Patterns of employee retention have changed dramatically in recent years. As the Great Resignation saw workers switch jobs, it also served as a wake-up call to employers, refocusing attention on the value of employee retention.
And employers listened. Studies show that employee retention is on the rise again as companies seek to build longstanding relationships with their staff. In this post, we cover a few possible reasons retention is increasing and how businesses can improve their own retention efforts.
Why Employee Retention is Increasing
Understanding an individual employee’s reasons for leaving a job or staying may be mystifying. However, data analysis reveals clear patterns in the reasons workers stay on the job. Major reasons employee retention is increasing include:
Job satisfaction. Data indicates that overall, employee job satisfaction is at its highest since the mid-1980s. Workers who like their jobs are more likely to stay in those roles – and to stay with the company even when they’re ready for new challenges.
Increased retention efforts. The Great Resignation spurred companies to make retention a priority. By using concrete information on what matters to their teams, these employers can build a culture that keeps their workers satisfied and present.
When asked what inspires them to stay with a job, many workers cite factors like work-life balance, opportunities for advancement, and pay that accurately reflects the costs of living near the workplace.
How to Improve Your Business’s Retention Efforts
Understanding what employees value is a key first step to improving a company’s retention efforts. Top priorities among workers include:
Work-life balance. Work-life balance remains a major concern for workers, who must manage work in an always-connected digital world alongside the challenges of raising families and running households. Workplaces that actively promote workers’ ability to “do it all” are more likely to retain their staff and prevent burnout.
Job stability and security. Today, nearly all workers 35 and older experienced the turbulence of the Great Recession firsthand. Younger workers may have seen family members lose jobs. More recently, the entire workforce felt the impact of the pandemic. For all workers, these events underscored the importance of a stable, secure role. When workers find one, they prefer to stick with it.
Salary and benefits. A wage that matches the cost of living demands and robust benefits contribute to work-life balance. They eliminate financial and other concerns for workers, allowing them to focus on their work – and making them hesitant to risk their security by gambling with a new employer.