Proven Examples of Employee Engagement and Retention Strategy

No discussion of employee retention can be had without recognizing that the key to success will lie in effective internal communication and a fully realized and implemented approach to employee engagement. High voluntary turnover is costly for organizations, making it essential to focus on strategies that retain employees. This will lie at the heart of all successful and effective employee retention strategies.

What are Effective Employee Retention Strategies and Why Do We Need Them?

Bottom line… quality staff, the kind your competitors want to acquire for their organizational success, are expensive to find, train, and retain. Replacing an employee can cost between one-half to two times that person's annual salary, making it even more critical to retain existing talent. Retaining top talent saves organizations from costs associated with recruitment, onboarding, and training. So, if you already have the right qualities within your workforce, it makes financial sense to maintain high levels of employee engagement, job satisfaction, and company loyalty through retention strategies that meet and, ideally, exceed the expectations of your brightest and best.

This is where an effective approach to employee retention can make a difference. An employee engagement platform can play a crucial role in these retention strategies by providing valuable insights into employee engagement metrics and revealing potential turnover risks. Losing employees means losing institutional knowledge, which can be detrimental to organizational success. Automated employee engagement platforms can also help manage conversations around pay and recognition confidentially, ensuring employees feel valued and appreciated.

At its most basic a good strategy will encompass employee retention techniques which

• Ask employees questions about what they think
• Foster an open organizational structure through effective internal communications
• Ensure they feel their contributions action real change by management
• Create internal job opportunities and career growth
• Ensure that learning opportunities meet and exceed employee expectations
• Recognize that interpersonal dynamics within the workforce are key to effective individual and team results, as well as work satisfaction
• Regular conversations about workloads between managers and employees can help prevent burnout and dissatisfaction at work
• Companies can improve employee satisfaction by auditing workloads to ensure a manageable amount of work per day

Promoting diversity and inclusivity helps to create a sense of belonging, which in turn boosts employee satisfaction and retention rates.

If strategy is about the big picture ‘vision thing’, the art comes in the way this vision is achieved; the retention techniques. At its heart will be a raft of well-established practices that have evolved over many years of human resources management.

While not exhaustive this includes job design, effective internal communications, company culture, recruitment and selection, performance management, recruitment and training, personal development, and last, but equally vital, health and wellbeing. Understanding and addressing employees' feelings is also essential for maintaining high retention rates and low turnover. Companies benefit from retaining high-performing employees due to their skills and expertise, which contribute significantly to organizational success.

Employee Engagement and Retention

The strategy seeks to take the often challenging external factors (market conditions, competition, availability of skills in the marketplace) into consideration and mesh these with an optimal mix of techniques to first gain and crucially, retain quality staff for the long-term benefit of the organization.

The Importance of Employee Retention

Speaking about the hiring process Mike Kappel explains, “Onboarding is a make or breaks time for employees. Done well, onboarding can increase your employee retention rate. Done poorly, onboarding can result in employees quitting within six months of starting.

Encouraging employees during the onboarding process by recognizing their potential and providing support can enhance their engagement and creativity. Offering remote and hybrid work options shows a commitment to employee work-life balance, which can further improve engagement and retention. In fact, 96% of employees who started working remotely due to COVID-19 would like to continue working remotely at least some of the time for their careers.

In simple terms, having a great strategy that falls down in implementation is an Achilles heel best avoided. As Kappel concludes, “If employees are significantly confused about how to do their jobs after onboarding, you could have problems down the road. They could become frustrated with the lack of communication, leading to disengagement.” Keeping employees informed about company news can help engage employees, reducing uncertainty and anxiety.

Thus it can be argued that employee retention begins before a potential recruit to the firm even joins the payroll. Their whole experience, from the interview to onboarding and career development will have a significant impact on their perceptions of and satisfaction with the company. It is the sum of the employee’s experiences with the organization which will directly influence their levels of engagement and loyalty and not solely whether their pay and perks are X percent better or worse than a comparable company. Effective communication and support are crucial to increase employee retention.

As Margaret Rogers sees it, “In my experience, the most impactful development happens not through formal programs, but smaller moments that occur within the workplace: on-the-job learning opportunities that are wholeheartedly catered to the worker’s unique needs and challenges.”

Implicit in this approach is a recognition that managers at all levels need to be fully aware that formal processes and practices of employee development will only go so far to achieve a strategic goal of talent retention. It’s also about the kind of culture an organization fosters and which creates commitment.

The Link Between Employee Engagement and Retention

Employee engagement and retention are closely intertwined. Engaged employees are more likely to be committed to their work and the organization, leading to increased job satisfaction and reduced turnover.

