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It is estimated that each employee's departure can cost a company 1.5 to 2 times(1) their annual salary in expenses. Not to mention, it can take up to 6 months for a business to find a suitable replacement for a vacant position. Additionally, according to Gallup's State of the Global Workplace report(2), only 33% of employees worldwide feel engaged with the company they work for.
Understanding the correlation between employee engagement and retention can help businesses find long-term solutions to reduce turnover rates and foster the values within their corporate culture.
Why is employee retention crucial for businesses?
Employee turnover can lead to reduced profits and productivity, increased costs in recruiting new employees, and wastage of time in training new staff. Furthermore, it can trigger a domino effect where a company must allocate resources and funds to address arising issues instead of rewarding employees. Moreover, high turnover rates can affect the cohesion within the company, its corporate culture, and the overall employee experience.
If businesses can employee turnover, they can:
Enhance the employee experience:
A positive employee experience is essential throughout each stage of an employee's journey, from recruitment to resignation. By implementing strategies that offer special privileges to employees, businesses can focus on improving the overall employee experience meaningfully.
Enhance employee experience helps businesses to icrease employee engagement
(Source: Freepik)
Retain experienced staff:
Employees who have long-term commitment to a company possess invaluable knowledge about the business and its products/services, contributing significantly to the company's profits and growth.
Factors influencing employee engagement & employee retention
As we know, employees who feel engaged with a company are more likely to stay rather than seek opportunities elsewhere. So what factors lead to employees not feeling connected to their company?
Lack of internal communication:
Employees who feel isolated or are not included in discussions may start to lose their sense of connection with their colleagues and the company. Effective communication is crucial for any business, and it is essential to ensure that all employees feel they can easily connect with their colleagues and voice their opinions.
Disconnect from the company's goals/mission:
Engaged employees believe that their work is meaningful and contributes to the company's larger goals/mission. If your employees don't understand how their role aligns with the company's values, there is a risk of them losing their sense of connection. Therefore, businesses should regularly remind their employees about the company's values and the significance of their roles in fulfilling the company's mission.
Lack of recognition for employees:
Every employee wants to be acknowledged and appreciated for their efforts, no matter how small. When employees do not receive recognition for their contributions, they may feel disconnected from their colleagues and the company. Recognizing and rewarding employees for their hard work and dedication is key to fostering a positive work environment.
Limited career development opportunities:
Most employees desire opportunities to learn and grow in their careers. In fact, a Pew study(3) found that 63% of employees who left their jobs in 2022 did so due to the lack of career advancement opportunities.
If your employees are not given access to training or career development opportunities, it may be challenging for them to remain engaged with their work.
Lack of workplace flexibility:
Businesses worldwide are increasingly adopting new work standards and remote work is the key to solving the lack of workplace flexibility. 62%(4) of employees believe that remote work positively affects job satisfaction. Hence, providing employees with the freedom to work in a way that suits them best can be beneficial.
Strategies to boost employee engagement & employee retention
Improving employee engagement and increasing talent retention requires continuous efforts on the part of the business. There are many strategies to help businesses improve employee engagement and retention.
Strategies to increase employee engagement and retention (Source: Freepik)
Great Onboarding experience
According to a report from Gallup, only 12% of employees say their business has successfully onboarded new employees. That means 88% of new employees are not equipped with the necessary knowledge and requirements during the onboarding process. By preparing and setting up a specific onboarding plan, you can give new hires the tools and knowledge they need to feel most comfortable in their first step into the business.
When onboarding employees, businesses should let employees from different departments, including human resources, related departments, employees directly work, and even CEOs participate in the onboarding process for new employees. In this way, businesses are creating an environment of open communication, helping new employees understand their position well.
Build good office relationships
Building relationships in the workplace can be difficult. However, good workplace relationships are extremely important and essential to the success of a business. Specifically, when employees feel attached to their colleagues, they will feel that coming to the company every day becomes lighter, and the productivity of the departments also increases due to the coordination between employees.
So what motivates employees to engage with each other? The culture of recognition and reward is a prime example. By receiving recognition or commendation from colleagues or "boss", employees will feel their efforts are always appreciated and at the same time recognize the efforts of colleagues around. me. This creates a bond between employees, helping employees to be more open to sharing and strengthening relationships in the workplace.
Recognition of employees' efforts
Employees will feel appreciated and valued if they are recognized and rewarded for their efforts.
By implementing an employee recognition and reward platform and combining it with other strategies, businesses can significantly improve employee engagement and retention rates. The employee recognition platform helps businesses optimize the transmission of corporate culture, motivating employees to recognize the efforts of colleagues and, at the same time, support personnel in managing and measuring the level of engagement between employees in the enterprise.
Developing corporate culture through the EveHR platform (Source: EveHR)
Take care of employees' health
Implementing a physical and mental wellness program for employees is one of the most adopted strategies in large enterprises. Through this strategy, businesses can organize periodic health checks for employees, as well as organize health counseling sessions or workshops to help employees improve and cure physical and mental health problems.
Employees with good health will work more efficiently and productively, bringing significant benefits to the business:
Reduce absenteeism: wellness plans can reduce employee absenteeism by 14-19%
Improve corporate culture: 77%(5) of employees say wellness programs help them become more aware of corporate culture
Increase employee retention: 85% of employees say they will continue to work at the business
Clear career development opportunities
Employees won't stay long with businesses if they feel like they can't learn anything more.
When businesses support employees in developing their job-related skills, businesses can significantly improve employee engagement rates and increase employee retention rates.
Businesses can assist employees in developing the skills they need on the job by implementing a reimbursement policy for programs and certifications, including the costs of attending seminars or certifications for employees.
Boost the development of corporate culture
A positive corporate culture has a significant influence in attracting and retaining employees. Many people think that a great corporate culture is made up of the benefits the business provides to its employees. However, shaping a business's culture is much more complicated than having a nice workspace, a pantry stocked with food, or an entertainment area for employees.
Corporate culture should reflect the core values of the business. Specifically, if businesses focus on building relationships between employees, businesses should focus on values that can help employees connect more with colleagues and the business.
Improve employee engagement and retention rates with EveHR
EveHR provides solutions to help corporates solve the problem of engagement in the enterprise and retain talent through the development of a culture of recognition and reward.
Regular and continuous recognition: employees can send rewards to recognize the efforts/achievements of colleagues anywhere and at any time.
Benefits corresponding to employees' demands: EveHR supports businesses in optimizing and personalizing benefits according to employee needs so that employees have the best working experience.
Want to learn more solutions to develop a corporate culture to increase employee engagement and retention rates? Book a demo with EveHR to experience first-hand how to build a positive reward culture for your business.
EveHR is one of the leading apps for employee engagement. We understand the touch points in the employee's work cycle at the company from the time they start taking the job to the time they quit. Therefore, the features are designed to supplement the difficulties in each stage. Collect staff opinions through surveys conducted quickly and directly on the platform and trusted by many big companies such as DHL, Suntory Pepsico, Nestle, AIA… EveHR believes that it can accompany in the field. engagement, and increase employee productivity and efficiency.
EveHR belongs to Fram^ Group – a high-end software development company listed on NASDAQ.
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