The 3 Rs of Employee Retention

With employee appreciation day fresh in our minds, it’s a great time to reflect and consider the engagement and morale of our colleagues. Does your workplace feel like an accepting, nurturing and rewarding organisation that inspires its employees? Or are you noticing valuable employees dropping like flies and jumping ship to a competitor? 

Let’s discuss the issue of employee retention — what causes it and how we can improve it.

The stats aren’t pretty — one in three employers anticipate higher levels of staff turnover in 2024, and one survey reveals that 53% of respondents said they were looking to leave their current company this year. This isn’t great news for businesses. The costs of recruitment are extensive, with hidden expenses that aren’t always considered. When you think about the money involved with advertising a given position, recruitment fees and time spent looking for the ideal candidates, as well as interview costs and training and onboarding, it’s easy to see why retention is such a priority in 2024. Businesses are looking for key areas to improve and offer support to cut employee turnover and boost morale.

When discussing employee retention, the intricacies and complexities can get overwhelming. When you get to the root of the issue, however, it more often than not boils down to the three Rs. Businesses who focus on respect, recognition and rewards generally find they are better able to attract, retain and engage employees in a meaningful way.

Respect — The Cornerstone of Strong Companies

Respect and trust form the foundation of a meaningful relationship. When employees feel respected, they are more likely to be invested in their position, their role within the business and the organisation’s overall mission.

Showing employees respect can increase levels of employee engagement while encouraging innovation and idea sharing. Furthermore, in a survey of over 20,000 employees across the globe, respect was ranked the most important leadership behaviour. According to Human Resources Employee Statistics, 63% of those who don’t feel treated with respect intend to leave their job within two years — the relationship between respect and retention is clear and undeniable.

One good way to begin to build respect in the workplace is through listening and acting. We recommend carrying out employee engagement surveys on a regular basis — these show your employees that you respect and value their feedback. You want to know what your employees are feeling and thinking, so you can continually improve the employee experience. The key, however, is to act and incorporate change where possible. If employees are continually voicing their opinions and they see no change as a result, they are going to feel that not only is their opinion not respected, it’s also not heard.

Recognition — Let Your Employees Feel Seen

Recognition can have a significant impact on employee morale and engagement. We all like to be applauded for a job well done — or for the pure effort we’ve put into a project. When our work is recognised, we feel more confident and secure. We feel like a valuable part of the company’s larger mission and, as a result, we’re more likely to stay loyal to the company.

The fact is that infrequent, performative and/or vague recognition won’t cut it. Even employee of the month schemes can’t do the job in isolation. The most successful businesses know that employee recognition needs to be timely and specific. It needs to happen regularly and openly. Seeing other employees being appreciated and recognised for their effort has a knock-on effect to the whole team, motivating them to work harder themselves.

When it comes to the link between recognition and employee retention, there are a lot of studies out there that demonstrate the positive correlation:

• A Gallup poll showed that employees who are given regular recognition see an increase in productivity and loyalty
• Companies who introduce a strategic employee recognition programmes see a 31% decrease in voluntary turnover
• 91% of HR professionals agree that recognition programmes have a positive impact on employee retention, but only 26% of managers agree that their company places enough attention on employee recognition efforts
• One survey showed 46% of their respondents left a job because they felt under appreciated and another 65% said they would work harder if they felt more recognised by management

Reward — It Goes Beyond Pay

It might sound superficial, but it’s reality. Rewards are important to people. Rewards demonstrate that work is being truly appreciated. While reward isn’t perhaps the biggest part of the retention puzzle it’s an important piece nonetheless, and shouldn’t be discarded. 79% of employees say an increase in rewards would make them more motivated to work harder, while 63%  felt more loyal to their organisation after being appropriately rewarded. 

Just as with recognition, rewards should be frequent — but they don’t need to break the bank. Small tokens of appreciation can mean a lot. A voucher for a takeaway, a bottle of wine or a free coffee could make all the difference. There are even non-financial employee rewards to consider, including increased work-life balance and flexibility. Certain perks can really highlight the benefits of your organisation and reasons to stay loyal, even in the face of an interesting new job offer.

What can you do about employee retention today?

When looking into retention rates and how to improve them, there are so many elements to consider. Factors will vary depending on each and every organisation, but the three Rs are a great place to start. We recommend clients consider employee surveys, specifically designed to delve into employee concerns and issues — the more you know about your employee experience, the more you can improve it, until your business becomes one that is hard to turn away from.

If you’re looking to overhaul your company and employee experience in order to keep your top employees around for years to come, it’s good to start with some data. Learn where you’re excelling and where you could improve, for your business and your people. Our employee retention surveys will arm you with all the direction you need to implement meaningful change. Contact us today to get started!