Employee turnover can be expensive. In addition to the costs related to recruiting and training a replacement, you may face losses related to operational disruptions. And, if other employees have larger, more stressful workloads as a result, your company could see a chain reaction with more employees quitting. Clearly, retaining high-performing employees is the best approach, and innovative employee retention strategies like the ones detailed in this article can help you keep your best workers.
Unlimited Time Off
If you’re short staffed, the idea of giving your employees unlimited time off may sound absurd. However, it could help you with your staffing goals and employee retention strategy in the long run. For one thing, unlimited time off doesn’t mean that employees can take off whenever they want – many employers require them to submit requests for time off. But, with unlimited time off, there’s no need to keep track of vacation days or dispute how many hours are available. This type of time off structure may be appealing to employees who need to juggle their work commitments with their personal commitments.
Furthermore, employees need time off. If they show up day after day, week after week, without taking a break, they may clock more hours – but they may achieve less. According to the Society for Human Resource Management (SHRM), employees are often more engaged and productive after they return from time off. If an organization has a corporate culture that encourages employees to take time off, they may reap the rewards of improved employee satisfaction and worker retention.
Job Growth Opportunities
If your employees see their positions as dead-end jobs, they’re unlikely to stay at the company for long. Employers can retain employees by helping them progress in their careers. As a bonus, offering professional development opportunities can give your company a pool of well-trained employees who already know your company culture and operations.
Ways to provide job growth opportunities include:
- Mentorship: Pair senior employees with more junior employees in mentorship programs. In addition to helping new employees learn the ropes, the University of California, Davis says mentorship programs can also be beneficial for mentors by expanding their network, supporting the development of key skills and providing the sense of satisfaction that comes from helping others.
- Training: Provide additional training in house. For example, help employees learn how to use emerging technologies like generative AI, or provide funding for employees to pursue third-party training, certificates or licenses that will help them advance in their careers.
- Tuition Assistance: Employees who are serious about taking their careers to the next level may want to go back to school to further their education. Employers can support these individuals by offering tuition assistance or tuition reimbursement as part of an overall employee benefits package.
- Internal Promotions: If employees know that you’ll be considering them for higher-level positions when they become available, they’ll be more motivated to stay with the company and to do their best work.
Customized Employee Benefits
In today’s workforce, employees value flexibility and personalized benefits more than ever. If your organization has a strong foundation with a health insurance plan and other core employee benefits, it may be time to consider adding to your benefits offerings based on the needs and wants of your workers.
After reviewing your current offerings and getting feedback from employees, your employee benefits broker can help create an employee benefits package that’s designed to improve employee job satisfaction and reduce employee turnover. By giving employees a say in their benefits, your business can demonstrate that their individual needs and preferences matter, helping to foster loyalty and enhance job satisfaction.
Student Loan Matching
It’s not uncommon for employees to have student loan debt. However, this debt could mean they’re struggling financially, which puts things like buying a home or starting a family out of reach. In some cases, employees may need to take on a second job or move in with family members to pay off their loans.
Employers can help by providing student loan repayment benefits. As of December 31, 2024, new IRS rules allow employers to use 401(k), 403(b), governmental 457(b) and SIMPLE IRA plans to provide matching student loan contributions.
Fertility Benefits
For couples who are having trouble starting a family, IVF treatments may be a promising but expensive option. Some employers offer fertility benefits that cover IVF treatments or other fertility and family planning benefits. Although these benefits are often pricey, they could help to foster employee loyalty.
Paid Parental Leave
Although the Family and Medical Leave Act (FMLA) requires most employers to provide eligible employees with job-protected time off for certain family and medical reasons (including the birth or adoption of a child), by law, this time off does not need to be paid. As a result, many new parents may be unable to afford to take the time off they need.
Some states have passed laws to require paid family and medical leave. Employers that are not subject to these requirements should consider offering it voluntarily, as it can be a significant perk for new and current employees.
The Right to Disconnect
In some organizations, it’s common for managers to email, text or call employees outside of work hours expecting a prompt response, even for relatively minor issues or questions. This habit makes it hard for workers to recharge, which may contribute to burnout. The rise of remote work may be making the situation worse, since it blurs the line between work and home.
The World Economic Forum says several countries have proposed legislation that would give employees the right to disconnect. In Belgium, a 2022 law says civil servants have the right to switch off work emails, texts and phone calls outside work hours without fear of retaliation.
While the United States does not currently have similar statutes, employers can stand out by creating policies that support a worker’s right to disconnect and prioritize a healthy work-life balance.
Train Your Managers
There is a common phrase, “workers don’t leave jobs – they leave managers.” If your organization is facing a mass exodus of employees, the problem may be related to managers creating a toxic work environment.
Because of this, it’s important to train your managers to make sure they avoid the following actions:
- Micromanaging. Nobody likes to have someone looking over their shoulder all the time.
- Overworking employees. Excessive workloads and unreasonable expectations may lead to burnout and turnover.
- Bullying workers. Managers who yell at or insult workers help cultivate a toxic work environment.
- Stealing credit. Workers want recognition for their contributions. If managers are stealing credit, employees may feel resentful.
- Infringing on workers’ rights. Managers may tell employees they can’t discuss their pay or that they have to work off the clock, even though employees have the legal right to discuss pay and to receive compensation for their time. Often, missteps like this occur because managers are unaware of the relevant laws. If this is the case, additional compliance training needs to be provided to managers.
Does your business need HR support?
If your organization is facing challenges with employee retention, your core HR functions could also be at risk. Higginbotham’s HR Outsourcing services can help ease this burden by providing scalable, continuous support tailored to your needs. With Higginbotham on your side, you can eliminate the need for an internal HR or payroll team while still receiving personalized support from a dedicated team of specialists.