India is experiencing a surge in the number of employees leaving their jobs this year. While the attrition rate across all industries was 12% last year, a recent report in The Economic Times indicates that this figure will climb to 19% in 2022.
The reasons for this upward trend in attrition vary from employees feeling there is no career growth or professional development, to sheer boredom in their jobs. Unless organisations come up with good employee retention strategies, they could lose more and more employees in the future.
What is employee retention?
Employee retention is the number of employees that an organisation manages to retain over a certain period of time. It is normal to have a small percentage of resignations every year. But if your retention rate continues to drop year after year, this means all is not well and it’s time to take your employee retention strategies more seriously.
Problems businesses face in retaining employees
The struggle to hire and retain good talent is an ongoing challenge for all businesses. Let’s look at a few problems that many companies struggle with.
Matching up to competitors: Many employers are unable to cope with stiff competition, resulting in the loss of good talent to competitors.
Meeting employee expectations: Some employees have unrealistic expectations and employers are not willing to pander to these. Expecting frequent perks and salary hikes seem quite rampant among employees these days. Such employees will simply put in their papers if their expectations are not met.
Challenges in hiring: When there is pressure to recruit talent in large numbers, hiring managers may not fuss over details. They may hire those who are suitably qualified but do not have the right mindset. Such employees usually do not last long in any organisation.
Increase in job opportunities: Employees are now spoilt for choice since there is an increasing demand for talent in the job market. They switch jobs to join established brands, or to get better salaries or a promotion.
Why do employees leave and how to manage a resignation
Now, let’s look at the scenario from the employees’ point of view and find ways to resolve some situations.
No clarity in career path: If employees are unable to see a clear career path with opportunities to learn and grow, they will eventually leave you. Preparing a career graph that clearly indicates professional development in the company will motivate them to stay with you.
Lowemployee satisfaction: If employees are not happy with their job, they are sure to look for fulfilling jobs elsewhere. Creating a comfortable work environment, rewarding their accomplishments, and fostering respect can boost their morale tremendously and make their career growth with you, worth it.
Lack of strong leadership: Strong leaders are the pillars of any organisation. Employees look up to them for guidance and support, especially at work. If you lack good leaders in your organisation, it’s time to bring in a few who can help you recruit talent and implement retention strategies.
No interest in work: A survey carried out by the U.S. Bureau of Labor in 2021 indicates that over 47 million Americans gave up their jobs, mainly due to COVID-19. Labelled, The Great Resignation, this trend is slowly picking up in other countries with many young Indians, especially women, deciding to leave their jobs and pay more attention to family. Creating a rich, vibrant work culture is one way to entice employees back to work.
Strategies to improve employee retention
As efforts to bring in good talent continue to increase, many organisations are now brainstorming employee retention strategies to survive in the market. Let’s look at a few strategies that can help you retain employees.
Regular employee surveys: As part of the resignation process, it is a good idea to collect honest feedback on reasons for leaving. You may not always get a forthright answer but if you collate this data over a period of time, you may be able to see some common patterns that may give you insights into specific issues within your organisation and help you take corrective steps.
One-to-one interactions: Many employers fail to have direct interaction with their employees. They come across as too senior or out of reach, especially for junior employees. Bridging the gap in communication between employer and employee can help develop closer relationships that help with employee retention.
Robust communication: With most companies offering work-from-home options to their employees, the gap in physical contact and communication is widening. It is good to come up with a strategy where employers and managers regularly communicate with all employees through online media channels such as emails, video conferences, or even phone calls.
Charting out a good action plan for employee retention is the best way forward. Here’s where we, at Pasona, can assist you. We can help you with employee surveys that will give you insights into what employees want from employers. Our training programs are industry-specific and aim at empowering and encouraging employees to stay with you. How about dropping us a line to get acquainted? We’d love to hear from you!