Factors Affecting Employee Retention: Another Look

Factors Affecting Employee Retention: Another Look

Human resources directors in almost any industry will admit that one of the toughest aspects of their job is retaining committed and talented staff. Today’s job market is not just competitive, but some would argue that it’s hyper-competitive, like no other time before. When fast-food chains can compete financially with the health care sector, we’ve got some problems. As a result, HR directors, and other leaders in their market must take a long, hard look at the concept of retention, factors influencing it, and best-practice strategies to retain a talented workforce.

Employee Retention: Voluntary Versus Involuntary

Sometimes, to solve today’s most troublesome problems, we’ve got to go back to the basics. This certainly applies to employee retention, which is one of the hottest topics in any industry in the U.S. and around the globe. The real problem with retention involves voluntary turnover, which means that a valuable and talented employee is leaving for some reason. Involuntary turnover occurs when unproductive employees are let go for poor performance. Some staff may voluntarily leave due to personal or family issues like sick parents residing in another state. The core problem is when employees leave because of organizational flaws like the following:

  • Lack of promotion
  • Poor working conditions
  • Unfair treatment from management
  • Lack of respect, autonomy or recognition
  • Poor pay or benefits

These are unfortunate reasons for good staff to leave. Each one of these organizational flaws or problems can be improved or resolved. It’s a shame when skilled employees leave for silly reasons. It’s also incredibly expensive.

Culture and Compensation Matter

Generally speaking, employees don’t leave a culture which they resonate with and embrace. It’s like leaving a happy and healthy relationship. It doesn’t make sense! A culture that promotes work-life balance, opportunities for growth and advancement, support from management, and fair compensation is more likely to keep talented staff. Employees who are happy with the workplace culture are generally more committed, less likely to look for another job, and report greater satisfaction.

Retention Starts with Recruitment

It’s almost like playing a record that is already worn out, but finding, hiring and training the right person for the job is the ultimate best practice for retention. Employee-culture fit is important and is usually associated with employee commitment to stay. While recruiting, hiring and training are important steps in the retention chain, others need attention as well, including:

  • Positive, supportive and genuine leadership
  • Routine performance appraisals
  • Continuing development
  • Some flexibility in scheduling
  • Autonomy and independence on the job
  • Support of families
  • A focus on job satisfaction
  • Positive employee-management relationships
  • Clear communication
  • Strong team-work
  • Some fun on the job

Final Thoughts on Factors Affecting Employee Retention

It simply is not enough in today’s hyper-competitive job market, to go fishing for talent, lure them in and provide some basic training regarding their job. Today’s employee has a lot of options and around 25% of staff who are currently employed are actively seeking another job. Companies have got to get it right in every nook and cranny that affects their staff. When good employees leave for bad company behavior, everyone loses.