Leaders want happy employees who are committed to the work they do. Retention is good for morale and preventing turnover lowers costs. If you’ve noticed dropping or flagging staff retention rates, there are solutions you can implement. Need ideas? Here’s what companies with the highest retention rates have in common.
1. Intentional Recruitment
No matter the industry, companies with a clear idea of who they want on their team are more likely to find the right person. And while everyone wants a top performer, leaders in high-retention companies aren’t afraid to go beyond what looks good “on paper” to find the best fit. For example, someone with an impeccable CV might seem like a great fit. But are they teachable? Do they respond to feedback well? Will they thrive in your culture and be committed to your values? These are all questions worth asking.
To answer those questions effectively, you had to have done some digging before the recruitment. Getting crystal clear on your values, culture, and priorities goes beyond being able to recite them. They should be deliberately incorporated into the employee experience, starting with their recruitment:
- Create an employee persona for any role you want to fill, so you’re looking for a person, not a bullet point list.
- Decide what your priorities are.
- Is it more important that someone is accomplished, or a fast learner?
- Are you looking for someone with strong technical skills, or a high degree of interpersonal intelligence?
Yes, all these are ideal. But it’s good to determine what you want your future employees and team members to lead with.
- Once you’ve set your boundaries and priorities, it’s time to craft your job descriptions and interview questions accordingly.
It takes time to define exactly who you’re looking for, but the hard work pays off. As an example, consider the airline industry. Resume.io reports:
“Over half (11/20) of the companies that keep their employees the longest are airlines. The high cost of security checks and training for pilots and attendants alike means that airlines are particularly invested in holding on to them. Generous stopover allowances and flight discounts are effective retainers, especially when they accrue with long service. Research has shown that giving flight attendants greater freedom to use their initiative and ‘craft their own role’ boosts engagement and longevity.”
Job seekers are savvy: they know exactly what they want from a workplace. When you know exactly who you want from a new hire—and you align with them from the start—sparks fly.
2. A Culture Worth Staying For
When we talk about workplace culture, we’re using an umbrella term for the way of life at a company. The give-and-take between people, the attitude toward change, growth, or disagreement, the perks and incentives: all of this and more are part of your company culture. And any facet of how your company operates can impact results for better or worse. It’s no surprise that having a strong, vibrant culture is a key driver of retention:
“Retention strategy goes far beyond raising wages and offering whatever fringe benefits the competition is dangling. In a strong company culture, executives know their people and what they need individually in terms of job flexibility, time off, and benefits. Managers help team members develop their skills and move on when appropriate, whether that involves a promotion, a lateral move, or following their dream elsewhere. That last possibility may sound like the opposite of a retention strategy, but there’s a real possibility the dream-chaser will either return with more skills and experience or become a loyal and grateful source of job referrals.
Having strong baseline policies, procedures, and values is a good foundation. But your culture should be dynamic. Embodying your values can look different for each person if that’s what works best for your team. For example, one person might need a more flexible schedule than someone else, but may be willing to do admin tasks. Someone else may work a very steady schedule, but might not be best suited for a particular project or initiative.
When people who already feel valued see that they’re trusted, and that their unique needs and strengths matter to leadership, they’re much more likely to stay invested in their work and remain a committed part of your organization.
3. Solid Compensation
It’s true: compensation isn’t the only thing keeping people at the same job longer, but it’s certainly critical. Just look at what Business Leadership Today learned when examining the link between employee pay and retention:
“According to a report by Lattice, compensation is the main driver of employee turnover, with 55% of employees quitting to take jobs with higher compensation. In fact, studies abound showing a direct link between competitive compensation offerings and higher rates of retention. Recent research by Harvard University revealed that increasing pay among warehouse workers by just one dollar per hour resulted in a 2.8% retention boost. Results also showed that every dollar per hour pay loss caused a 28% increase in turnover.”
The majority of the time, when you weigh the benefits of keeping a strong employee with the costs of losing them to another company, it’s easy to see why compensation is such an important investment for high-retention workplaces. Likewise, there should be a reasonable upward trend in compensation as positions grow and responsibilities increase.
4. High Referral Rate
Location Labs boasts a 95% employee retention rate. That’s impressive. And they’re putting up strong numbers across the board. According to recent data, “Our referral rate is really high. If you walk through the offices here, about 60% of our employees have referred another person who is also here. Over 40% of our new hires are referrals, including some referred by people who no longer work here”.
And it makes sense. If people are staying at their job long-term, and experiencing both personal and professional benefits from working there, they want more people to experience it. And just like that, their most satisfied employees, who are also likely among their top performers, become their most vocal brand ambassadors.
Ready to Build a Workplace Culture That Creates High Retention? Schedule a Discovery Call Today!
If you’re looking to transform your workplace into a high-retention powerhouse, take the first step. Schedule a personalized discovery call with our experts.
Discover how to:
- Enhance communication strategies to support healthy team dynamics and productivity
- Develop strong, effective leaders who drive success and inspire their teams
- Equip your workforce with personalized coaching techniques for growth and achievement
- Cultivate a vibrant, dynamic culture that keeps employees committed.
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