Why is employee retention important now?
Good employees are the backbone of an organization; they add much value to the organization. Retaining employees and top talent is vital for an organization’s growth. Without good employees, a company will not be successful.
1 in 3 Gen Z workers plan to switch jobs within the next six months, with flexibility, growth and employee benefits rising as key motivations for staying or leaving.
Gen Zs and younger Millennials entering the workforce are reshaping it with different priorities. They are more likely to quit and switch if their job doesn’t align with their goals or lifestyle. In this situation, retaining young talent has become a major hurdle.
Why does employee retention start with better employee benefits?
When a trained and experienced employee leaves, a company loses far more than just an employee. It loses institutional knowledge, momentum, and productivity. On top of that come the costs of hiring, onboarding, training, and the time it takes for a new hire to become fully effective. Team morale can also take a hit when colleagues see people leaving especially when gaps in employee benefits and support become more visible.
That’s why retention is always better than replacement. Investing in your young talent through meaningful employee benefits, career growth, and corporate wellness support is more cost-effective and more valuable for long-term business growth.
What is employee retention?
Employee retention is an organization’s ability to retain employees for long durations of time. It is when employee turnover is low and employee loyalty is high.
To maintain satisfactory levels of employee retention, it is necessary to create a healthy working environment where employees are motivated and satisfied. The trick is to create an environment where employees want to build a future.
Why should companies care?
For a company’s sustained success, it is necessary to retain top talent who have the skills and the expertise. While bringing in skilled professionals is valuable, benefits come from actually keeping them. Good employee retention is more than merely reducing turnover numbers. When employees feel committed, there is a surge in productivity and morale, also there is no knowledge drain. The entire organization is better positioned for long-term growth. So, retaining employees is a strategic advantage.
So, HR professionals need to give their employees compelling employee benefits reasons to stay.
FACT BOX: Employee benefits of employee retention
- Lower costs
- Increase in productivity
- Increase in morale
- Improvement in efficiency
- Better reputation
- More experienced employees and retaining knowledge.
What do young employees actually want today?
The Gen Z and the Millennial workforce have different priorities than the previous generation. The work culture of these populations is also dissimilar.
This generation’s top priorities and preferences are
- Money
- Meaning
- Mental and physical well-being and
- Work-life balance
Fair remuneration is the promise of employment; therefore young professionals also seek competitive salaries and satisfactory packages. When employees don’t find growth opportunities, they feel stagnant and unfulfilled. Gen Zs and Millennials want to learn and grow if their job does not provide these, they seek employment elsewhere.
Young professionals prefer a reasonable work-life balance, as overextension can lead to burnout. For this generation, a toxic work culture is unacceptable. They are more aware of the impact of toxic work culture and they prioritize mental health and physical well-being. So, they seek workplaces that are inclusive and respectful. If work culture is unwelcoming, lacks inclusivity or doesn’t encourage innovation and collaboration, young professionals are likely to feel disconnected and seek other opportunities elsewhere.
FACT BOX: Remember the 3R’s of Retention
Respect
Recognize
Reward
What are the employee retention strategies ?
1. Paid time-off
Paid leave benefits are essential as they support work-life balance and reduce burnout. It shows that the organization values its employees. Maternity and paternity leaves, along with mental health days, have gained increasing importance as companies recognize the positive impact of these policies.
2. Group health insurance covers
Offering comprehensive insurance benefits, including group health insurance, dental, group personal accident and group term life insurance, can significantly reduce the risks faced by employees and provide security. They improve employee loyalty, increase satisfaction and promote commitment.
3. Flexible working hours
Balancing personal and professional responsibilities is a major challenge. Offering flexible and remote work options can help reduce this burden, allowing employees to work more comfortably and maintain a better work-life balance.
4. Growth opportunities
Providing development, training and mentorship along with a clear career growth plan is important to prevent stagnation and dissatisfaction. Tailored career plans that match employees’ skills, interests and career aspirations provide a secure future to work towards. By offering opportunities such as upskilling programs or sponsoring further education, companies show genuine interest and willingness to invest in their people. This strengthens employees’ trust, employee engagement and overall regard for the organization.
5. Monthly recognitions
Companies that prioritize and support their employees tend to do better in the long run. Since employees are the foundation of any organization, it’s essential to recognize and appreciate them regularly. Monthly recognition through both monetary and non-monetary incentives can boost motivation, engagement, and overall performance.
6. Weekly fun activities
Icebreakers, weekly fun events and team-building activities play a key role in creating an engaging work environment where young professionals can form meaningful connections. This is necessary for a workforce that works together and stays together.
These are some examples of employee retention strategies. The overall goal is to create a workspace where young professionals feel that they are part of a supportive and dynamic workplace ensuring that employees remain motivated and committed to their role.
Key Takeaways
- Gen Zs and millennials have different priorities of employee benefits that need to be addressed by the organization for better employee retention.
- Retaining employees is more cost-effective than hiring new employees.
- Good employee benefits packages help improve retention.
- Investing in a healthy work culture, inclusivity and diversity programs aids employee retention.
.svg)
.svg)
