You have likely heard that it costs more to hire a new employee than to retain one. While this might just seem like a push to improve retention rates, the statement holds true in 2022.
According to Glassdoor, the average cost per hire is a little over $4,000. Of course, this number varies depending on the job level and hiring practices. But it does reflect the direct cost of advertising positions, conducting interviews, completing background checks, paperwork, and more.
Then, of course, there are the intangible costs of having to hire a new employee. From the time it takes to fill an open position to training, it can take a few months for a new hire to become efficient and profitable.
All of this is to say that having an employee strategy in place is essential for your business’s success.
6 Employee Retention Strategies That Work
Not all employee retention plans are effective. In the modern workforce where remote work is more prevalent than ever, retaining employees requires new approaches. Here are a handful of innovative employee retention strategies for your human resources team to apply:Streamline Onboarding
Encouraging employee engagement all starts with the onboarding process. The experts at Robert Half explain that new hires should be set up for success from the start. This includes teaching them the ropes of the new job and details about company culture. It can be easy to breeze through the onboarding process, but it’s essential to not skimp on it. This first step can leave a positive (or negative) impression on a new hire that will stick with them in the long term. Make sure your new employee feels supported right from the beginning.Improve Payroll & Compensation
Time and time again, compensation is one of the top reasons for employee turnover. In fact, Pew Research Center recently reported that 63% of workers who quit a job in 2021 cited low pay as the main reason for their decision. It’s important to offer competitive compensation right from the start. However, to retain employees you should also allow for discussions around raises, inflation, and other things that can affect salary. At the same time, making improvements to the payroll process can also help improve employee satisfaction around this topic.Offer Competitive Benefits & Perks
With working from home here to stay, it’s important to offer benefits and perks that will actually motivate your team. While office perks like ping pong tables or massage chairs are fun and flashy, these don’t necessarily make for a better working environment. According to the Society for Human Resource Management, the best perks for your talent retention strategy should show employees you care about their wellbeing. Some popular benefits include:- Flexible work hours and vacation time
- Career development opportunities
- Educational and financial assistance
- Help them save for their retirement ahead of the Secure Act 2.0
- Mental health and wellness perks