How leaders can enhance employee retention
Since the start of the COVID-19 pandemic, people worldwide are revaluating their values, contemplating whether their current roles and duties align with them, and many have decided it's time for a change. In the UK alone, research shows that more than one-third of employees are searching for new job opportunities.
Leaders play an integral role in employee retention as they set the tone and culture for their teams. If employees feel valued, appreciated, and as though they are part of a team working towards a common goal, they are much more likely to stick around.
With the great resignation set to continue, leaders must review how they can enhance employee retention.
What is employee retention?
Employee retention is defined as the percentage or number of employees a company retains from one year to the next. This metric is important to companies because it indicates how well they are able to keep their employees satisfied and engaged.
A high employee retention rate usually means that employees are happy with their jobs, co-workers, and company culture. It can also mean that the company offers competitive salaries, benefits, and work/life balance.
A study by Towers Watson found that employee retention rates are highest among companies that have a diversity and inclusion strategy in place.
Causes of low employee retention
Many factors contribute to employee retention, but leaders play a crucial role. After all, leaders set the tone for the team and create a culture of respect and appreciation.
Some common causes of low employee retention are:
- Poor working conditions - This includes a lack of job satisfaction, working long hours, and a lack of appreciation from management.
- Poor pay and benefits - This includes low wages and a lack of paid time off.
- Toxic work environments - This includes a hostile or negative work culture, bullying, and harassment.
- Lack of opportunity for growth and advancement - This includes limited development opportunities, low job growth potential, and a lack of upward mobility.
- Poor communication - This includes a lack of transparency from management, a lack of feedback, and a lack of appreciation for employees' contributions.
How to enhance employee retention
The Society for Human Resource Management (SHRM) conducts an annual survey on employee retention. Their latest report provides some interesting insights into what employees are looking for in a job.
The top three factors that influence employee retention are:
- Job satisfaction
- Pay and benefits
- Work/life balance
Considering the above, leaders should look to increase job satisfaction, review pay and benefits regularly, and ensure that employees have a work/life balance.
However, leaders can additionally take advantage of the following points to enhance employee retention.
Create a positive work environment
Employees who feel valued and appreciated are more likely to stay with a company, and those who feel like they have a voice are also more likely to remain loyal to their employer. A positive work environment starts with strong leadership, but it also requires open communication, respect for employees, and a commitment to creating a culture of excellence.
When leaders create a positive work environment, they send a message that they value their employees and are committed to retaining them. Yet, when leaders fail to create a positive work environment, employee retention could drastically decrease, with research showing that 27 per cent of employees quit their job due to a toxic workplace.
Encourage professional development
Leaders should encourage professional development opportunities for their employees for several reasons.
First, when employees feel that they are learning and growing in their roles, they are more likely to be engaged and motivated. This can lead to improved performance and productivity, which benefits both the employee and the organisation.
Additionally, offering professional development opportunities can help attract and retain top talent. Employees who feel that their career growth is being supported are more likely to stay with an organisation for the long term.
Finally, investing in employee development sends a message that the company is committed to its workforce and is invested in each person's success. When employees feel valued, they are more likely to be loyal and dedicated to their employer. Leaders who invest in their team members' professional development are helping to create a positive work culture that fosters employee retention.
Leaders who want to retain their employees need to ensure that they provide feedback on a regular basis. Feedback helps employees feel valued and appreciated, and it also allows them to improve their performance.
Furthermore, feedback provides employees with a sense of direction and helps them understand what is expected of them. By giving regular feedback, leaders can create an environment where employee retention is more likely.
Listen to feedback
In addition to providing feedback to employees, it is also important to listen to their feedback. This shows that their input is valued, and their concerns are heard.
When employees feel like their voices are being heard, they are more likely to be satisfied with their job and less likely to look for opportunities elsewhere.
How can leadership coaching help enhance employee retention?
Leadership coaching is a valuable tool that can help leaders enhance employee retention by developing the skills and knowledge necessary to create a positive work environment, encourage professional development, give feedback, and listen to feedback.
Coaching can also help leaders address any personal issues that may be affecting their ability to lead effectively. By addressing these issues, leaders can become more effective and improve employee retention.
Contact us today
Contact us today to find out more about how leadership coaching can aid employee retention. At The Leadership Coaches, we support leaders and their teams in developing a positive coaching culture that assists leaders in retaining their top talent.