Employee retention is defined as an organization's ability to keep its employees. Retention rates vary greatly between organizations. However, the U.S Department of Labor Statistics found the average employee tenure to be 4.2 years. This number varies with race, gender, and age. There are many factors that affect employee retention. Some of these factors are uncontrollable. The industry may be too competitive, or an employee may have personal reasons for leaving. An organization can't predict these challenges, but they can work to ensure that there is a solution for the known issues.
In many cases, individuals feel like their organization could put in more effort to retain them. The organization may be lacking resources and opportunities, or there is poor company culture.
Whatever an individual’s reason for leaving may be, employee retention is crucial. The cost of employee turnover is too high to let the problem persist.
The best way to increase employee retention is by improving employee engagement. This means providing individuals with a reason to commit to the organization.
This commitment is shown when employees do meaningful work that fits into the big picture. PayScale found that 27% of individuals left their previous job to do more meaningful work. They want to feel valued by their organization and want that commitment reciprocated.
Any well-developed employee retention strategy includes a solid program for improving employee engagement. A program like this should keep employees invested and enthusiastic about their work and their organization.
While employee engagement and retention go hand in hand, the methods for keeping employees engaged tend to apply as general principles. Employee retention strategies must always be considered in the context of the current job market and state of the economy.
During times of economic growth, jobs become available and the job market becomes a candidate's market. Employees are more likely to seek opportunities to enhance their careers.
In times of a candidate's market, organizations must figure out how to retain employees. There are several ways to do this. Many of which include strategies to develop employee careers.
Individuals also need to feel valued and secure in their standing with the organization. A program should be implemented to let individuals know they have a future with the organization.
Coaching and mentoring programs focused on career development provide employees with these opportunities. They can develop their skills, engage with their organization, and envision their futures as valued and contributing members of the company.
The Harris Poll found that 69% of organizations feel that career growth is important for employee retention. However, 34% of individuals stated that they quit for more career development opportunities.
Implementing coaching and mentoring programs focused on career development is essential for employee retention. These programs are used to enhance individuals' skills needed to take on leadership roles. Employees are then given the ability to advance within their organization. They will no longer find it necessary to leave the organization to pursue career advancement.
In addition to these benefits for individuals, employees see the effort organizations exert to retain them. In response, these organizations see higher employee morale, loyalty, and engagement. Career development programs are also a cost-efficient way for organizations to develop their employees.
Mentoring programs are useful for individuals who want to further develop skills they currently use. Mentors provide access to their professional network including those in the c-suite. They also provide guidance with goal planning and honest feedback. These factors set employees in the right direction for career advancement.
Coaching programs allow individuals to gain new skills needed to advance their career. Coaches are experienced and achievement focused. They help individuals build confidence in their abilities. They also teach them how to manage stress and build other leadership qualities.
Coaching and mentoring programs focused on career development are designed to engage employees. They show individuals that the organization want a mutually beneficial relationship. Paired with recognition and feedback, employees see that their organization is invested in their success.
Coaching and mentoring programs focused on career development help employees engage their organizations by creating comprehensive career plans. These programs help plot their paths for the future with their companies. Individuals with more experience can provide employees with the guidance they need along the way.
Having the structure of a career plan and strong guidance, employees plug into the company culture. When employees get engaged with the company, they feel committed. When they feel committed, they're much more likely to stay.
Employee retention programs provide employees with the opportunities, incentives, and resources needed to engage with the organization. Employees also gain a sense of commitment to a lasting career. However, facilitating a targeted employee retention program can be a difficult task on its own.
Utilizing technology can streamline the process for administrators and employees. Technology helps make every aspect of an engagement and retention program readily accessible to users at every level of the organization.