Almost 9 out of 10 U.S. companies say employee retention is a top priority. However, these companies and their hiring managers are (painfully) aware that it’s becoming increasingly difficult to keep staff, and it could get even harder. A 2023 survey found that more than half of U.S. workers are thinking about quitting their jobs.
Why Retention Matters
Employee retention is no longer just a priority; it has become an essential part of any business strategy, with some leaders saying it’s now more important than revenue.
So what are companies doing to boost their retention rates?
According to the experts, business leaders are focusing on two key areas: creating a genuine culture of belonging and taking a proactive approach to people management.
“Employers who feel a sense of belonging tend to stay,” observes Adam Mumbo, an employment lawyer and retention adviser. “So companies recognize that if you want good employees to stay, then you have to create this sense of belonging.”
“The retention process should begin from the day your new employees walk through the door,” advises Mumbo. “And not after an employee has told you they plan to leave.”
The Cost of Retention
Employee retention is not an academic or box-ticking exercise. Instead, it has a direct impact on a business’s bottom line, for good and bad.
For example:
- A third of employees leave their jobs within the first six months, costing companies thousands of dollars in wasted recruitment spending.
- It costs around a third of the advertised annual salary to recruit the right person for the job.
- Employees who are committed to their employer and align with the company’s values equal higher profits. Research shows that an engaged workforce can increase productivity by over 20%.
How the Biggest Companies in the World Are Retaining Their Staff
Creating an inclusive work culture that prioritizes employee well-being is at the core of any successful retention strategy. But what measures are the best companies implementing to keep their best people?
Here’s a look at fourteen retention tips from some of today’s most successful companies.
Apple: Create a clear, strong vision that your employees can feel part of.
Alphabet: Coach and mentor your staff.
Microsoft: Provide flexibility by allowing staff to work a remote/hybrid model.
Adobe: Regular catch-up and informal meetings between staff and managers.
Netflix: Show your employees that you trust them.
Whole Foods: Include your staff in important decision-making processes.
Adidas: Build working spaces that encourage collaboration and engagement.
Nike: Use surveys to assess and understand employee well-being.
Nvidia: Build a culture of continuous learning and improvement.
Pfizer: Offer mental health support and stress management advice.
Walmart: Recognize employee achievements. Everyone loves a “well done.”
Indeed: Keep your high-performers engaged and motivated with new challenges.
United Airlines: Design personalized onboard programs that drive engagement and include from day one.
Dell: Build perks and benefit packages around what your employees want or need.
How to Hold onto Staff
There’s no one-size-fits-all approach to retention. Instead, a company’s strategy should fit around its needs and unique workforce.
But there are a few golden rules.
Companies should always listen to employee feedback, be flexible wherever possible, and create a culture of learning and development.
They should definitely avoid gimmicky perks like Ping Pong tables and team lunches. And pushing a workforce too hard just doesn’t work in the long-term. Research shows that creating a culture of overwork leads to burnout and higher employee turnover.
short url:
