Employee retention is an important human resource goal. A high retention rate gives a company a good reputation. If people see that the company has a low turnover rate, they will realize that the company takes care of its employees enough to encourage them to stay. As a result, more people will want to be part of that company and stay there. Employee retention also helps companies save money and time required to recruit and train new employees.
But encouraging or convincing employees to stay is not an easy feat. In 2018, the average turnover rate in the U.S. was 22%. Many employees leave for many reasons. Some of them don’t feel appreciated in their jobs, see no growth, or feel like they’re not compensated enough.
That’s why it’s so important for companies to provide programs that show that they value and care for their employees and encourage them to stay. Here are just a few examples:
Offering a Mentorship Program
Employees value professional growth. They want to learn new things so that they can advance in their careers. By offering mentorship programs, companies acknowledge this desire and send the message that they also want what’s best for their employees. Many Fortune 500 companies, such as Intel, Google, General Electric, and many more, acknowledge the value of mentorship programs and offer them to employees.
Mentorship programs benefit both employees and employers. Employees learn new things and develop their skills to perform better at work and take a step closer to promotion. For employers, mentorship programs help them retain employees by giving them job satisfaction and making them feel valued.
Providing Educational Programs
Educational programs are also important. Companies that provide free training or seminars show their employees that they care as they are willing to invest money and time to help employees acquire new skill sets.
Employers can get their return on investment when employees apply whatever they learned from training and seminars on the job. Employees also tend to repay companies for providing educational programs by performing more effectively and efficiently.
Offering Wellness Programs
An employee can perform their work well if they are healthy both in the mind and body. Thus, employers need to offer wellness programs to their employees to show that they care and that they want their employees to stay healthy.
In terms of promoting good physical health, companies may offer gym memberships or on-site fitness classes. But since going to the gym and the office are quite limited these days due to the pandemic, companies can instead encourage workers to work out together online using exercise videos and fitness challenges.
As for mental health, companies can provide counseling and free meditation classes to help employees take their mind off work and relax.
Encouraging Work-life Balance
In 2020, Millennials make up half of the workforce population in the U.S. And one of the things that this group of employees value is work-life balance. And this is a valid consideration, of course. Work-life balance allows employees to get adequate rest and avoid burnout.
Companies that care for their employees encourage employees to achieve work-life balance. Often, this means that giving employees flexibility regarding work schedule. For example, employees can clock in at whatever time they want, whether it’s 8 AM or 11 AM, as long as they work the required number of hours each day. In some industries, work-life balance means limiting overtime hours and discouraging work-related tasks during rest days. Before the COVID-19 pandemic, work-life balance also meant allowing employees to work from home when they need to.
Offering Employee Stock Purchase Plan (ESPP)
Allowing employees to buy stocks can be a great way to make them stay. This benefit may not be available for many companies. But for those that do, by offering ESPP, companies show that they care for their employees by allowing them to become stockholders. This can also motivate employees to work better.
Offering Retirement Benefits
Companies that care for their employees also provide retirement benefits. If employees know that they can receive benefits when they retire, they’ll be more likely to stay in the company for many years.
One popular example of such benefit is a defined contribution plan. This is when employees make a contribution for their pension through payroll auto-deductions and companies match the contributions either partially or fully. An example of such this is a 401(k) plan offered in many companies, such as John Hopkins University, Google, and AT&T, that employees can claim upon retirement.
Companies reach their success because of their employees. Thus, it’s only right to give employees the proper treatment that they deserve.