What Are the Top Three Reasons for Employee Retention?

Employees expect reasonable and flexible work schedules such as permission to telecommute.

It costs companies an average of $4,000 to recruit, hire and train an employee, according to a 2011 article by "Entrepreneur" online. That is why retaining quality employees is essential. Companies can better ensure employee retention by properly matching candidates' skills and education to available jobs. They can also invite a prospect to spend a day at the office for a realistic preview of the work. Companies must then provide three essential elements for retaining these valuable workers.

Reasonable Work Schedules

Employees are more likely to quit their jobs if they are overworked, according to "Business Know-How," an online business reference site. Employees become frustrated when they are doing the work of multiple persons. This forces them to work extra hours or weekends to complete assignments. Employers can better retain workers if they limit their schedules to 40-hour work weeks. Workers also enjoy flexible work schedules. For example, a secretary may want to start work a half hour early so she can leave at 4:30 p.m. Employees also want to be able to take off when they have doctors' appointments or personal issues to resolve. Telecommuting can also be an added incentive, especially for those working in larger cities with traffic issues.

Competitive Pay and Benefits

Companies are more likely to retain workers if they offer competitive pay and benefits. People have a general idea on how much they should be earning. They may have friends working in similar positions at different companies. Similarly, they may see compensation figures in advertised positions. Employees also desire reasonable health and life insurance coverage. They also want to save for retirement through 401k or other retirement savings plans. Moreover, companies should offer employees fair chances of being promoted to increase their incomes.

Pride of Ownership

People are likely to stay in positions longer when they own company stock. They become more conscientious in meeting deadlines or saving costs. However, some employees just want more input with decision-making. For example, several office workers may just want to decorate a hall for the company's Christmas party. A marketing manager may want upper management to value her suggestions for new product ideas. Employees tend to get more disgruntled when they have little input in company matters.

Improving Employee Relations

Company managers must learn to improve their relationships with subordinates. One way is asking employees about their goals and objectives. For example, a company manager may assign a project to a nonmanager if that person aspires to be a manager some day. The manager can observe how the employee handles the project, offering suggestions as needed. Managers may also need to adopt different management styles with their employees. For example, some workers prefer closer supervision than others. Hence, a manager may manage these employees more closely, assigning them tasks on a daily basis. Others prefer more latitude in completing tasks and assignments. Whatever the case, managers can directly influence their employees' morale and motivation.

References

• Business Know-How; Top-Ten Reasons Why People Quit Their Jobs; Gregory P. Smith
• "The Wall Street Journal": Employee Retention – How to Retain Employees.
• American Academy of Family Physicians; Five Ways to Retain Good Staff; Roger Shenkel, M.D. et al; November 2004
• "Entrepreneur"; Hiring Your First Employee; Erika Welz Prafder