As the bonus payout cycle approaches, it's important for the HR team to consider the potential impact of attrition. The costs associated with hiring and onboarding new talent—averaging around $10,000 per new employee—highlight the value of focusing on retention rather than incurring additional expenses and time associated with recruitment and training. Retaining your current team can not only save on these costs but also foster a more engaged, loyal workforce. To help with this, here are several simple yet highly effective retention strategies to consider:
1)Talent Mobility and Internal Transfers
A study by McKinsey found that internal mobility can reduce turnover by up to 30%. When organizations provide employees with opportunities to grow and move within the company, they are less likely to seek opportunities elsewhere.
Create internal mobility opportunities by allowing employees to move across different roles or departments to gain new experiences. Create opportunities for employees to collaborate on projects or join cross-functional teams, giving them exposure to different areas of the business.
Competitive Compensation and Benefits: When employees feel they are not being fairly compensated compared to peers in the industry, they may start looking for alternative job opportunities. Salary benchmarking helps prevent this by keeping compensation aligned with external market conditions.
Salary benchmarking ensures employees are compensated fairly based on industry standards, making it less likely they’ll leave for higher-paying opportunities elsewhere.
Regular adjustments based on benchmarking reflect an organization's commitment to rewarding employees for their skills, experience, and contributions.
If salary budget is an issue, companies can look at other fringe benefits such as
· Comprehensive healthcare plans, including mental health support and physical wellness programs.
· Training and skill development funds to encourage employees to upskill their skillset
· Offer Flexible Work Mode such as remote work or flexible hours to accommodate personal life demands, particularly for those balancing family or other commitments.
· Offer generous vacation policies and encourage employees to take time off to recharge.
2) Invest in Learning and development (L&D) initiatives
This is the most powerful strategies for retaining staff. When employees feel that their personal and professional growth is valued, they are more likely to stay with the organization long-term.
DBS runs its own DBS Academy, which provides employees with various opportunities to acquire new skills, enhance existing ones, and progress in their careers. This created an environment where employees feel valued, supported, and empowered to grow in their roles. This results in high employee engagement, which is directly linked to improved retention.
Clear Career Pathways: L&D initiatives provide employees with the skills and knowledge they need to advance within the organization. When employees see opportunities for career progression, they are more likely to stay committed to the company.
Leadership Development Programs: Offer leadership and management training to help employees move into higher positions, fostering loyalty and a sense of purpose. L&D programs help employees gain new skills, which can open up new roles or promotions within the company. Providing opportunities for career advancement is a significant factor in retention because employees are more likely to stay if they see a future within the organization
3) Strong Employee Engagement initiatives
Building employee engagement is one of the most effective ways to retain staff. When employees are engaged, they feel more connected to their work, their team, and the organization.
SATS runs employee recognition programs that allow peers to nominate each other for their outstanding work. This helps boost morale and reinforces the company's commitment to valuing its employees.
Wellness and Support: Provide employees with a range of wellness programs, including fitness facilities, mental health support, and access to health screenings, ensuring employees feel supported in all areas of their life
Meaningful Work: Participating in CSR activities allows employees to feel that their contributions are meaningful. Whether it’s through volunteering, charity events, or sustainability programs, employees derive satisfaction from knowing they are making a positive impact on society.
Article Written by
Pierre Lim
Atomic Recruitment Team Manager, HR Desk