t only mean keeping your high performing employees, but it also leads to significant savings for the company.

According to the Society of Human Resource Management (SHRM), the cost of employee turnover is 2.5 times an employee’s salary depending on the role and other costs like lowered productivity, decreased engagement, and training costs.

Increased performance, improved productivity, and boosted morale are some of the benefits when a company starts to focus on employee retention. The bottom line is that focusing on employee retention will retain talented employees, which will contribute to the company’s success. What’s the point of attracting great talent if you can’t retain them in the long run? Here are some tips to help keep your retention rate and revenue high.

1. Provide benefits to your employees

Many employees look for ways to cut down expenses but having attractive benefits can go a long way toward helping you retain workers.

Some benefits you can offer are:

• Health insurance
  This is the most common benefit provided in most companies, i.e. providing HMO plans to employees.
• Life insurance
  Some companies provide life insurance as a benefit. It not only protects the family of the employee but the company as well.
• Retirement Benefits
  R.A. 7641 Art. 278 a.k.a. The Labor Code of the Philippines by providing retirement pay to qualified private sector employees. This is not commonly given but can be looked at once the employee has worked for certain number of years in the company.
• Paid vacation and holidays

Almost all companies offer this at least once the employee is regularized. 

Also read: Yield a high-performance work culture with these unconventional motivating tools

2. Offer career development programs

Companies that spend time developing their employees through professional development and career advancement create a culture that proves to employees that they are valued by the company.

Here are some programs you can explore:

• Offer training
  Many employees see their career as an investment and stepping stone to a bigger role. These kinds of training don’t have to cost the company much. Other employees like trainers or managers could run the program as well.

• Provide guidance
  Regular feedback on an employee’s performance and the plan in place for them are ways in which employees know what is expected of them. Mentoring programs can be added for them to get back on track.

Also read: SMEs can take advantage of these 6 tools to increase employee productivity

3.  Strengthen your leadership management

According to Gallup, 75% of the overall reasons for employees to resign is management related issues. Leadership and management are often what makes or breaks the company’s retention rate. If the leadership is good enough, employees will definitely enjoy their work and their stay in the company.

Also read: 7 building blocks of an effective leader

If you need help in keeping the retention rate high, leverage these strategies to create a profitable company, where employees enjoy working.
 

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