Employee retention is a big issue for many companies and not only because even entry-level employees cost 50% of their salary to replace. A business can only strive when all employees are engaged and happy with their roles and keeping talent is also crucial.
Statistics on employee retention can provide some insight into the general mood among the employees, so let’s take a look at the key takeaways:
- One-third of new hires quit after ca. 6 months
- Each month, 3 to 4.5 million employees quit their job
- 76% of employees who feel their work isn’t valued look for other job opportunities
- 94% of employees would stay longer if a company invested in their learning
- Costs of retention stand at ca. 33% of an employee’s yearly salary
- The overall turnover rate is 57.3% — 25% is voluntary turnover, 29% is involuntary turnover and 3% for high-performers
- 75% of the reasons for employee turnover can be prevented
- The number one reason for retention is that employees are not being challenged at work
Keeping these stats in mind, we need to add another variable here, namely hybrid work models. Nowadays, the workplace is more dynamic than ever, with every company having the opportunity to offer a little something to employees looking for different challenges.
Let’s take a look at the options.
Hybrid Work Models
According to McKinsey & Company’s definition, there are six different hybrid work models:
- Almost entirely off premises – mostly remote work with no office space
- Almost entirely on premises – limited remote work, large office space the majority of managers and workers
- Partially remote work, large office space – the majority of managers and workers spend most, but not all, of their time at the office
- Partially remote work, multiple hubs – multiple offices with the workforce dispersed among them
- Multiple microhubs – management and employees are dispersed across small microhubs located in different cities and countries
- Partially remote work, with flexible office space – no permanent offices; rented flex space used for periodic collaboration (but not connectivity)
A brief look at the opportunities shows that all kinds of employees can actually be incorporated into the big picture.
Let’s see how to boost retention for each employee type.
Are your employees happy with their roles? How do you find out? How can you change things, if they aren’t? How do you monitor this when they are working remotely?
These are just some of the key questions addressing employee engagement. To get honest answers, rely on anonymous feedback. Anonymity ensures honesty, so make use of it. The easiest way to learn how to retain the employees is to actually ask them. It’s that simple!
With remote workers, there’s one notable issue: you don’t get to see them every day. That’s why you cannot be sure how they feel about their job.
It is, therefore, important to include them in regular team meetings and activities and keep in touch as you normally do with traditional employees. Also, consider teachable alternatives and courses that could be beneficial. Remote workers are rather used to online courses and value the opportunity from the employer.
Some people don’t consider the fact that freelancers build a steady client basis, and work regularly for companies for extended periods. These freelancers are crucial to keep on board, since they come with out-of-the-box skills that regular team members don’t possess. If some of your freelancers are from different geographical locations, consider cross-cultural training… and don’t forget eLearning opportunities.
Many people think digital nomads don’t work for any specific company. But that’s not always the case. As long as the company they work for allows remote work, they can choose to work anywhere there is Wi-Fi, paying attention to locales that offer the best foreign tax credits.
In case of digital nomads, though, additional engagement may be needed so that they can feel part of the team. Think in terms of regular online meetings and providing necessary apps and tools to keep communication alive.
Employee retention is, as you can see, a continual process that evolves all the time. Different people look for different stimulants but it is safe to conclude that generally everyone wants to be happy with the work they do.
Consider hybrid work models so that you can offer the best work format to each and every employee and make sure to set up regular anonymous feedback and provide necessary apps and tools to keep communication going smoothly.
Finally, offer eLearning opportunities and cross-cultural training and, overall, be flexible. Any approach can be adjusted as long as the basic premise is stable, so let your company grow with the help of all your employees. In the long run, this is what makes continual success not only possible but also sustainable.