Some employees have been happy with the company for more than a decade. While others are hard to retain. Their emotions are uncertain, and their efficiencies are fluctuating. It puts HRs into confusion and in a fix. They cannot decide whether to let the employee stay or let them go.
Exactly then, HRs shift their focus on effective tactics to improve your retention rate. Then only can HR personnel acknowledge and discover employees’ trajectory in a firm and how it should be.
So, in this blog, careful attention has been given to the ways of maintaining employee retention rate in a company.
What Is Employee Retention Rate Or How Do You Calculate It?
The employee retention concept is the stark opposite of employee turnover. Ultimately, this rate signifies the percentage of workers or employees who decide to stay in the organisation for a given period.
To calculate the employee retention rate, you divide the total number of employees staying in a given period by the total employees who started with day one. Later, you can multiply the calculation by 100 to convert it into a percentage figure.
Why is Employee Rate So Important for Firms?
Investing in calculating and managing retention rates helps the organisation in various ways. These are, but are not exclusively limited to:
- Bringing more innovation and creative ideas to the firm.
- Employees feel that they matter to the firm and C-suite management.
- Employees’ work gets duly notified, recognised, and appreciated.
- Top-performers feel that they can bring new changes to the company and carry that with self-confidence.
- Talent employees relate themselves with company culture and values, which improves their employee experience throughout.
- Positive word of mouth by employees who stay for longer periods in the firm.
- Increased loyalty from employees towards the organisation they work for more than 1-3 years.
- Employees can be true evangelists for the firm to draw in repeated customer or client orders.
5 Effective Tactics To Improve Your Retention Rate
Hire right from day one.
Make use of HRMS suites or software to hire right from the day. That’s the first amongst the other effective tactics to improve your retention rate.
Because hiring wrong means the entire tenure in the company would be a mess. In addition, employees can ruin their interpersonal relationships and bring more losses to the company if they are hired wrongly.
Contrastingly, using HRMS helps solve that problem. HR admins can easily use the employee rate formula embedded in the system. From there, they can keep track of the ongoing retention rate.
Otherwise, they have features like streaming onboarding, pre-onboarding, and screening processes. If that is in place, there will be a lesser scope of human error. Moreover, the algorithms can parse CV rightly as per the job requirements posted.
The system doesn’t involve bias, fatigue, or bounded rationality like obstacles. Because when the system reads each candidate’s CVs and HRs notes, it can recommend better options to the suitable hires.
Optimise the entire onboarding to offboarding process.
HR admins’ work does not stop at recruiting, staffing, or onboarding of the right employees. They have to gather insights as well. Because from these workable insights, managers would know answers to queries like:
- Why is the company hiring certain types of candidates mostly?
- Why are candidates leaving in the first 3/6/12 months?
- What % of candidates are filling the entire onboarding process?
- If that % is low – why is that? If high, why again?
- Where are the employees coming majorly from?
- Are these recruitment channels bringing more efficient employees to the firm?
- What other are efficient and cost-friendly recruitment channels available there?
- What steps are HRs taking in the particular company to stop the employee from leaving?
- Are those effective tactics to improve your retention rate working for them?
- Which ones are the most effective tactic for the firm? Which one is not?
- Are their exit interviews conducted for the departing employees? Is their F-N-F completed?
- Is the existing HRMS helping nurture, develop, engage, and acquire better talent?
The feedback from day one to the last should be clear and constructive. This helps HR admins roll out better job opportunities for the right people fit for their company’s culture.
A culture of recognition and reward is in place.
Employees love to know that their input matters. After all, they are on board for a reason. The company found those people job fit that is why they were initially hired. But what makes their journey in the company smoother is their timely recognition and rewards.
Using HRMS, HR professionals can offer the right rewards and recognitions:
- Star of the month,
- MVP of the month,
- The talent of the month, and many more.
These accolades help in the ego massage of employees as your HRs and TLs plan out effective tactics to improve your retention rate. With these recognitions, employees want to stay longer. They want to improve their contribution and become better each day.
After all, their teammates, TLs, and super seniors together witnessed their progress in the collaborative and creative – uKnowva HRMS. So, it eventually makes employees feel much better about their career growth and graph.
Invest in developing your employees’ talents.
Time and again, there have been remarks on the employee retention rate. It all comes down to employees finding their future, scope, growth, and engagement in the firm. A company’s culture matters a lot at this point. Because if the company believes in constant and continuous learning, employees will grow too.
They would get new opportunities and learning material to read and study. From there, they can take up newer, more challenging, and more collaborative projects. This helps build stronger team relationships, too, when employees work in different teams according to their upgraded calibre.
Next-gen and tomorrow-ready companies can use HRMS like uKnowva to transform their employees’ work life. They can learn and become industry experts while working on various projects assigned by the company.
Additionally, employees steadily develop a self-reliant and entrepreneurial mindset by taking up new courses or modules. With that in place, they bring more value and contribution to the firm’s environment – online or offline.
Read insights and take corrective actions.
HR admins and hiring managers must use survey insights stored, collected, and represented in the HRMS. From these insights, they understand which employees are inclining towards leaving the organisation – while which ones are scoring their best.
Insights also help HR executives to know the overall employee retention rate in terms of:
- How happy are employees with the company culture?
- How often are employees taking or applying for leaves?
- How often are employees punching in or out late?
- How often are employees (not) contributing to the polls and surveys in the system?
5 effective tactics to improve your retention rate discussed in the blog above are best applicable to tomorrow-ready and forward-moving organisations.
Because today’s firms have to realise the importance of knowing their employee behaviour before the issue is out of hand. The core tactics are to study insights, help employees engage, observe their growth, and help them grow.
Only then can companies work with the right people for the jobs that suit their calibre without excuses or failures.
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