Retention Strategy

What is a Retention Strategy?

Retention strategy is a practice deployed by the companies to reduce their employee turnover ratio and increase their retention rate. The primary objective of this is to make sure that the employees’ expectations are met to keep them engaged and productive for the longer term. However, aligning the strategy with the company’s goals for an ensured maximum return on investment is challenging.

What Are The Benefits Of A Retention Strategy?

Employee retention plays a vital role for any organization. If the turnover of the employees is high, it means you are losing both good and talented employees and the unproductive ones. A strong retention strategy battles the employee turnover well. Here are some of the benefits of having an effective employee strategy;

Employee loyalty and morale

When employees are treated well by the employer, they feel that their work is valued and appreciated. As a result, employees feel more loyal towards their organizational goals, and productivity increases.

Improved work culture

When the employees are aligned in a productive environment, they intend to work longer for the organization. They feel motivated and do not feel the burnout caused due to work pressure.

Cost-effective to the company

Retained skills of the employees can be the most beneficial for an organization. The employees who are trained and already adapted to the workflow reduce the need for hiring the new employees and the cost required for the hiring, training, and onboarding.

Better customer retention

Any organization's employees are the ones who interact with the customers. Your company's customer point of view entirely depends on your employees and how they treat the customers. The employees who are treated well reflect well on the customers. It results in better customer retention.

Factors That Affect Retention Strategy

It is essential to keep in mind about the factors that influence employee turnover while forming a strategy. The various factors that influence retention of the employees are;

• The environment of the workplace
• Work culture
• Various benefits that are offered to the employees
• Recognition
• Opportunities that enhance personal development

To implement an effective strategy, the employers should;

• Clearly mention the goals and targets of the employees
• Policies that are beneficial for the employees and the employers
• Invest in the growth of the employees
• Offer the various benefits
• Promote a communicative work culture
• Insist on the quality of the work instead of the quantity

Frequently Asked Questions

What are the consequences of a low retention strategy?

The lower retention strategy leads to employee burnout. Due to this the employee turnover ratio increases and the company loses its employees. The turnover might be of good employees too. If the strategy is not feasible the employees might feel demotivated to work and the environment in your workplace becomes unproductive.

Why is it essential to have a strategy that decreases employee turnover?

It helps your firm to retain the employee turnover. This keeps the employees acknowledged about the company’s transparency and the goals in a well specified manner.

What are the factors to keep in mind while building a retention strategy?

While building a retention strategy the employers should keep in mind about the organization's goals and their employee standards. This policy should promote employee engagement, improve the employees willingness to work for your firm, and increase productivity.

How to improve employee motivation?

To improve the employees motivation, a flexible strategy and policies should be implemented that encourage employees to work in a productive way.