5 Ways To Increase Employee Retention

Discover effective strategies to boost employee retention and create a positive work environment.

The Importance of Employee Retention

Employee retention is crucial for the success of any organization. However, more employees than ever are looking for new jobs. The 2024 Global Talent Barometer by Manpower Group reported that 35% of employees are considering a job change in the next 6 months (1). While job satisfaction may be lower than ever, Human Resources (HR) can enact positive change with various initiatives and programs. This is especially important for small organizations (<100 employees) and the largest enterprises (5,000 or more) both name attraction and retention as their top challenge (2).

When employees are satisfied and engaged, they are more likely to stay with the company, reducing turnover and the costs associated with hiring and training new employees. By focusing on employee retention, organizations can build a strong and dedicated workforce, leading to increased productivity, improved customer satisfaction, and higher overall company performance. Below, learn about 5 ways companies can increase employee retention.

1. Offer Competitive Benefits Programs and Work Perks

Of course, compensation and salary is one of the top drivers of employee satisfaction - but one that HR rarely has control over. Unfortunately, comprehensive benefits packages are one of the areas that need the most work. According to MetLife, "benefits represent one of the largest gaps between what employees want and what employers focus on when trying to attract and retain talent" with a 36% difference in employee expectations and employer offerings (2).

It is possible for HR to lessen this gap by offering "extras" - like voluntary benefits and work perks. Offering unique work perks, such as flexible schedules, remote work options, health and wellness programs, or on-site amenities, can create a positive work environment and make employees feel valued while being more within the control of HR.

Benefit programs are one such method of offering additional work perks. A free employee discount program like that offered by BenefitHub offers countless incentives without raising costs. 86% of employees that use BenefitHub say we are an important part of their benefits package.

By providing comprehensive benefits and appealing work perks, organizations can demonstrate their commitment to employee well-being and work-life balance, making employees more likely to stay with the company.

2. Recognize and Reward Your Employees

Recognizing and rewarding employees for their hard work and achievements is a powerful way to increase employee retention. When employees feel valued and appreciated, they are more likely to be engaged and motivated to perform at their best. This can be done through various recognition strategies, such as employee of the month programs, peer-to-peer recognition, or performance-based bonuses.

According to a survey conducted by SurveyMonkey, 82% of employees consider recognition an important part of their happiness at work. This highlights the importance of acknowledging and appreciating employees for their hard work and contributions. In fact, according to the Brandon Hall Group Culture of Recognition Survey, companies with a strong recognition culture are 3x more likely to see increased employee retention (3).

Robust recognition and reward systems can help foster a culture of appreciation and create a positive work environment where employees are motivated to stay and contribute to the company's success. Learn more about BenefitHub's Rewards and Recognition Program.

3. Create a Positive and Inclusive Company Culture

A positive and inclusive company culture is essential for employee retention - and this proves even more difficult to achieve in a post-pandemic world. 72% of employers report difficulties in maintaining an open and supportive culture (2). Employees want to work in an environment where they feel respected, supported, and included. Organizations can work to foster such a culture by promoting open communication, providing opportunities for collaboration and teamwork, and embracing diversity and inclusion.

Diversity, Equality, and Inclusion (DEI) initiatives are an important way to forge strong cultures. Metlife's 2022 survey found that "about two-thirds (65%) of employees expect their employer to take action to promote DEI within their organizations" (2). Important DEI actions to take are to create a more representative leadership team, offer a wider range of benefits, and provide conflict resolution training to managers. Also be aware of top barriers to DEI reported by companies, including a lack of support staff (63%), budget (34%), and management support (31%) (4).

The shift to remote work has also had a profound impact on organizational culture. In 2024, 22% of human capital leaders' feel they need to work on shifting toward a culture that prioritizes personal-well being (5). This speaks to a larger trend of employees seeking better work-life balance, in addition to focus on DEI practices, remote work, and other generational changes.

By taking these increasingly important factors that impact culture into account, organizations can enhance employee satisfaction and create a sense of belonging, and contribute to higher employee retention rates.

4. Provide Flexibility and Focus on Employee Well-being

Providing flexibility and prioritizing employee well-being are key factors in increasing employee retention. Work-life balance and flexibility has been identified by 64% of employers as a top trend impacting the workforce over the next 20 years (2). But what does that mean?

Flexibility can include offering options for remote work, flexible schedules and rules, or the ability to balance work and personal commitments with PTO. Additionally, organizations should prioritize employee well-being by promoting work-life balance, providing resources for mental and physical wellness, and offering support programs. Consider providing lifestyle benefits and those focused on wellbeing such as mental health coverage and Telehealth.

By giving employees the flexibility they need and showing a genuine concern for their well-being, organizations can improve employee satisfaction and increase retention by 59% (2).

5. Foster Career Development Opportunities

Employees value opportunities for growth and advancement within their organization. By fostering career development opportunities, organizations can increase employee retention. This can be achieved through various initiatives, such as providing training and development programs, offering mentoring or coaching opportunities, and creating clear paths for career progression.

Organizations can demonstrate their commitment to their employees' long-term success and create a loyal and motivated workforce by investing in the professional growth of employees.

How BenefitHub Can Help

BenefitHub is a comprehensive employee benefits platform that can help organizations enhance their employee retention efforts. BenefitHub offers a wide range of benefits programs and perks, including health insurance, retirement plans, employee discounts, and wellness resources. By partnering with BenefitHub, organizations can provide their employees with valuable benefits and resources that contribute to their overall satisfaction and well-being, without contributing to overhead costs.

With BenefitHub, organizations can create a positive work environment and increase employee retention by offering a competitive and attractive benefits package. Learn more about BenefitHub, or contact us today.

Sources:

(1): Manpower Group, Global Talent Barometer, 2024 Report and Key Findings

(2): Metlife's 20th Annual U.S. Employee Benefit Trends Study 2022

(3): The Business Benefits From the Creation of A Recognition Mindset and Culture

(4): "Successful DE&I programs focus more on inclusion and belonging, new report finds"