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Effective hiring and retention practices are key to effective leadership. The reality is that managers who can hire well and keep talented people get better results. Replacing employees is time consuming, expensive, and disruptive. If an employee leaves the company, it can affect the entire team and cause a ripple effect of bad luck or sales.
Therefore, all managers should prioritize a strategy to ensure a high level of employee retention. Obviously, this strategy should include some of the basics like a competitive strategy, dedicated work, and a respectful environment. However, in the current environment, it is important that leaders go beyond these basics to retain the most talented employees. With that in mind, here are five strategies that are part of an effective employee retention strategy.
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Make sure all managers are effective leaders
There is a common saying that employees don't leave companies; bad managers leave. While this simplifies things a little too much, it is still a message that all leaders should consider. Ultimately, avoiding bad managers is an effective way to reduce employee turnover.
This means that executives must proactively develop their own management skills as well as the management skills of all executives across their organization. Indra Nooyi, CEO of PepsiCo, advises, "If you want to improve the organization, you must improve yourself, and the organization will pull in with you."
A meaningful development of managers is achieved by investing in leadership and consistently working to develop the leadership qualities of all managers. Whether it is a formal leadership course, regularly coaching meetings with managers, or shadowing managers while working with employees, it is important that managers consistently develop their leadership and management skills.
Focus on employee engagement
The more engaged employees are with their work, their team, and their company, the less likely they are to leave the company. This means that it is important for leaders to find ways to motivate all employees. For many employees, this begins with meaningful learning and development opportunities.
In general, employees are most engaged when they see opportunities for growth. The late Jack Welch, former CEO of Generic Electric, described the importance of people development as follows: “Before you become a leader, success is about developing yourself. After you become a leader, success is about empowering others. "
To make this easier, managers should figure out the ways employees want to grow and then devise a personalized way in which they can do it. This will give your employees clear promotion systems, show them that you care about promotion, and give them specific things to work towards.
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In addition to finding ways to develop employees individually, executives can improve employee engagement through a few other best practices:
1. By offering meaningful and consistent performance reviews with concrete evidence of employee results and measurable and achievable goals that you want to work towards.
2. By developing business practices that employees can be proud of. For example, when you get involved in the local community and support issues that are important to the employees, the employees invest not only in the growth of the company, but also in the company's values.
3. By providing mentoring programs that can connect employees with others in the organization and help them do so.
There are several ways to increase employee engagement. So it's just a matter of finding the right strategies for your company and your employees. Whichever method you choose, it is important to be aware of employee engagement and work consistently to ensure that all employees feel connected and engaged with their team and work.
Look for feedback from employees
Ongoing areas of frustration that haven't been addressed can affect employee retention over time. Unfortunately, sometimes managers are not even aware of the damage they are doing to employees' morale, productivity and ultimately retention.
To avoid this problem, managers should consistently seek and respond to feedback from employees. This can be done formally or informally. However, it is important that employees feel comfortable sharing concerns with their managers and that managers hear and respond to those concerns.
Develop a healthy culture
While many of these strategies are part of a healthy work culture, the general work culture is important enough to be included in your retention strategy. When it comes to employee retention, where, how and with whom employees work is important. For example, teams with close members and a respectful environment generally have less revenue.
There are many components that affect work culture. However, it's important to keep in mind that setting the right tone and developing the right culture begins with onboarding. Educating employees about their new job and work culture is an important part of setting the tone right from the start.
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Offer thoughtful perks for employees
It is important that employees are given a competitive strategy. Beyond salary, well thought-out perks can be an effective way of making employees feel valued and, consequently, more connected to their team and company. Perks include everything from catering lunches to gym membership to extra afternoons.
Regardless of whether you have a large budget or a more modest budget, there are plenty of perks you can offer to show employees that you value them and their overall wellbeing. Get creative with these and find benefits that your team members will enjoy and benefit from.
As a manager, employee loyalty should always be in the foreground. An effective retention strategy can help keep employees connected and invested in your team and company, leading to better results and a competitive advantage. While each team's retention plan looks slightly different, these five strategies should help shape your plan and lead to improved employee retention.