9 drivers that keep employee retention high

Employees are at the heart of the company. They run daily operations, push new ideas, and put your business ahead of the competition. 

So what would you do if half of your workforce left?

We didn’t make that number up. According to a Gallup study, 48% of workers across the globe actively looked for a job or watched for opportunities in 2021. With such high turnover rates, it’s time to understand the main drivers of employee retention and put them to practice.

‍Read more about the most recent employee engagement statistics, employee engagement solutions, or how to get started with virtual team building.

Main drivers of employee retention

Employees leave a company in one of two ways: 

1. Voluntarily because they decided to go
2. Involuntarily because they were let go. 

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Retention efforts focus on keeping valuable employees in the organization by making the workplace more attractive. 

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If your first thought now is money, you're not entirely wrong, but you're not really right either. You can improve employee retention, even if your competitors have bigger budgets.

A meta-analysis of employee retention research found 9 main factors that influence employee retention: 

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1. Compensation
2. Reward & recognition 
3. Job security
4. Work environment
5. Leadership
6. Participation in decision-making
7. Training and development
8. Promotion and opportunity to grow
9. Work/life balance

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Knowing what keeps employees in their jobs is the first step to preventing turnover. The next step is to act on it and make your company a desirable place to work.

1. Compensation and 2. awarding recognition

While it’s not all about money, 53% of surveyed US workers stated that compensation was one reason they were looking for a new job. Still, it’s important to show appreciation in other ways to keep everyone engaged in their daily work. 

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Three things you can start doing now: 

1. Give promotions where they are due.
2. Sign up for an employee engagement tool like Gomada that fosters recognition
3. Try Appreciation Shower to foster peer-to-peer recognition.

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3. Job security and 4. work environment

Give your employees a reason for staying loyal to your company. In particular, you should keep an eye on two areas: 

• Making the general working conditions as attractive as possible. This may include offering the option of remote work, providing the necessary equipment, or encouraging team members to take their PTO.
• Focusing on company culture. If people are aligned with an organization’s goals and values, they see meaning in their efforts and are likelier to stay with the company. 

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Three things to start with now: 

1. Schedule team building sessions to build better connections with your coworkers. You can get going in less than 10 minutes with pre-built activities. 
2. Offer a work-from-home/office allowance.
3. Set up a feedback channel to get tips for improvement and open up a conversation with all company members. 

5. Leadership and 6. high participation

According to research by Gallup, “only two in 10 employees strongly agree that their performance is managed in a way that motivates them to do outstanding work”. 

What’s more, 70% of variations in team engagement can be directly attributed to the leader. 

These numbers show not only how preventable disengagement is but also that you have the greatest impact on employee engagement through your leadership.

Good leaders communicate openly and are transparent about the decisions they make. They are also empathetic and value their team’s opinions and ideas.

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Three steps you can take to become a better leader now:

1. Take leadership training to improve your management skills.
2. Open an idea channel in your collaboration software to involve team members more.
3. Openly ask your team where you can improve. 

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7. Training, development, and 8. personal growth

20 out of 100 employees left their job in 2019 for career development reasons, according to this retention report. That means providing team members with opportunities to grow within your organization is essential. 

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While you can’t control people going for a full-on career change or returning to school, you can ensure they don’t feel stuck in their current positions. 

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Here are three things to start with now: 

1. Schedule some time (bi-)weekly for external training.
2. Create an overview of career paths in your company and how to get promoted.
3. Set aside a learning budget.

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9. Work-life balance

When employees were asked about their expectations of a modern workplace, a common answer was flexibility. Especially since the onset of the pandemic, workers value a work environment that is compatible with their life outside of the job.

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Three things to start doing now:

1. Keep working hours flexible so employees can pursue hobbies or take care of loved ones.
2. Encourage taking breaks. You can even set up regular “water cooler” meetings. 
3. Offer subscriptions to mental health & well-being apps.

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Make employee retention a comprehensive process

As you read through the various strategies, you may have noticed that improving employee retention is not a quick fix. Most, if not all, of these drivers are interrelated and require continued investment over time. Still, knowing what your team members value puts you in the best position to start working on employee retention. 

If you think you need some professional help, check out the best employee engagement apps or platforms specialized specifically on remote teams.

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