An effective employee retention plan involves listening to employees and providing rewards that they actually want. Poor retention can indicate deeper problems in the company, which can be addressed through exit interviews with departing employees.
An employee retention plan is a plan for running a business that uses techniques designed to retain good employees. Employee retention is beneficial to the business because employee retention reduces the costs involved in hiring and training new employees to replace those lost. Factors that influence employee retention are many and include rewards, communication, and a sense of purpose at work. By working to discern what employees want without a job, an employer can come up with an effective employee retention plan to help develop a corporate workforce that is content over the long term.
Rewards are an important part of a successful employee retention plan, but they need to be rewards that employees want. Many employers make the mistake of guessing what rewards employees want from a job situation. Often, listening to employees and asking them what they want can reveal problems that can be easily fixed or wants that can be satisfied for little additional cost. For example, if a company hires employees and promises them high-quality, premium coffee at work and then switches to generic coffee at the grocery store, employees may get upset that their benefits are being cut and seek other employment, especially if few other incentives are offered. An employee retention plan would take into account employees’ desire for quality coffee to avoid losing employees whose retention depends on quality coffee, and the difference in the cost of the coffee will likely be less than the cost of hiring new employees .
Poor employee retention can be an indication of general problems in the company. No matter what steps an employer takes in an employee retention plan, rewards and incentives will only serve as a temporary solution to fundamental problems in the company. Deep-seated business problems such as low overall pay or a hostile work environment will always cause poor employee retention, and these problems can only be solved by directly addressing them and changing the conditions that contribute to the workplace problems. Employers who harbor or allow for the development of poor working conditions or an overly sexualized workplace will be able to retain employees willing to face unpleasant working conditions; employees with skills employable elsewhere will leave unfavorable conditions as soon as a suitable position opens up.
Exit interviews with employees leaving the company can offer a valuable source of insight into how company practices affect individual employees’ desire to stay with the company. When employees leave the company, they often feel more free to express their views on issues within the company than they did when they were working. While a well-trained employee may have already been lost during the exit interview, the interviewer may be able to gain valuable information from the exiting employee that can prevent a similar situation from causing the employee to be lost in the future.
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