How to Ensure Employee Retention
October 23, 2024
Retaining good employees has always been integral to an organization’s stability and success. But especially since the COVID-19 pandemic with its challenges and new modes of working—and changing attitudes about what constitutes a healthy work-life balance and career success—as well as predictions that turnover rates are predicted to rise higher, HR professionals are focusing more on how to ensure that their organization retains valuable talent.
Start by using a simple mathematical formula to calculate your employee turnover rate. For the percentage of employees lost by your organization during a given period, use this metric:
Total number of employees who have left ÷ average number of employees × 100
Retention rates vary by sector. For example, turnover rates are higher in the tech, finance, retail, and healthcare fields for industry-related reasons. But a 90 percent retention rate is the goal for many industries.
The bottom line of employee retention is pretty simple. In order to feel satisfied with their employment, people need—and deserve:
- Competitive compensation
- Job security
- Safe working conditions (both physical and psychological)
- A pleasant workplace
- High-quality leadership
On top of that, our current crop of Gen Z employees often sees the following as basic requirements as well:
- Flexibility in the form of remote or hybrid work options and compressed workweeks
- The use of new technologies such as AI
- Professional development and advancement opportunities/mentoring
- Health and wellness offerings
- Recognition from leadership
- Ongoing engagement and good communication
- A harmonious work-life balance
This changing vision of what constitutes a workplace worth staying at, represents a recent generational shift in priorities. This shift must be heeded, in spirit if not to the letter. If your industry isn’t conducive to flexible scheduling or remote work, focus, for example, on promoting a healthy work-life balance and wellness. Regardless of your industry, pivoting toward these areas builds a strong workplace culture that boosts employee satisfaction and loyalty, and the ability of organizations to retain valued talent to ensure stability and continuity and promote growth.