As 2020 comes to a close, businesses are evaluating expenditures and weighing their benefits. According to a study reported in The Wall Street Journal, 85% of senior managers ranging from vice presidents to C-Suite executives said they are most concerned about losing high-performing employees this year—up from just 7% who listed employee retention as a top priority in 2019. Respondents in the study say workforce reductions, pay freezes, and hardships caused by the pandemic threaten their ability to attract and retain talent.
Employee retention is a significant investment. In 2019, for example, businesses spent on average $2,420 per person improving the employee experience, according to an international study from Gartner. If a business’s retention strategy works, it’s well worth the expense—the Society for Human Resource Management (SHRM) estimates every employee departure costs about one-third of the employee’s salary, taking into account lost productivity and knowledge, recruiting, and training.
If you want to make the most of your employee retention budget, here’s how to optimize your strategy to fit today’s unique demands.
How to Keep Your Best Employees on Payroll
1. Nonfinancial Perks
What makes your organization a fulfilling place to work? Policies that allow flexible scheduling, extended leave, paid-time off, and workplace socializing all contribute to a rewarding workplace culture that supports and empowers employees. Professional autonomy is also key to making employees feel appreciated and motivated to do their best.
2. Career Advancement Opportunities
Career development was the most common reason for voluntary resignations in 2019 and accounted for approximately 20% of departures, according to research from the Work Institute. To encourage aspiring leaders to stay at your organization, formalize a talent pipeline so employees know how to advance. Publish a roadmap for employees at every level and build a mentorship program to help staff grow their careers internally.
From booking conference rooms to requesting time off, submitting tickets to IT, and documenting reports, consider how your employees interact with technology for work. Are systems glitchy, cumbersome, outdated, or slow? Technical difficulties are more than just inconvenient—in fact, The Wall Street Journal reports up to 51% of surveyed businesses say inadequate technology increases employee turnover in addition to wasting valuable time.
4. Wellness Benefits
Sustained anxiety about the pandemic is creating a wave of mental health concerns. To help employees manage their stress while maintaining a productive workload, consider expanding your wellness benefits. Employees with upgraded wellness perks report higher satisfaction rates and are up to 31% more productive compared to employees who aren’t enrolled in a wellness program. When team members are happy and engaged at their jobs, they’re more likely to excel and stay with their employer.
5. Reputation Management & Transparency
Workers today want an equal exchange with their employer. To earn your employees’ loyalty, practice reciprocity and seek out mutually beneficial solutions. Try to be transparent about workplace policies and receptive to criticism. If you implement changes to improve the employee experience, commit to a schedule with measurable objectives. Then, inform team members about your progress.
For example, if you want employees to take advantage of a tuition assistance program, set enrollment targets each quarter and explain the value of these benefits in a townhall meeting or a company newsletter. If you use human capital management (HCM) software, this can also be a useful platform for connecting employees with incentive programs and resources.
How Can Gympass Support Employee Retention?
At Gympass, we understand talent retention is critical to your business. That’s why we’ve created tiered membership programs for workforces of all sizes, from 10 employees to 10,000. Benefit plans can be customized to your company’s goals and include access to over 55,000 fitness partners globally, in addition to virtual classes, mental health resources, therapy, personal training, and more. To learn more about how Gympass improves the employee experience, visit our corporate site today.