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08.18.2021 - HR Tidbit

HR Tidbit - Employee Retention

August 18, 2021

Employee Retention

Retaining skilled employees is vital to the success of a business. A high rate of employee turnover can result in a loss of knowledge and skills and can negatively impact a company’s bottom line. The cost of losing an employee includes not only lost productivity, but also the expense of recruiting, selecting, and training a new employee.

WHAT ARE A FEW FACTORS THAT AFFECT RETENTION?

  • Compensation
  • Employee Recognition
  • Challenging and fulfilling job responsibilities
  • Positive relationships with immediate supervisors and coworkers
  • Employee Training
  • Good leadership
  • Structured Orientation Program For New Employees
  • Mentoring
  • Benefits
HOW CAN YOU INCREASE RETENTION?

  • Acknowledge and reward your employees’ contributions
  • Maintain a fair and competitive compensation package (internal and external market)
  • Provide an Open- Door communication policy and encourage new ideas
  • Provide training programs and mentoring to enhance skills development, learning, and career growth
  • Provide employee assistance, wellness, and health programs
  • Offer flexible work arrangements, such as varied hours and the possibility of telecommuting to support work-life balance
  • Provide promotion and leadership opportunities
To get an understanding of the employee’s job satisfaction and work environment you may want to conduct an Employee Attitude Survey. This survey will allow workers to give confidential feedback about their job satisfaction, and suggestions for how the work environment may be improved. To foster a relationship of integrity and trust among company employees, survey results should be communicated effectively and acted upon promptly.

Employee Attitude Surveys

Surveys can be conducted in a variety of ways--a paper questionnaire, on-line employees’ survey, or by hiring a third party to do all the survey work for you. Regardless of the method used, you should review and analyze survey data. Survey results can provide you with key information on how to improve workplace processes, policies, and morale to retain existing staff and attract new employees.

WHAT ARE SOME BENEFITS OF THE EMPLOYEE ATTITUDE SURVEYS?

Employee attitude surveys can bring many benefits to organizations that include:

  • Opportunity to facilitate a company’s development and organizational change
  • Opportunity to focus on the company’s specific needs or gaps in service or training
  • Opportunity to focus on the company’s needs and leverage its strengths
  • Informs the company on which actions will create problems for the employee
  • Provides management with employee feedback on company morale and provides employee feedback (both positive and negative) on the internal health of the company
  • Measures the impact of current programs, policies and procedures
  • Provides information on how to motivate employees and improve job satisfaction
WHAT TOPICS SHOULD YOUR EMPLOYEE ATTITUDE SURVEY COVER?

  • Employee Satisfaction
  • Creativity
  • Obtaining Results
  • Adaptability
  • Strategic Leadership
  • Analytical Thinking
  • Functional Expertise
  • Employee Compensation- Is it competitive with market data?
  • Human Resource Department Services
  • Communication with employees and management ability to listen
  • Mentoring
  • Senior Management
  • Interpersonal Relations
  • Teamwork
  • Professional development opportunities (promotions)
  • Training opportunities
  • Benefits
  • Workplace Flexibility
  • Customer Service
  • Employee’s career plan
  • Source of employee’s stress

HOW DO YOU DEVELOP A QUESTIONNAIRE?

You should develop a questionnaire that meets the needs of your company. Typically surveys contain items that are rated on a 5 point scale. These items may be developed to measure different dimensions of the organization (e.g., communication, teamwork, leadership, initiative, management, compensation, ...). Questionnaires also typically include one or more open-ended questions to solicit written feedback.

Questionnaires typically include from 50 to 100 items. When estimating the amount of time to complete the questionnaire you should estimate about 1 minute per questionnaire item.

Sample Questions :

  • [Company] does a good job communicating information about changes that may affect employees
  • [Company] has a clear corporate "culture" and values
  • [Company] has a strong focus on the customer service and satisfaction
  • [Company] is a catalyst of change and innovation
  • [Company] makes good use of my skills and abilities
  • [Company] offers career paths in my job
  • [Company] offers me the necessary training to do my job well
  • [Company] offers real opportunities to improve my skills
  • [Company] offers technology to meet my needs and those of my customers

ENSURE EMPLOYEES THAT THE SURVEY IS CONFIDENTIAL

Steps must be taken to ensure the confidentiality of the feedback results. For example, the feedback ratings from several employees should be combined (averaged) to mask the identity of an individual employee. Comments or written answers to questions may be summarized in the results to mask the identity of the author. The confidentiality helps ensure that the results are genuine.

ANALYZE THE DATA

Basic data analysis would include averages of ratings. Types of analyses include: Performance Dimension Summary; Summary-Performance vs. Expected; Individual Item Ratings; Item Ratings-Performance vs. Expected (normed); Highest- or Lowest-Rated Items (shows individual's strengths and weaknesses); Group & Organizational Ranking, and Recommendations for Development.

You may want to analyze the data by organizational division or department to assess group and organizational strengths and weaknesses. This can be used to support or promote training and organizational development.

Examine data through written interpretive reports, which summarize the results of your study.

Feedback results should be shared with the employees.

The most important step in this process is Acting on Employee feedback and communicating to the employees what actions management has taken or is in the process based on the feedback received.

Another item that can increase retention is a Health & Wellness Program.

HOW DO YOU DEVELOP A HEALTH & WELLNESS PROGRAM?

A company health and wellness program refers to activities or initiatives undertaken in the workplace that are designed to support employees’ general health and well-being. Programs will often differ from business to business in terms of the range of initiatives offered.

Health and Wellness Initiatives

  • Providing Group Health Insurance to Employees
  • Providing Dental Insurance to Employees
  • Providing Vision Insurance to Employees
  • Providing healthier foods in the workplace, including snacks
  • Providing desk chairs that are ergonomically designed to support the back
  • Empowering employees to include physical activity in their working day, such as by encouraging walking at lunch
  • Providing incentives such as subsidized memberships to local health clubs
  • Offering Incentives for Healthier Habits (Weight Loss, Smoking Cessation)
  • Offering Health Testing and Incentives to improve Test Levels
  • Providing flexible work hours
  • Providing filtered water
  • Regularly having your air-conditioning and heating systems checked and maintained
  • Provide Health & Fitness Webinars
  • Hold Health Fairs at Workplace
  • Proper Disinfection of work areas
  • Health & Wellness Newsletter
  • Providing access to Employee Assistance Programs

Wellness programs are subject to certain federal requirements. For additional information on these requirements go to the Department of Labor website at dol.gov.

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