Why Employee Retention is Important

MX Bites / January 29, 2022

Every employee at your organization has their own story, a unique journey that has shaped them and affected your company in turn. Understanding these journeys, and how your organization can transform them for the better is one of Human Resources’ most important responsibilities.

An employee’s journey with the company represents certain stages in an employee life cycle management which in turn overlap with core HR responsibilities and may involve using talent management software. Therefore, it is sometimes also referred to as the HR life cycle, or simply the HR cycle. Recruiting new hires is a time-consuming and costly process, so,  how is it that software solutions are improving aspects of HR processes?

A typical HR department spends months determining what employees want. One way that businesses can elevate the performance of employees is to hire the best, most productive employees from the start. HR analytics helps managers better evaluate resumes, and other talent metrics to give more insight into which applicants are more likely to be driven, dedicated, invested, and engaged. Some indicators include being promoted within their organization, good references, a high rate of project completion, and other factors that HR analytics can help HR teams pinpoint out of candidates and sort through during the hiring process.

While the job market in some industries and regions favors employers, candidates with in-demand skills likely won’t have to wait long to find a new opportunity. Many companies never stopped hiring during the pandemic, and a lot that did are starting to expand staff levels again.

If you sense your business is at risk of losing top talent, you need to move fast to fortify your employee retention strategies. Here are some variables to consider as to why employee’s leave;

    • Inadequate salary and benefits
    • Limited career advancement
    • Boredom
    • A need for better work-life balance
    • Dissatisfaction with the company culture
    • Unhappiness with management
    • Concerns about the company’s direction or financial health
    • Feeling overworked and/or unsupported
    • The desire to make a change
    • More desirable opportunities at other companies

Great talent is scarce, and the influence of that talent has a remarkable impact on the productivity within an organization.  Companies should focus their efforts on the few critical areas where the best people have the biggest impact. 

For organizations, this is where things get interesting. After all, once you know how to engage with people in every phase of the employee life cycle, you’ll be able to attract the right candidates and, ultimately, improve your employee – and by extension your customer – experience.  

Here are factors worth examining;

    • Provide More Positive Feedback
    • Offer A Competitive base salary 
    • Provide employee recognition
    • Create fulfillment by encouraging employee creativity
    • Provide Opportunities For Growth
    • Empower Responsible Employees
    • Encourage your employees to give you feedback

The last few years brought on by the pandemic caused a large strain on most businesses. 2022 should be a year focused on having a strong, and stable team to ride out any economic waves.  Taking advantage of the growth that is flourishing in the economy in unprecedented times – separating you from the rest. Retaining talented employees will be vital to this, and businesses must realize that the small outlay will be paid back tenfold, through increased employer engagement, greater sales, and more open and vibrant company culture and reputation.

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