The Necessity of Having a Strong Retention Rate

If the last few years were any indication, the only constant is change, and the workplace is no exception. In 2021, organizations around the world grappled with the effects of an unprecedented pandemic forcing HR teams to rethink their approaches and challenging them to keep pace with the seemingly forever changing dynamics of the new workforce. If they can’t keep up, they face losing top talent. 

Losing top talent is inevitable at any company, employees move on and HR teams again embark on the talent war journey. Lately, the journey seems to be more and more treacherous, enabling HR teams to pause and regroup to avoid the throes of attrition. For most companies, a simple, yet very necessary term could help shine a light into the retention of its employees: employee retention rate. 

What is the Employee Retention Rate? 

Employee retention rate is a metric that measures the percentage of employees who remain employed over a specified period of time.

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Retention Rates Matter

Retention rates are a simple way for HR teams to pinpoint and address weak areas during that specific time period and will indicate what areas of focus an organization should reinforce.

The Key to a High Employee Retention Rate

If there’s a good retention rate within the organization, chances are high that the organization is committed to providing an environment that is engaging, motivating and positive. Here are some ways companies ensure a high retention rate:

• Community alignment. Having employees that are a part of a bigger vision, or a mission that they align with, provides purpose and a sense of community. The more employees are invested in the organization, the more they will want to stay. 
• Flexibility. If 2020 taught anything to the business world, it was to roll with the proverbial punches, and pivot when necessary. As humans, things happen, and it’s only the companies that understand this and grant employees the flexibility they need to get the job done, that are most successful.
• Benefits. It’s a nice perk to get lunch catered once in a while, but to have a company that provides real tangible benefits that impact your life such as, fully paid healthcare, family building reimbursement, education/tuition reimbursement, and paid parental leave, can be invaluable. Recently though, companies have also turned their focus to providing an environment that elevates the overall employee wellness or holistic health of an employee, meaning they are doing everything they can to ensure that the mind, body and spirit are taken care of with offerings like meditation subscriptions, mental health services, addiction treatment, and in-house yoga/exercise classes.  
• Employee Experience. Providing a smooth onboarding experience, prioritizing personal growth and cultivating a positive work culture are some of the best ways to provide a great employee experience. 
  

While the “key” to a high retention rate shows success amongst companies, the real key to success is reflecting on your retention rate, being vulnerably open to feedback, listening to employees and making room for a more inclusive, flexible, holistically healthy and positive change - the only constant.

Once a company understands the driving factors behind its retention rate numbers, only then will real change happen - ensuring that the top talent at the company stays at the company. 

Need help on implementing a holistically healthy employee benefits strategy? Quit Genius can help.