In the previous article on this topic, we referred to a very well-known quote on talent management – do read it if you haven’t yet.

“Train people well enough so they can leave. Treat them well enough so they don’t want to.” – Sir Richard Branson

In this article, we will focus on the second part of the quote, namely how to keep employee retention high and ensure that all staff see themselves as an integral part of the company.

Understand why employees leave the company

Employees may leave a company for various reasons, including for personal reasons unrelated to the job or management. Many of the most important reasons cited for why employees resign, can however be addressed internally by implementing a strategic retention plan.

General reasons for employees leaving:

  • Insufficient salaries.
  • Forced overtime.
  • Low employee engagement.
  • Geographic relocation.
  • Lack of encouragement.
  • Poor leadership.
  • Ineffective communication.
  • Negative company culture.

Recognise signs of unhappiness in the workplace

It is important for businesses to identify why employees are unsatisfied with their workplace or role at work. While some indicators are obvious, others might be more subtle.

Here are a few signs to look out for in employees:

  • They regularly look at their watches.
  • They show a lack of cooperation with colleagues.
  • Their communication is lacking.
  • They do not interact with colleagues and keep to themselves.
  • They do only the minimum required.
  • They do not take initiative.

Proven strategies to retain employees

The retention of employees is essential to the success of any business. A company’s success is directly tied to the strength and stability of its team. Here are six effective strategies to reduce employee turnover:

1. Offer competitive salaries and bonuses

  • Salaries are a primary motivator for employees. Offering a competitive salary not only encourages employees to stay at the company, but also makes them feel appreciated for their contributions.
  • Do the necessary research to ensure that your company is abreast of the current industry-related salaries. There are third-party sources/consultants that can help to give an accurate indication of these figures.
  • Keep discussions around salaries open and transparent. Everyone involved should thus be aware of the total package. The absence or inclusion of benefits such as medical coverage, pension fund, transport or even discounts on company products, should form part of these discussions to ensure that everyone is well informed.
  • Bonuses can further incentivise employees to reach and exceed targets. Recognition of hard work through bonuses or awards enforces positive behaviour and motivates employees to perform to the best of their ability. Make absolutely sure that the targets set to qualify for bonuses are established in an open, transparent way, and are achievable.

2. Listen, ask questions and pay attention to pressing issues

  • Remember that employees are individuals, not only workers. It is critically important to listen attentively to their concerns and ask open, honest questions that encourage them to share their thoughts.
  • Identifying pressing issues allows you to address and solve problems, which in turn leads to a more satisfied and engaged workforce.

3. Give regular feedback and encouragement

  • A key component of any retention strategy is to give regular feedback and encouragement. This applies to both positive and constructive feedback.
  • Recognition of an employee’s good work can give their motivation and productivity a boost. Even a small achievement must be recognised if it benefits the team or company.
  • Effective leaders must enforce consistent positive behaviour and give constructive criticism when necessary. To address negative behaviour, like bullying, in a quick and decisive manner, is also essential for maintaining a healthy workplace culture.

4. Develop a positive workplace culture and organise social events

  • Employees spend a significant part of their lives at work, and that is why it is important to create an environment where everyone feels comfortable and self-assured. A positive workplace culture, supported by clear standards and guidelines, helps employees to understand what is expected of them even when management is not there.
  • Organising social events can help to strengthen team morale and promote a sense of community, which makes the workplace more pleasant for everyone.

5. Make provision for flexible work arrangements

  • Nowadays, flexible work arrangements have become ever more important. Offering flexibility enables employees to balance work with their personal lives, which leads to increased work satisfaction and greater engagement.
  • By accommodating different preferences for working hours, you can create a more productive workforce that will likely remain at the company for longer.

6. Manage engagement

Do not be the type of business where the reality show “Undercover Boss” could take place. Top management should be known to all staff throughout the organisation. It should not be necessary to catch employees out and look for shortcomings and mistakes retrospectively. Rather be proactive and take part in regular problem-solving sessions to avoid small issues turning into big problems.

Weigh the cost of retention against the appointment of new staff

  • It can be detrimental for a business to continuously lose staff members. While new appointments often bring new energy, the costs to recruit and train new employees may be significantly higher than retaining current staff.
  • When a team constantly changes, it can lead to stress and burnout among current employees, which can create a possibility of them leaving.

Closing thoughts

An effective strategy for staff retention entails a pro-active, multi-dimensional approach which is designed to reduce employee turnover, lower recruitment costs and promote productivity. It creates an environment where talent chooses to stay and wants to help the company grow and prosper. The impact of a stable team is of great worth. It shifts the focus from mere filling of vacancies to fostering long-term engagement, satisfaction and career growth.

For more information, contact Pieter Badenhorst at [email protected].

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