Most business owners and managers know that employee retention is a critical factor for the long-term success of the company. But, despite their best intentions, many companies are handling it all wrong. Here are a few common myths and mistakes that are happening with employee retention efforts:
Myth: High Pay = Better Retention
Fact: Money is a Weak Motivator.
Studies have shown that increasing employee pay doesn’t necessarily increase the person’s satisfaction. In fact, there are times when employee satisfaction might decrease after a pay raise, because other factors weren’t addressed.
Myth: Retention and Recruiting aren’t Related
Fact: Recruiting is the Root of Retention.
If you want to improve retention, then you need to look at the root of employee satisfaction: recruiting. By hiring the right people for the job, employee satisfaction goes up and retention improves. So, modifying recruiting processes should be a foundational aspect to improve employee retention.
Myth: We Can’t Afford to Invest in Our Employees
Fact: Training and Development is Critical for Retention.
Some companies hesitate to spend money on training and development, because they don’t want to make their employees more marketable to be recruited to other companies. Don’t be fooled into thinking that you should ignore the development of your employees though. Additional training typically has a positive impact on employee satisfaction. And can boost your retention rates.
Myth: Employees Don’t Want Higher Levels of Responsibility
Fact: More Responsibility Often Increases Loyalty.
Giving employees the opportunity to grow and accept higher levels of responsibility is actually a great strategy that can be used to increase employee satisfaction. When people are invested in the project that they are working on, they aren’t going to be searching for other employment opportunities.
Myth: All Employee Turnover is Bad
Fact: Some Turnover is Good.
Retention is important, but only when you are focused on retaining the right employees. If you have employees who aren’t making the cut, then turnover can actually be a good thing because it opens up space for you to hire the right team members. Focus on the type of team that you are trying to create, and develop an environment that attracts the people that you want to be working with. Letting go of old talent through voluntary and involuntary turnover is a great way to create an opportunity to develop a new team.
Myth: High Turnover is Unavoidable in Certain Industries
Fact: Every Industry Can Manage Retention Rates.
Some companies give up on employee retention efforts because they assume that turnover is unavoidable in their industry. It is true that certain industries have higher turnover rates than others, but that doesn’t meant that you shouldn’t be putting effort into your retention. Look for ways to increase employee satisfaction, and you will automatically boost retention in any industry.
Are you looking for ways to track your retention efforts and the growth of each of your employees? Contact us at AgileHR to learn more about software solutions that can streamline your recruiting and retention efforts.