Knowledge Attracting staff has always been a challenge; retaining them is even tougher.
A 2023 Boston Consulting Group survey found that when employees were asked what makes them stay in a role, job security, fair treatment, enjoyable work, feeling valued, and being supported all ranked above compensation.[1] The same survey showed that great managers are associated with a 72% reduction in attrition when comparing employees that are very satisfied with their managers to those who are not.
In this instalment of our Lifecycle of Employment series, we explore why retaining and engaging employees is just as important as hiring them, and what employers can do to create an environment where people want to stay.
Retention and engagement are two sides of the same coin. Retention focuses on keeping employees’ long term, while engagement is about ensuring they are motivated, connected, and performing at their best. When employees feel valued and supported, they are less likely to leave and more likely to contribute to the success of the business.
So, how can organisations improve retention?
Retention can start with a cup of coffee. Sitting down with employees to ask what’s working (and what isn’t) opens the door to honest conversations. Be prepared for some tough conversations – receiving negative feedback is not always easy. However, taking the time to better understand employees’ perspectives can make all the difference.
Here are seven more strategies that drive retention and engagement:
1. Invest in development Upskilling employees is a win/win. This allows employees to perform better in their current roles and prepare for future ones. Below are some ways to put this into practice:
- Offer regular training sessions, workshops, or online courses relevant to employees’ roles.
- Implement individual development plans and schedule quarterly check-ins to review progress.
- Use employee surveys to identify skill gaps and areas where staff want more training.
2. Create pathways for growth – Employees often leave for better opportunities elsewhere. The following are some ways to create and ensure pathways for growth and progression within your organisation:
- Develop and communicate a clear career progression plan to employees.
- Have regular career conversations with employees to discuss aspirations and map out way to progress within the organisation.
- Encourage staff to apply for new opportunities within the organisation.
3. Communicate transparently– Sharing information openly, honestly, and in a timely manner with employees, builds trust and avoids misunderstandings. Explaining the “why” behind business decisions encourages engagement. This could look like:
- Scheduling regular team meetings and company-wide updates to share key information and business decisions.
- Using surveys to assess employee’s understanding of processes within the organisation and gather questions or concerns.
- Encourage staff to regularly raise issues or seek clarification.
4. Prioritise employee wellbeing – Supporting wellbeing is central to long-term retention. This can include offering flexibility, ensuring workloads are manageable, providing access to mental health or wellbeing resources and organising activities that promote wellness, such as mindfulness session. When employees feel respected and supported, they are more likely to stay engaged and committed.
5. Encourage continuous two-way feedback– Feedback should flow both ways. Employees may not realise where they can improve without constructive input, and employers often won’t know if something isn’t working unless staff feel safe to speak up. This open exchange builds trust, supports growth, and identifies opportunities for improvement. Below are some ways to encourage feedback:
- Implement regular one-on-one meetings between managers and team members to discuss feedback.
- Train managers to actively listen to employees and provide constructive feedback.
6. Recognise effort and milestones – Sometimes a simple thank you is all it takes! If someone stays late or finishes a project ahead of schedule, let them know that their effort is appreciated. Similarly, celebrate work anniversaries – if an employee does not feel valued, they might not be there in 12 months’ time. Ensure that employees know their contribution matters.
7. Invest in manager capability – As highlighted earlier, great managers can drastically reduce attrition, so equipping them with the right tools matters. Providing leadership and coaching training helps managers support their teams more effectively, give constructive feedback, and create an environment where people want to stay.
Investing the time and money into retention strategies will almost always be cheaper than having to recruit, onboard, and then upskill new staff.
Retention isn’t about one grand initiative. It’s about the small, consistent actions that show employees they are valued. Often, it can start with something as simple as a cup of coffee.
If you would like guidance on strengthening retention and engagement in your workplace or support with reviewing your current practices, please get in touch with the Black Door Law team.
Disclaimer: This information is intended as general legal information and does not constitute legal advice.
[1] 11,000 People Tell Us What Really Matters at Work and Why We Should Care, Boston Consulting Group, December 2023