What is Employee Retention?
Employee retention encompasses the strategies and practices a business employs to minimise staff turnover. By cultivating a positive work environment and offering a range of benefits and perks, companies can attract top talent and inspire them to stay long-term, boosting labour retention.
Measures that companies undertake to improve labour retention levels often fall into one of the following categories:
- Employee Benefit
- Company Incentives
- Promoting A Work-Life Balance
- Employee Wellbeing & Mental Health Support
- Staff Training Solutions
- Job-Oriented or Career Opportunities
- Flexible Working Arrangements
- Transparency – such as in improving the accessibility of HR or Payroll
How Labour Retention Benefits Your Business
The key benefits of high labour retention rates for these businesses usually include:
Reduced operational costs (talent attraction, recruitment, and training costs are reduced)
A positive work environment that leads to improved company morale, Employee Engagement, and better staff-manager relations
Increased overall productivity, which helps to achieve higher profitability and growth potential
Better business prospects from the ability to plan ahead with confidence and limit concerns from investors
A better customer experience, with customers dealing with experienced, knowledgeable staff
Elevated job applicant experience, mean your potential new hires can speak to current employees and understand the positive work environment and employee experience day-to-day
Why is Employee Retention Important?
Some studies estimate that the cost of replacing an employee can amount to 6-9 months of the position's annual salary through significant training costs, productivity loss, and other expenses tied to recruitment and operating with a reduced team.
Because of this, small and medium-sized businesses often feel the pinch of poor employee retention the most. Following the pandemic and the subsequent wave of employee turnover during the 'Great Resignation', many companies simply can’t afford to keep replacing employees.
Employee engagement and labour retention are intrinsically linked, so by focusing on services and benefits that improve engagement, you can also positively influence your retention rates. Employee engagement is essential for smaller companies as it affects customer satisfaction, productivity, sales levels, and future planning capabilities.
How does Hive360 help?
Our Employee engagement platform is designed to offer your business support and incentives for all staff, temporary workers and potential recruits. We provide unique and dynamic employee benefits, which are delivered through our Engage App. This comes as standard with Our Employment And Payroll Solutions and features an array of vital wellbeing support to help strengthen your workplace environment.
In short, a varied set of perks alongside clear, secure information regarding pay and pensions has a huge impact on improving labour retention — so that is exactly what we offer.
Hive360 can Benefit your Business and boost your labour retention - find out more on our Pay, Pension & Perks Services Here.
