Five tips to increase employee retention
Since the last major recession in 2008, the European labor market has experienced growth but has also seen many changes. In spite of these changes, much of the EU has recovered to almost pre-recession employment rates.
In fact, unemployment figures are the lowest they’ve been since the recession. According to the Word Economic Forum, unemployment in the EU states (as a whole) dropped to 9.1% in 2017, down from 10.1% during the same month in 2016. This is good news for most EU member states.
The drop in unemployment numbers is good, but what’s driving changes in the employment segments?
Changing Employment Segments
The recovery, after the recession, has brought about many changes including the growth of mid- to lower-paid jobs. According to the report “Occupational Change and Wage Inequality: European Jobs Monitor 2017,” by Eurofund, the employment segments with the largest hiring volume (in 2012), included medium-skilled services employees.
The jobs with the highest demand were store salespersons, waiters & bartenders, personal care workers in the health services, and ‘elementary occupations.” This trend has continued throughout the period from 2014 to the present.
While the employment figures and growth in the number of highly paid jobs and the increase in the number of medium- to lower-paid jobs, businesses are finding it difficult to keep talented employees. What’s making it difficult to retain staff?
Employment Market Has Become a “Buyer’s Market”
While the employment figures have improved, and certain job segments have seen growth in the number positions available, businesses are finding it difficult to keep talented employees. This is because the number of qualified employees has dwindled with the increasing employment rates.
The job market has, in effect, become a “buyer’s market” for top job candidates who have the option to pick and choose where they’d like to work. Along with this development, there’s high competition between businesses for the best employees and high employee turnover rates, making staff retention a challenge for some companies.
How to Retain Your Company Employees
It’s become quite a challenge for many companies to find and retain qualified employees. If your company’s having trouble with staff retention rates, then review these tips on how you can improve employee retention.
1) Offer competitive compensation: many employers have the mistaken impression their employees leave due to issues with salaries and other forms of compensation. This is only partially true; however, in order to retain employees, it may help to offer compensation in line with competitors. Make sure you offer salaries at current levels, health insurance, retirement benefits, etc.
2) Show you value your staff: dissatisfaction runs high when staff feel managers take them for granted. On the other hand, when employees feel valued they’ll work harder and feel as if their contribution to the company is worthwhile. You might consider asking your staff for their input on what works best, use meetings and surveys to find out how your staff is feeling and what they need. Other ways to show appreciation include saying “thank you,” taking them out for lunch, bonuses and more.
3) Offer training and opportunities for growth: help your employees to reach their goals by offering training, workshops, etc. that help them learn more about themselves, increase their knowledge and further develop their skills. Not only will this help employees stay engaged with their jobs and committed to the company, but your company will also have a better chance of retaining staff and possibly be able to hire highly qualified employees from within the company.
4) Mentoring and coaching: mentoring and coaching programs provide staff a way to develop strong relationships within the company. Pair individual employees with someone more experienced in a similar position and encourage the development of skills and knowledge, along with feedback on performance. Make this part of the growth program, and you’ll provide employees with satisfaction, the chance to grow and achieve their goals within your company, rather leaving for another job with a competitor.
5) Create work/life balance: you can retain staff by creating a balance between their work and personal lives. This might take the form of flexible schedules (such as telecommuting, shorter work week, etc.). Your employees will be less stressed and able to be engaged with their work. Not only that, but your efforts will show the company values your employees and want them to have a healthy, full life with their family and interests outside of work.
Turnover rates are high right now, with fierce competition between companies for the most qualified employees. However, if you follow the tips give here, you may be able to increase employee retention, while also keeping your staff engaged with their work and your company.