Great managers understand the importance of keeping their best employees because it ensures customers’ satisfaction, increased product sales, satisfied and happy coworkers, and a higher life span of the company.
Keeping quality employees has a more significant effect on long-term health, success, and sustainability of your business. There are huge demand and competition in the market for labor. Businesses everywhere are looking to expand and are open to a new position.
It seems like a nightmare to managers or employers when one of your best employees resigns from your company and teams up with your competition.
You already have bugging challenges, and it adds up to the load, doubts in other employees. Yes, they can work out if that door tomorrow because their coworker did. Finding a competent replacement and the cost of replacing such a talented team member is not left out of the picture. That’s why employee retention and employee job satisfaction should be high on every organization’s list of priorities and developing effective retention strategies to decrease turnover should be one of management most important job. Therefore, you need to develop better strategies for keeping your best staff. And pursuing your corporate goal with customer satisfaction and protecting your company.
How long your company can keep its existing employees also determines the value your employees can add to your company health amidst competition.
But the big question is, “what is the secret or Key?”
Research shows that company corporate culture has a significant effect on the decision of employees in determining whether to stay or leave the company.
Your corporate culture is your company daily practices, traditions, beliefs and programs.
Every working relationship operates on a balance of trust, recognition and fair hearing. Employees love an environment where they can grow, share their views and where trust is significant. When people work together, they can achieve more than they would have done individually. Salary is a big factor in retention, but even well-compensated employees you don‘t recognize for their hard work are much less likely to stick around than others.
Now the secret of keeping employees is simple: establish a corporate culture that is flexible and employee friendly. Besides, you need to be goal oriented.
A positive culture is a vital aspect of running a business. Over 50% of executives say corporate culture influences productivity, creativity, profitability, firm value, and growth rate.
Since employees are the most crucial vehicle or drivers of corporate success, your business is likely to succeed when its culture is focused on the way your employees view the company.
It is also important for you to remember that there isn’t a “one-size-fits-all” type of culture that results in every single employee being happy and productive, as there is a diverse satisfaction for different employees- what satisfies one employee may not satisfy another employee. But paying prominent attention to what is achievable regarding improving your culture will pay off majorly for your employees and business.
Since the best way to realize value is action, let’s discuss how big companies keep their employees. We’ll consider Location Labs, Google, Facebook, and Oracle and what they have in common that distinguish them from their rivals.
Healthy Employees Retention—Statistics
Healthy employee’s retention means a lot of a company’s employees are happy with their corporate culture and hence are not leaving.
Research shows that when people join Location Labs they stay for a long time. The company boasts a 95% employee retention rate and has never laid off an employee.
We traced this to the company management ethos—Hiring promising people—who are in for the right reasons, not the biggest compensation package.
The company also boasts of a high employee referrals rate, showing that about 60% of their employees have referred another person working with them and over 40% of their new hires are referrals, including some referred by people who longer work with them.
With roughly 3 million resumes received per year, Google is one of the most sought employees today. And one of the best examples of what a strong company culture can do. Overall, Google is rated as the best place to work and over again in various rankings. And it’s not the perks: free food, massages, sports courts, cool office space, and good pay.
Google has been often commended for its leadership and the strong mentorship programs inside the company. They also communicate their values and what it stands for and has made hiring for the cultural fit, people who are both skilled and open-minded.
On December 2018, Facebook used 35587 staff. But 12 years ago, Facebook had only 150 employees. This rise was because of the credible employee friendly environment. Facebook was awarded as the longest average retention firm in the tech industry. The employees spend around 2.02 years at the firm. Facebook has the highest retention rate out of the top ten tech companies.
One explanation for the ranking is Facebook’s culture and the way the company has doggedly preserved it over the company 15 years lifespan.
Oracle was enlisted as the third best tech company that has a healthy employee retention rate, with an average of 1.89 years. All thanks to their corporate team building culture. Oracle has a formidable culture were its employee’s voice is a priority. They permit everyone to contribute to company growth.
Having shown you some companies with good and healthy team building culture and better retention rates, it is also imperative to let you know that it is not so easy to keep employees.
Now let’s look at some difficulties attached to employee retention.
