Developing an employee retention plan for 2022 is key to combating the ‘Great Resignation’ while boosting employee satisfaction and retention.
Employees are still leaving their jobs in record numbers and you’ll need a different employee retention strategy to retain valuable employees.
47% of HR managers reported employee retention as a top concern
-Society of Human Resource Management
Let’s start with the basics…
What is an employee retention plan?
An employee retention plan is a strategy broken down into actionable steps to lower a company’s employee turnover rate, boost engagement, increase employee satisfaction, and decrease annual hiring costs.
This can include:
- Employee development
- Competitive compensation
- Voluntary benefits
You’re not limited to these three components, but they are essential in retaining and attracting top talent. Take a deeper look.
After ten months, most employees feel stagnated in their positions, and some might secretly reenter the job market. To stave off the feeling of stagnation, we have to take their career development seriously and aim to advance them professionally to keep the company at the top of its game.
It’s more than a few webinars and a guest speaker coming by the office, effective employee development involves:
- Expanding the skillset of employees
- Better preparing employees for their role
- Creating new advancement opportunities
Career advancement can be tricky for some employers because the company policy may not legally grant the opportunity for promotion, and other companies may only have a managerial promotion structure.
Remember, not all employees want to become management and you can create opportunities for advancement as the company grows.
You can establish roles ranging from mid-level, senior, and advanced roles that don’t necessarily have to do with management, yet their expertise and influence still hold weight.
94% of employees would stay longer with a company if they invested more in employee development
-LinkedIn’s Transformation of Learning & Development Report
Underpaying workers doesn’t necessarily increase your bottom line since underpaid employees tend to be less motivated and less productive. Offering competitive compensation can give your company access to a pool of top-tier talent.
In fact, workers want more than just better salaries, they’re looking for enhanced compensation packages. Compensation packages vary from company to company enabling you to be unique in what you offer your employees.
Compensation packages may include, but are not limited to:
- Salary / hourly wage
- Vacation days
- Paid sick leave
- Paid holidays
- Vision / Dental insurance
However, we don’t want to focus on pay alone. As you see, salary becomes minor when you look at the grand scheme things and you’d be correct. Competitive compensation isn’t enough to entice your employees to stay.
It’s a combination of the elements in the employee retention plan already listed above and voluntary benefits.
Employees don’t just want any voluntary benefit, they want benefits with some substance and, most importantly, actually make a difference in their lives.
We apologize for being the bearer of bad news, but you can’t rely on ping pong tables and free lunch once a week to cut it anymore.
Sought After Voluntary Benefits:
- Tuition reimbursement
- Student loan repayment
- Mental health benefits
- Identity theft protection
- Pet insurance
- Financial counseling
This is a shortlist and there are many other options for you to choose from to create a diverse benefits package to meet the needs of different individuals. Having a variety of options allows your employees to select what applies to them and their families.
You can also leverage these benefits to attract new talent by including them in your next job listing.
Developing an employee retention plan is essential for the growth of your company, retention of your employees, and attraction of skilled new hires. It’s not something that you do once and move on.
Employee retention is something you work on from the recruitment phase all the way to the promotion phase. Over this period of time, the needs of the company and your employees may change and the benefits you offer will have to evolve with you.
Let Zupnick & Associates be the constant variable to assist you with your benefits selection every step of the way.