31 May With 5 Million Separations Each Month, What Can Your Company Use as an Employee Retention Solution?
On the last business day of March, 2016, the U.S. Bureau of Labor Statistics (BLS) reported 5.0 million separations (which includes layoffs, quits, and firings). The source also cited the fact that this showed little change for previous months.
Here’s another startling fact from the BLS: the quit rate (2.1%) is nearly double the layoffs and discharge rate (1.2%).
Clearly, companies need to seek out new avenues for reducing turnover and retaining their top talent. But what, exactly, is the best employee retention available?
A Proactive Approach
Recruiter.com recommends showing appreciation for your employees. The key word there is “showing;” because simply telling your employees that you appreciate them isn’t enough. But what can managers do to physically show employees that they’re appreciated before they make the decision to leave?
Identify Their Needs
To express appreciation for employees, managers must first identify what their associates need from them. One effective way of doing this is implementing stay interviews. During these brief, informal one-on-one meetings, managers will prompt employees to answer questions about how the company and its processes could improve, as well as what the employee likes about the job and why he/she decides to stay with the company.
Act On Those Needs
Once an employee has identified what needs to change to make his/her work life more rewarding, less complicated, or simply better in general, it’s important that the manager builds trust by following through. According to Small Business Trends, trust is the key factor that drives a stay interview’s success. Stay interviews are effective in themselves as they show employees that managers take a genuine interest in their satisfaction, but they become much more powerful when both parties become bound by a stay plan. The stay plan outlines action items for both parties to take care of to improve the associates’ work conditions, and progress should be measured according to a predetermined schedule.
Once you begin implementing these processes, you’ll improve retention, with some added byproducts, such as better communication among managers and associates, and a more engaged workforce.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Stay Interview Software, STAYview, click the button below!