Difficulties in Retaining Employees
Because of huge competition in the market for labor/employees, a major challenge for an organization is to retain its valuable and talented employees. You can control the problem of employees quitting the organization within no time to a great extent but you can’t stop it. You also need to understand that employees are capitalists.
Here are some challenges in employee retention.
Every employee has high salary expectations, and this is one of the major reasons employees quit the organization. Retention becomes a problem when an employee quotes for an exceptionally high salary, which is beyond the budget of the organization.
Job Opportunities are High
There is a cut-throat competition to attract the best talents into the market. Companies go a long way to lure talented resources from their competitors. Availability of such lucrative offers makes it difficult to keep good resources for long.
Hiring the Wrong Employee
Recruitment plays an important role in any organization. A right candidate hiring will give a good future and a wrong candidate hiring will give a bad future. Candidates speak all kinds of lies at the time of interviews for getting a job. This creates a problem and thus the look for change.
Unrealistic Expectation of Employees
It is not possible for an organization to meet the expectations of all its employees. An employee must be mature enough to understand that one can get all the comforts at the workplace. Sometimes, when you don‘t meet the unrealistic expectations of the employees, they look for another job.
The knowledge of these employee retention difficulties will help you take precautionary steps in developing better retention strategies.
Innovation is the lifeblood of Any growing company and a crucial element to keeping your team happy and engaged- but it can’t happen when people are hesitant to share and vent.
Employees turnover is costly, and it’s a problem in organizations across the globe. Each time an employee leaves, they take a significant portion of their knowledge and expertise with them. You need to stem the flow at the source by solving your biggest employee’s retention problems at their roots.
You may already work to improve retention, but it’s not always obvious which initiatives will have the most impact. The effectiveness of your solutions depends on their alignment with the problems.
Assessing your current situation is one of the most important steps for improving retention.
What do These Companies Have in Common?
Team Building Culture
Several big companies have built a strong team culture, where employees align themselves as single phalanx- not as individuals. An enabling environment where everyone is relevant and needed for the next move.
For example, the Location Labs created an award to celebrate team culture when they see it and called it ‘The Spartan Shield’ award. The culture that makes employees dependent on the shield of the next person next to him, hence keeping the person safe. As for Google, they established and inculcated team building culture as one of its corporate rules, one among the “Eight Good Behavior”.
Facebook strategic approach in hiring the best, created a league of professionals with like minds.
Oracle believes in happy motivated employees working towards shared values. This environment created to make their employees happy, motivated, and it stirs up synergy
There is no rule binding you to follow the same steps as these companies did; whatever step you can put in place to establish a strong team culture, to keep your employees, please do.
All these giant companies have employees who stick to them because of the caliber of employees they hire and their hiring policies.
Location Labs have long created the atmosphere of hiring promising people who are vision and goal oriented regardless of experiences. That’s, they identify’ diamonds in the rough ‘Google focus is hiring Creation innovative minds with the curiosity for growth regardless of your achievements and past legal, marital, tribe and status, i.e. irrespective of records.
Facebook focuses on the culture of what they believe and recruit within that phenomenon. Anyone with their belief mindset becomes their worker- someone who can work for them and whom they can also work for.
One thing you must realize and put in place is the caliber of the network in your company will determine your net worth. Hire the wrong persons and incurs more retention costs. Choose a style and policy you know will help foster the retention of your employees in the long run.
Incite Creativity and Innovation
Delegation is actually a key opportunity to foster deeper employee engagement. Many big companies have concluded that their employees love task delegation because it helps them to express their long burning ingenuity.
Location Labs rest on the ideology where all their employees may contribute to solutions to corporate problems. Where their ideas are accepted, recognized and put to action. Google’s code is exploiting the best out of employees in a changing world. They believe in their employees to be creative and problem solving oriented.
Your task is to build an environment where your employees can air and are heard, where they can be trusted and believed to handle a task.
Happy Employees and Happy Customer
These big companies’ managers believe that keeping their best employees ensures customers’ satisfaction, increased product sales, satisfied happy coworkers.
Google’s returns are mostly directed to customers retention is from how happy they focus their employees on meeting customers’ dire needs.
You can start from somewhere. Chose a team building activity for your company.