3 Statistically Proven Ways to Improve Employee Retention

Employee retention is an important component of building long-lasting success for any company. After all, training can be both very expensive and very time-consuming—and constantly training new employees can cause a company to stagnate. Investing in employee retention is clearly worthwhile; the problem is that many companies are unsure of how to go about this, exactly. Gone are the days where a simple raise in salary was the end all, be all of employee satisfaction. Perhaps that’s why 78% of companies recently reported in a survey that they have problems with employee retention. To combat this problem, the Chartered Institute of Personal Development recently conducted a study on the most important factors that go into boosting employee retention. Here are a few of the most important findings:

1. Cultivate Ownership. Nothing encourages loyalty more than a sense of ownership. The most straightforward way to do this is by encouraging employees to purchase stock in a company, however, ownership is about more than that. Employees who feel that they have autonomy feel more sense of ownership because they play a role in decision-making, for example, as do employees who consciously understand the role they play in the grander scheme of things.
2. Build Company Culture. A sense of belonging is just as important as a sense of ownership. Employees who feel that they belong to a specific company culture are more likely to stay. This means cultivating activities and relationships, as well as emphasizing certain values such as integrity, attention to detail, or environmental conscientiousness.
3. Show Employees that you Care. It’s not enough to say you care about employee satisfaction—in order to retain employees, companies must be willing to invest time and effort into making sure that their workers feel valued. This can be as simple as organizing a company picnic, offering free coffee in the morning, or ensuring that paychecks and direct deposit arrive on a fixed schedule without delay.

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