Employee engagement is a key driver of retention, as it influences an employee’s emotional connection to their work and the organization. When employees feel valued and connected to their workplace, they are more likely to stay and contribute to the company’s success. Organizations that prioritize employee engagement are more likely to retain their employees and achieve business success, as engaged employees are more productive, motivated, and loyal.

Employee Engagement and Job Satisfaction

Employee engagement and job satisfaction are closely related. Engaged employees are more likely to be satisfied with their jobs, leading to increased productivity and reduced turnover. Job satisfaction is influenced by various factors, including job design, work environment, and opportunities for growth and development. When employees are engaged, they are more likely to find their work meaningful and fulfilling, which enhances their overall job satisfaction.

Organizations that prioritize employee engagement and job satisfaction are more likely to retain their employees and achieve business success, as satisfied employees are more likely to stay and perform at their best.

What Does an Employee Retention Process Look Like?

An example some might consider a cheerleader for the future is outdoor fashion retailer Patagonia. With 3,000 staff worldwide it has been lauded for its hugely successful strategy to retain employees and practices.

As Bruce Anderson explains, “The outdoor retailer Patagonia makes iconic fleeces and hoodies, backpacks and Baggies. But its signature product may be its irreverent, unconventional, one-of-a-kind culture.”

That culture is one in which the well-being of staff and their families is at the heart of its strategic goals and has formed a powerful basis for its employee retention strategies and practices. Retaining employees through a supportive and inclusive culture is crucial for maintaining high levels of job satisfaction and engagement. Flexibility in work arrangements can enhance employee loyalty and retention, especially for caregivers who balance family needs with work. Organizations benefit from creating an environment that supports flexible work arrangements, leading to higher employee satisfaction and lower turnover.

An example of this culture in action includes:

1. Reading resumes bottom up. It often says and explains more
2. Making work flexibility a source of company strength (and differentiation)
3. Providing benefits that reflect company culture and values
4. Having at least one powerful demonstration of how the organization supports these values
5. Reinforces the company culture at every opportunity

Measuring Employee Engagement and Retention

Measuring employee engagement and retention is critical for organizations to understand the effectiveness of their retention strategies. Various methods can be used to measure employee engagement and retention, including employee surveys, focus groups, and analytics tools. Regular employee surveys can provide valuable insights into employee engagement and job satisfaction, helping organizations identify areas for improvement.

Analytics tools can help track employee turnover and retention rates, providing data-driven insights to inform retention strategies. Mentorship programs provide targeted feedback on career trajectories, which can also enhance recognition and engagement. By regularly measuring employee engagement and retention, organizations can make informed decisions to improve their retention strategies and ensure long-term success.

Conduct Regular Employee Surveys

Conducting regular employee surveys is an effective way to measure employee engagement and retention. Employee surveys can provide valuable insights into employee attitudes, perceptions, and experiences, helping organizations identify areas for improvement. Surveys can be conducted online or offline and can be tailored to specific organizational needs.

Regular employee surveys can help organizations track changes in employee engagement and retention over time, and make data-driven decisions to improve their retention strategies. By actively seeking employee feedback and addressing their concerns, organizations can create a more engaged and satisfied workforce, leading to improved employee retention and business success.

As Bruce Anderson sums up, “The product innovation, the stewardship, and the happy workforce all flow out of the profoundly simple goal at Patagonia: “Do well and do good.”

It’s becoming increasingly clear that companies have to compete for employee mindshare before, during, and even after they have departed. An engaged employee is a reflection of the quality of their journey within the company, demonstrating commitment to their work and colleagues, and actively participating in their ongoing development. Employee advocacy increases organizational credibility and attracts talent, further enhancing the company’s reputation.

The challenge for senior management is recognizing that it’s not simply an exercise in applying a well-established HR box-of-tricks but realizing that people form the intellectual capital; the bedrock, of an organization. This bedrock provides the foundations for future opportunities and successes and can no longer be ancillary to a company’s strategic aims, but must be at the heart of how it will compete and flourish in the 21st century.

Understanding Employee Retention

Employee retention refers to an organization’s ability to keep its employees over a specified period. It’s a critical aspect of human resource management, as high employee turnover can lead to significant costs, loss of productivity, and decreased morale. Factors influencing employee retention include company culture, job satisfaction, employee engagement, and opportunities for growth and development. Organizations that prioritize employee retention are more likely to achieve business success and maintain a competitive edge in the market. By fostering a positive work environment and addressing the needs and aspirations of their workforce, companies can improve employee retention and ensure long-term stability and growth.

Talk to us about transforming your internal comms into a retention powerhouse. Contact us now.