The Complete Guide to Employee Retention

Retention is one of the most common employer challenges historically, and in a post-pandemic job market, it’s more important than ever. Keeping teams happy, healthy, and stable in roles that support them is a major priority for workplaces around the world. It’s all about incentives.

Incentives should hopefully be a large part of your winning return to office formula. Unique perks to being “on the job” quickly help teams see the office as a good place to be. Over time, you will have a happier, more productive team who isn’t just with you to pay the bills, but as part of their long-term goals.

In this article, we discuss how you can use incentives to optimize your employee retention. Read on to find out how to win your team “back to work” for the foreseeable future, and give them (and you!) an enjoyable workplace for the long term.

But First… The Importance of Employee Retention

Most agree that long-term retention is a “good” thing. But how important is it, exactly?

According to Glassdoor, it costs about $4,000 and 24 days to hire a new worker. Other reports confirm this, and in many cases, the numbers can be (much) higher. That’s not to mention team resources and energy that could be spent more directly on job duties.

Companies with a higher employee retention rate bear a lot of fruit. Here are just a few of the key areas where higher retention rates make a difference:

1. Cost Reduction – According to Netsuite, U.S employers spend upwards of $1 trillion a year on recruiting. It’s so high because it includes advertising, screening and then interviewing candidates, in addition to time lost toward revenue-generating activities.

2. Morale Improvement – High turnover leaves a bad taste in everyone’s mouth. Retention, on the other hand, has the opposite effect. It shows that the company is a good one to work for. A team of happy, loyal employees does wonders for your business’s reputation, making it easy for you to attract top talent in the industry.

3. Experienced Employees – While “years in the workforce” is the most often-tracked experience metric, “years in the company” is a surprisingly accurate indicator of how efficient a given team member will be in their role.

4. Increased Team Productivity – As teams work together, their collaboration becomes more cohesive, fluid, and streamlined. That means a higher productivity rate. Also, less time is spent on the hiring process. 

5. Better Employee Experience – Everyone has a better time. Your employees know what they’re doing, and the system goes like clockwork.

How to Increase Employee Retention Through Positive Incentives

Higher retention is somewhat obviously a good goal to strive toward. The next step is implementing an action plan. This starts with assessing and improving company culture. 

5 Steps to a Positive Company Culture 

Take care of your team, and they will give back. Every office is different, but there are certainly consistent themes in positive companies. Take a look around your space and see what changes you can make.

1. Providing the right equipment – Having the latest technology and tools at your disposal makes everybody’s day easier. It can be as simple as a reliable stapler (assuming you still use paper!). If your team is using tools daily to do their work, those tools should support, not hinder, them.

2. Incentivize in-person working with lunch perks – Everybody loves food. Top-quality catering services can give teams something to look forward to when they’re starting their car on a rainy morning. Bringing staff together around a meal reminds them that their personal lives outside of work are important and gives a great space to offer employee rewards or other ways of showing you care. Retention begins with a belief in belonging.

3. Offering a staff well-being program – We all get down from time to time. Offer a well-being program, and staff will feel that extra support that they might not get in other organizations.

4. Allowing for flexible working arrangements –The working world has changed. Many people prefer remote to in-person work. Consider arranging it so that staff can opt for it if they wish. You may think this is counterproductive to the objective of increasing attendance, but it’s about morale. Happier staff who feel catered to are more likely to go the extra mile in the future.

5. Planning events people don’t want to miss – Lastly, why not arrange some social events that people don’t want to miss? Bonding time with your coworkers is important and improves collaboration. If you have new recruits, this gives them the chance to fit in and thrive.

Provide Adequate Training 

With a strong culture established, helping your team build skills within your company is the next best retention incentive. If you want to maximize employee retention. It's essential to provide the right level of training for your staff. With adequate training, your team will know exactly how to do their jobs, helping them feel confident and competent. Moreover, they will be more capable of collaborating with trained staff members.

Offer Career Progression Opportunities 

Consider offering courses for your staff to enhance their skills and be promoted into higher roles. This is highly important because it shows your staff the benefits of sticking with them.

Around 76% of employees hope to expand their careers. Investing in employees shows you care and inspires everyone to pursue growth and excellence. 

When your staff is reassured that there is an achievable career progression in your organization, they’ll be more satisfied and content in their roles. They’re also less likely to search for work elsewhere, helping you maintain noticeable employee retention. The high strivers will, in fact, become even more productive than ever before.

Final Thoughts

All of this combined will serve to give your employees a greater incentive to return to the office.

Keeping your employees happy in the workplace can lead to significant benefits for your company. At Ritual, we help improve the workplace experience with incentives, which contributes to keeping employees in your sphere for longer.