The cost of unplanned employee turnover is staggering. Losing an employee can cost upwards of twice their annual salary when accounting for lost productivity, recruitment costs, and on-boarding new hires. As the labor market grows tighter in 2023, retention is more critical than ever.

Employee Retention Programs Matter More Than Ever

Research shows 79% of people are more likely to quit a job if they don’t feel appreciated. With new remote and hybrid work models, company culture and sense of belonging have an even bigger impact.

While compensation is important, it’s not enough on its own. Employees today want purpose, development, flexibility, and connection. Organizations that fail to meet these needs will continue bleeding talent.

Fortunately, there are proven employee retention programs and initiatives that leading companies deploy to retain their people. Read on to learn from the best practices.

Craft Employee Journeys That Cultivate Loyalty

Think of the employee lifecycle as a hero’s journey. When each stage is optimized with employee retention programs, employees develop deeper bonds and loyalty to the company.

• Onboarding: Set new hires up for success from day one with thorough yet engaging onboarding. Assign buddies, schedule social events, and frequently check-in during the first 6 months.
• Development: Invest in development through mentorship programs, tuition reimbursement, conferences, and training. This shows a commitment to growth.
• Recognition: Celebrate wins and milestones with public recognition. Spot bonus programs boost morale and make employees feel valued.
• Leadership: Build trust and connection between employees and managers. Encourage open communication up, down, and across the org chart.

When people feel supported as they learn and grow, retention comes naturally.

Foster Belonging Through Group Activities

Humans are social creatures. We thrive when we feel connected to those around us. That’s why community building and team bonding are so critical for employee retention programs.

• Virtual escape rooms, trivia nights, and games keep remote workers engaged.
• Volunteer programs give people a chance to make an impact together.
• Annual retreats in exciting destinations strengthen relationships.
• Fitness challenges, sports teams, and group fitness classes motivate people to stay active and bond over shared interests.

Smart companies recognize social connections as fundamental human needs. There are creative ways to fulfill these needs even in hybrid work environments. The key is facilitating shared experiences full of laughter, teamwork, and fun.

Offer Flexibility Through Strong Remote Work Policies

Work flexibility has become a driving factor in career decisions. Employees with access to remote work options are less likely to leave.

That’s why forward-thinking companies now offer:

• Generous remote work allowances. Some organizations even have “work from anywhere” policies.
• Asynchronous schedules to collaborate across time zones. No more restrictive 9-5 in the office requirements.
• Global talent networks that enable remote employees to connect and collaborate.
• Flexible PTO and holiday policies. Unlimited vacation time is becoming more common.

With the right infrastructure, flexibility unlocks productivity, boosts morale, and retains top talent.

Make Wellness Resources and Benefits Readily Accessible

Burned out employees get sick, disengaged, and overwhelmed. Companies invested in wellbeing retain happier and more productive people.

Consider benefits like:

• Meditation and mental health programs. Apps like Calm and Headspace provide valuable tools.
• Ergonomic equipment allowances. Prevent pain and discomfort.
• Fitness reimbursements. Help people stay active.
• Healthy office snacks and meals. Good fuel powers performance.
• Generous leave policies around mental health, bereavement, and sick days give people room breathe.

Remember, retention stems from care. Wellness resources demonstrate genuine care for employees as human beings.

Conduct Stay Interviews to Uncover Frustrations

Don’t wait for exit interviews to understand why people leave. By then, it’s too late.

Stay interviews provide insights into what motivates employees to stay, what frustrations they have, and what retention tactics are working. This allows organizations to course correct. Here are some example stay interview questions that you could consider using as a starting point:

• What makes you excited to come to work each day?
• When do you feel most fulfilled by your work?
• What obstacles get in the way of doing your best work?
• What initiatives would make the biggest difference in improving employee retention?

Annual or bi-annual stay interviews reveal trends while memories are fresh. The insights they provide are invaluable.

Offer Developmental Programs Like Job Shadowing

Investing in career development pays dividends in engagement and retention. Research shows that employees want growth opportunities, not career ruts. Development programs like job shadowing, stretch assignments, and internal transfers expand skills and visibility. This makes people more promotable.

Rotate employees through short-term assignments in different departments. Let them shadow roles they aspire towards. Provide training resources and mentors.

This shows the company is actively investing in the growth of their people. Talented employees are far less likely to leave when given developmental opportunities.

Drive Employee Retention Through Compelling Total Rewards

While culture drives engagement, fair compensation and benefits prevent attrition. Evaluate total rewards packages against market standards. Here are some examples of compelling total rewards:

• Competitive salaries benchmarked to industry standards
• Performance bonuses and sales commission programs
• Equity in the form of stock options or grants
• Tuition reimbursement programs
• 401k matching and retirement contributions
• Health insurance contributions
• Relocation assistance packages
• Pairing strong culture with right-sized compensation optimizes retention. Employees want fair pay, but meaningful work and connection too.

Takeaways

With unemployment low and demand for skilled talent high, retention is top of mind for leaders. Losing great employees hurts operational excellence and continuity.

However, there are proven retention strategies centered around culture, flexibility, wellbeing and growth opportunities.

Companies investing in thoughtful employee journeys deliver ROI through reduced turnover costs and built institutional knowledge. Retention stems from engagement.

Now is the time for organizations to take retention seriously, listening to employees and implementing initiatives that cultivate loyalty, belonging and growth. The companies that succeed will have a competitive edge.