2023 Employee Retention: 7 Key Strategies 

A SHRM survey found that 47% of managers consider improving employee retention rates their biggest challenge. Employee turnover isn’t just inconvenient; it’s costly.  Some studies suggest that replacing team members may cost 6-9 months’ worth of their salary.  To retain employees, organizations need to strategically plan, launch, and maintain a long-term, multi-pronged effort to improve the work environment and company culture, boost job satisfaction, offer paths for professional development, implement recognition programs, and more.  MP’s HR experts share seven essential tips for effective employee retention strategies. 

7 Key Tips for Employee Retention Strategies

1. Optimize the onboarding process.  

Improving employee engagement starts from the very beginning of the employee lifecycle.  Organizations often find their employees leaving within the first 3-6 months of a job.  This phenomenon is because employees feel the least connected to their coworkers, team, and work.  Employers must prioritize developing a process that helps new hires feel comfortable learning their new jobs, understanding the company’s products or services and larger business goals, and understanding their schedules, compensation, and benefits.  Most critically, employers should create a culture that comprehensively supports new hires and helps them feel welcome.  This is especially true when an organization offers remote work, whether full-time or hybrid.  It’s often more challenging for employees to build a connection with managers and team members when they’re not all in the office together frequently. Some common tactics for improving the onboarding process include setting up one-on-ones with teammates and managers, using appealing, user-friendly HR software (like MP’s) to help employees complete new hire paperwork and elect benefits, and using talent management software to help employees connect and collaborate easily.   

2. Make the performance review process transparent and year-round.   

Employers and employees will benefit profoundly when performance reviews are optimized all year.  Employee satisfaction will skyrocket when they can achieve more and know they’re good at their jobs.  Organizations should use performance review software (like MP’s) to make the process easier, transparent, and ongoing.  Employees can constantly improve and feel empowered when they get real-time feedback and watch themselves achieve new goals or contribute to larger company goals.  Understanding how their work connects to organization-wide business goals is especially motivating.  If employers are able, they should consider offering raises and incentives through the review process. 

3. Provide recognition frequently.   

This tactic is vital to strong employee retention strategies.  Employers should recognize employees at all levels on a regular basis.  This can be done verbally in meetings, over email and chats, and in award programs with or without prizes.  Employee engagement will be dramatically higher when team members know their work and contributions are appreciated. 

4. Support work-life balance.    

Employee retention strategies should always include measures to help employees fight burnout.  Employers may want to offer wellness and mental health days.  These PTO days should be easy for employees to take when needed, no questions asked.  Organizations should also train teams to cover for each other or work ahead, so it’s easy for people to take sick time when necessary.  If employees are able to work remotely when they’re feeling ill, this helps get work done, but make employees feel cared for.  It also helps employers avoid losing their whole team to a virus!  Organizations should use time and attendance software, like MP’s, to make it easy for employees to communicate and document their PTO, sick time, vacation time, etc.  When possible, managers should set and respect firm boundaries for the workday.  Calling employees after hours with questions, requests, etc., will contribute to faster burnout.  Lastly, managers should keep a pulse on employees.  When they meet with them, they should check in and encourage employees to take time off when they need it. 

5. Evaluate compensation and benefits packages.   

One of the most prominent components of employee retention strategies is ensuring competitive compensation and benefits.  Employers should work with HR experts, like the ones at MP, to evaluate their compensation.  If employees are working remotely, organizations may need to offer different ranges that consider the cost of living.  Benefits packages should also be assessed and maximized at least yearly.  Employers can help their staff understand their benefits and use them to their full advantage by educating and reminding them year-round.  Benefits administration software, like MP’s, helps employees easily access their benefits information and make changes when necessary.  (This system will also profoundly reduce administrative burden for the organization.) 

6. Provide opportunity for professional development.   

Employees are more likely to stay at an organization for a long time if they can grow.  When possible, employers should offer a path for growth.  Managers can discuss this path for growth in performance reviews and meetings with their team members.  Organizations may also consider paying for additional training for their employees.  This could include skills that directly impact an employee’s job duties, or help them try new projects.  Employers may also want to bring in experts to train employees during work hours, making it more accessible to the staff with many out-of-work obligations.  

7. Use employee surveys. 

Employee engagement software and services like MP’s help employers to take the pulse on how employees feel about their jobs, the company, work, etc.  Employers should use employee surveys at least yearly to understand where they could improve to boost employee retention.  However, it’s important to note that employers should not send out surveys unless they’re ready to act on feedback.  Soliciting feedback and ignoring all of it will negatively impact employee retention.