How to Retain Employees

Written by: Lauren Pflug: Senior Content Strategist, Blueprint Evolution

The labor market and workforce are still recovering while trying to navigate back to “normal” after being flipped upside down in 2020.

In conjunction with this, we’re seeing global trends like quiet quitting and the great resignation; employees are realizing that their worth is not being recognized or properly compensated, so they’re pulling their efforts back. While these buzzwords may be relatively new, the shared experience of being unhappy at work is not. What has developed is, the humans that make up our workforce are beginning to demand change.

And while not all of these employees are outright quitting, they have certainly stopped caring… which is even worse for the employer.

An employee skating by doing the bare minimum is costing a company more than a new hire with high prospects would.

If as an employer you put any effort towards keeping a pulse on the workforce, none of this is news to you. After years of seeing no payoff, people have given up on going above and beyond for their employers. Employees are either completely checked out, or are demanding that their leaders do better.

So, as a leader, how can you do better?

How can you ensure that your employees will not only stay, but feel content in staying?

A recurring theme in employee retention is recognition.

If you’re asking yourself “that’s it?”, the answer is yes… kind of.

Of course there are more layers to this and plenty to learn, but all in all, people just want to be recognized for their hard work and valued for their character. We realize there are economic impacts affecting most of us, and that promotions and raises may not be an option right now. It seems as though employers conclude that they can’t afford to financially reward their employees, shrug their shoulders, and move on.

This is where huge opportunities are being missed.

People do want to be monetarily rewarded for their efforts, but the research shows that the human aspect, the kindness, is almost as important to employees as the paycheck.

According to a 2022 survey, 63% of people who quit their jobs in 2021 did so because of low pay. In comparison, 57% of people cited feeling disrespected at work as one of their reasons for quitting (Pew Research Center).

To continue with the stats, only 1 in 4 employees feel connected to their workplace culture and only 1 in 3 employees report feeling a sense of belonging at their place of work. (Workhuman-Gallup).

We have entered an era where a human-centered approach in the workplace is a must.

I mean, I feel like humans requesting that they be treated like humans isn’t necessarily a big ask–or shouldn’t be.

If you want to continue to build your brand successfully and leverage your resources, you must understand that your people are your greatest resource.

Just because the research so far is not in your favor doesn’t mean you’re down for the count. It is absolutely possible to reel these employees back in, and is actually the perfect opportunity for growth.

The growth you’re looking for starts with having a solid employee retention strategy. To fully grasp employee retention, you have to know the components that keep employees happy and prevent them from quitting.

The largest driver for employee retention is recognition. Here are some stats that will be in your favor if you foster an environment of significant employee recognition– Employees that regularly receive recognition are:

73% less likely to feel constantly burned out
56% less likely to be looking elsewhere for a job
44% more likely to be thriving in life overall
5x as likely to feel connected to their work culture
4x as likely to be engaged at work

(Workhuman-Gallup Report)

A solid employee retention strategy has the potential to save a 1,000-employee organization upwards of $1.6million annually. Employee recognition works. Yet it is somehow still underutilized. Workhuman-Gallup reports that while 67% of leaders claim to bestow recognition multiple times per week, 40% of employees report receiving recognition only a few times or less per year.

Recognition should not be reserved for strictly workplace-related events and achievements. This is a human-centered approach afterall, so acknowledging and celebrating the human behind the employee and the milestones in their personal lives are just as important.Another noted reason for quitting is a lack of opportunity for growth. Investing in training and development for your employees will yield significant improvements in the employee experience. Happy employees = loyal employees. In addition to development, encouraging social connections between employees not only provides them with a sense of belonging, but increases employee engagement. When your people have meaningful relationships at work, they are less likely to want to leave. Team building and work events should be ongoing within your workplace culture.

Work-life balance is a big one here. We have evolved into the hybrid work model; regardless if it was forced upon you during the pandemic or you’ve already been at this party, it’s here to stay. Research shows that employees with flexible schedules are not only more productive, but also more likely to be loyal to their employers. Balance is important to employees, they want to have satisfaction in their lives outside of work, which starts with having a manageable workload and not having to put in extra hours or doing unpaid work. Burnout hits like a brick wall. Even the highest performing employees will struggle with productivity when they’re experiencing burnout or overwhelm.

Leaders need to be mindful about the workload they’re distributing and ensuring that time isn’t being spent on unnecessary tasks at their request. Unnecessary tasks that are a waste of time include micromanaging. You should respect your employees and trust that their work will be completed timely and properly. If you don’t, why did you hire them? Sure, people need structure and support, but this should be approached and curated carefully as structure and support look different for everyone.

Obviously compensation is an important factor in retaining employees. The paycheck is literally the purpose of working. Yes, the human-based approach should always be centered, but even the most praised employees will walk away from a job that cannot properly compensate them. Especially with the current cost of living, salaries should be reviewed and adjusted whenever possible. If your company executives could retire tomorrow while your employees are living paycheck to paycheck, you’re doing something wrong, and it’s time for a payroll audit. And your employees probably don’t respect you.
Company payment policies should always be clear and the way they are discussed should always be transparent. Conversations surrounding money are typically uncomfortable, but they don’t have to be. By cultivating transparency surrounding salaries, your employees will feel more comfortable and confident to discuss the topic, as well as understanding the path that has been clearly set for them.

At the end of the day, employee retention is not as difficult as it may seem. People want to work for someone they respect, while being treated with respect in return.

If employers and leaders keep employee well-being among their top priorities, their retention rate will reward them. In summary, here are the 6 main practices you should be focusing on for employee retention:

Employee Recognition
Employee Development
Fostering Social Relationships
Flexible Work Model
Work-life Balance
Compensation

(Workhuman)

Sources

Pflug, L. (July 2023). Quiet Quitting: How the Impact Leads to Opportunity. Blueprint Evolution.

https://blueprintevolution.com/quiet-quitting-how-the-impact-leads-to-opportunity/

Parker, K & Menasce Horowitz, J. (March 2022). Majority of Workers Who Quit a Job in 2021 Cite Low Pay, No Opportunities for Advancement, Feeling Disrespected. Pew Research Center.

https://www.pewresearch.org/short-reads/2022/03/09/majority-of-workers-who-quit-a-job-in-2021-cite-low-pay-no-opportunities-for-advancement-feeling-disrespected/