The Pandemic is blamed for triggering the Great Resignation, although the seeds were sown before that and the trend continues to impact business growth in the UK.
People now have a different relationship with work and how it fits their life and values and seek roles that are aligned with their personal values. This is fuelled by the number of vacancies in the job market, giving people plenty of options to change jobs if they are unsatisfied.
Business leaders I speak to in every sector, cite recruitment as the number one factor holding back their growth. So while it’s so hard to recruit, and the costs and time it takes to recruit and train new staff, how do you build a happy, committed and successful team who will stick with you through thick and thin?
Spoiler Alert: it’s not just about paying more!
The benefits of improving employee retention
Improves productivity - when employees are committed and happy they are more likely to be focused, efficient and go above and beyond.
Boosts customer satisfaction
Knowledge and skill stay in your business.
Saves money by reducing the time and cost of recruitment and training.
Improves morale through a better sense of consistency and community
If you want to explore more about employee engagement and retention join my free online workshop on Thursday 7 October. How to build a happy, engaged & resilient team Sign up via my website and I’ll send you a link to join us on Zoom.
HOW TO MEASURE TURNOVER AND RETENTION
Leaders should monitor turnover and retention on a regular basis. Here’s how to measure both:
The Chartered Institute of Personnel and Development defines Employee Turnover as: “Employee turnover refers to the proportion of employees who leave an organisation over a set period (often on a year-on-year basis), expressed as a percentage of total workforce numbers.”
And Employee Retention is “the number of retained employees, measured as the proportion of employees with a specified length of service (typically one year or more) expressed as a percentage of overall workforce.”
TEN WAYS TO BOOST RETENTION
1. COMMUNITY & CULTURE
Building an engaged team begins with creating a connection and a community and a culture around a common purpose and values. This creates a sense of belonging and commitment.
Researchers at McKinsey say that employees "want a renewed and revised sense of purpose in their work. They want social and interpersonal connections with their colleagues and managers. They want to feel a sense of shared identity. They want meaningful – though not necessarily in-person – interactions, not just transactions.”
Values are how you behave as a business, what you believe in, and how you treat each other and your customers. Define these values and communicate them on a regular basis. Values aren’t just a list of words written up in the staff room or handbook, they have to be authentic and demonstrated in everything you do. An employee will feel connected to their job when their personal values align with the organisation’s values, so when hiring new staff communicate your values and explore if there is a match, and then reinforce them every day.
2. RELATIONSHIPS & TRUST
The number one reason people leave a job is because they don’t get on with their manager. Start by developing your emotional intelligence (EQ) to become more self-aware of the impact that you have on the people around you, and to be able to connect with and empathise with everyone as individuals.
It’s all about building mutual trust and respect, so staff trust leaders to make the best decisions and leaders trust staff to do their best work without needing to micromanage.
Check-in with your staff on a daily basis with a focused “How are you?” (rather than just a casual greeting). Make time for one-to-ones as well as team meetings - ask questions and practice active listening.
Deal with conflict in the moment rather than sweeping it under the carpet and letting it fester.
3. GIVE RECOGNITION
It’s human to want to feel seen, heard and valued. You can work as hard as you can, be the best you can be, but if you don’t feel seen and heard, you will lose motivation and become disengaged. A manager I spoke to recently had been offered an amazing opportunity elsewhere, but when her manager sat down with her to thank her for her work, praise her progress and ask what motivated her, she decided to stay. “They made me feel valued,” she said.
On a daily basis, encourage people with a simple smile, celebrate success with a high-five, thank people at the end of a shift and highlight positive achievements to the whole team.
4. WELLBEING
Plenty has been written about the importance of looking after your staff’s well-being. When people feel stressed or that the balance of their life and work is wrong they become disengaged. We spend more of our waking hours at work than out of it, so it needs to be fun. Encourage fun and promote a relaxed environment where people can enjoy a laugh together.
Strive to establish the right work-life balance: encourage people to take breaks, monitor overtime and raise a flag if someone is doing too much. Set a manageable workload with the right balance of challenge and interest and ensure that people have the right tools, equipment and training.
Ensure people feel they can talk to someone about any issues they are experiencing in or outside work. Signpost people to additional support if needed.
5. FLEXIBILITY
Even prior to the pandemic, employees were seeking more flexibility, since it has become a priority, especially for Millennials and Generation Z. Flexibility means giving your staff the opportunity to enjoy their life outside of work as much as possible.
Be aware of what other commitments people have outside work, whether that’s childcare or studying. Try to provide rotas with as much notice as possible, avoid last-minute changes so people can plan their time away from work.
6. BETTER ONBOARDING
First impressions are critical. A strong onboarding experience from recruitment through to the first few weeks creates a lasting sense of engagement and commitment. It sets clear expectations and smoothly integrates new starters into the team.
7. GROWTH AND DEVELOPMENT
People don’t just leave a job for more money - they leave because they’re not challenged, because they’re not learning and because they don’t see a future there.
What opportunities do you offer for personal growth and development? How do you support your staff to be the best they can be? This might be skills training for the job or mentoring from a colleague to develop soft skills. It might be just giving informal feedback to encourage them to push themselves forward or it could be talking about their future opportunities for promotion.
What opportunities do you offer for personal growth and development? How do you support your staff to be the best they can be? This might be skills training for the job or mentoring from a colleague to develop soft skills, it might be just giving informal feedback to encourage them to push themselves forward or it could be knowing that there are opportunities for promotion.
8. TREAT PEOPLE FAIRLY
Fairness means a leader treats everyone appropriately and individually, based on circumstances and contribution. A perception of unfairness is a major cause of resignations. For example, perceived unfairness in the distribution of rewards is very likely to lead to resignations.
9. EQUALITY DIVERSITY & INCLUSION
Make sure that opportunities for training, incentives and promotion are open to all staff. Encourage diversity in the organisation, as this can have a positive effect, highlighting that differences are embraced and welcomed and that no one is discriminated against.
10. FAIR REWARD
A secure income is obviously important to people, not least during this cost of living crisis. But while businesses are under their own financial pressures what else can you do to reward people for their commitment?
Employees now judge the remuneration packages on a broader range of measures including pensions, holiday allowance and other benefits.
Do you also offer incentives for higher performance, a benefits scheme (from pensions to perks)? Financial rewards, gifts or a hand-written note for high performance or going above and beyond are all meaningful ways to reward staff.
FINALLY, SPEAK TO YOUR TEAM
Going through these factors of employee engagement and retention will help you to identify any potential improvements you can make, but if you really want to know how engaged your team are, and what more they need - ask them. This could be through informal chats or a short questionnaire that can be completed anonymously. This gives people the opportunity to show what they appreciate and voice any concerns. If you can respond to these and you’ll show you care about your people and they’ll reciprocate with their commitment.
If you want to explore more about employee engagement and retention join my free online workshop on Thursday 7 October. How to build a happy, engaged & resilient team Sign up via my website and I’ll send you a link to join us on Zoom
