How to improve employee retention at your company
Employee retention plays a significant role in ensuring your company's long-term success. According to the U.S. Bureau of Labor Statistics, a notable 3.3 million employees voluntarily left their jobs, underscoring the importance of prioritizing retention strategies. High turnover rates can lead to increased hiring costs, disrupt workplace culture, and negatively affect employee morale. By focusing on retaining talent, companies can create a more stable and productive work environment, ultimately driving better performance and growth.
What is employee retention?
Employee retention is a company’s ability to prevent job turnover. It includes the strategies and practices a company follows to create a supportive environment for employee needs, encouraging them to stay with the company for a long period of time.
The ability to retain employees comes down to a few factors:
A supportive environment
Build a workplace that meets employees’ holistic needs.
Satisfaction and engagement
Engage your employees in their areas of interest to help them feel appreciated and increase the likelihood that they stay with your company.
Healthy work relationships
Create a collaborative team atmosphere to sustain employee motivation and productivity.
Building an employee retention program
An employee retention program is a set of initiatives and activities a company implements to minimize employee turnover and improve employee loyalty and satisfaction.
Here’s what to consider when implementing a retention program for your company:
Determine key problem areas
Analyze your current retention rates and identify the main causes of turnover using employee surveys and exit interviews.
Establish your retention goals
Create goals that are attainable and measurable. For example, you may want to reduce voluntary turnover by 10% from the previous year.
Develop retention strategies
Choose a retention strategy that aligns with your key problem areas. For example, if your employees frequently complain about compensation, create a communication plan to better illuminate your salary decisions and supplement comp with well-liked perks and benefits.
Get leadership buy-in
Align with leadership to receive top-down support and garner participation in employee retention activities. When change starts at the top, it’s easier to implement throughout the company.
Track and modify your retention program accordingly
Review your goals against metrics to know what’s working so you can focus resources on the right strategies.
How to calculate employee retention rate
Tracking employee retention will help you identify and address turnover issues so you can create an effective long-term retention strategy. To track retention, begin by deciding on a timeframe to measure. Then you’ll need to calculate the number of employees on both the first day and the last day of that period. Note that any employees hired during that period should not be included.
You’ll want to check your retention rate against industry benchmarks to see how you stack up and whether you need to implement a retention strategy at your company.
ClassPass can make a difference in employee retention
Studies show that healthy employees are more engaged and feel valued by their company, increasing the likelihood that they stay with their current employer.
The ClassPass Corporate Wellness Program supports employee physical and mental health by providing access to a vast array of wellness services, studio fitness classes, and gym sessions. The program is shown to directly enhance job satisfaction, work-life balance, and employer perception.
of employees say that their overall well-being has improved after joining ClassPass
of employees say ClassPass has had a positive impact on their work-life balance
of employees who have ClassPass as a benefit feel that their employer cares about their health and well-being
