6 Secrets to Retaining Your Best Employees

By Rick Bisio - FranChoice Franchise Consultant
Updated May 2024

Let’s face it – the American Dream has changed.   There are few corner offices and even fewer gold watches. Pensions are seemingly a thing of the past and retirement planning becomes increasingly more difficult by the day. In today’s reality, employers promise less, and in turn, employees change jobs and career paths more freely.

Employee engagement goes beyond job satisfaction– it involves the emotional connection an employee feels toward their work, leading to an increase in motivation, productivity, and a sense of ownership. Engaged employees are more likely to stay with an organization, contribute positively towards their roles, and exceed their job expectations. On the other hand, employee retention pertains to the strategies and practices organizations use to prevent talented employees from leaving their positions.

High employee turnover rates could lead to financial implications because of increased recruitment costs and loss of company knowledge. Therefore, focusing on retention strategies that foster a favorable work environment can help maintain workplace stability.

Secret 1: Ensure Employee Engagement through Open Communication and Regular Feedback

Communication is not a one-way street where orders are simply given top-down. Instead, it has become a collaborative process that involves interaction and exchange of ideas between team members and leadership. When a new employee feels heard and understood, they're more likely to develop a higher level of engagement with the company. Effective communication should be seen as a building block in your employee engagement strategy, a simple yet powerful tool to boost employee engagement and improve retention.

The Key to Effective Facilitation:

Regular feedback sessions can serve as a tool for open communication. An exchange of ideas helps build a strong relationship between employees and their supervisor, leading to increased job satisfaction. The feedback loop should, however, be mutual. Employee feedback to the management is equally crucial in creating an engaging work environment.
 

Secret 2: Prioritize Work-Life Balance and Flexibility

Employees are not purely defined by their job roles and acknowledging this fact can genuinely inspire a deeper level of employee engagement. What does work-life balance really mean? It's a state of equilibrium where an employee's professional obligations and personal life are well harmonized, which leads to increased job satisfaction and lower voluntary turnover. 

The Key to Effective Facilitation:

Achieving work-life balance is not a one-size-fits-all concept. This balance varies among employees due to different personal needs and life situations. What may seem balanced for one person could be unbalanced for another. The key to supporting employees in achieving a healthy work-life balance lies in flexibility. Flexible work arrangements, like remote work, flexitime, part-time work, and job sharing have been shown to boost employee satisfaction.

Secret 3: Offer Professional Development Opportunities 

If the adage “an organization is only as good as its people” holds true, then investing in employee professional development is synonymous with investing in the company's potential for growth and success. Professional development goes beyond training managers with the necessary skills for their leadership roles. In a 2018 study conducted by LinkedIn, 94% of employees said they would stay at a company longer if it invested in their career development. Professional development initiatives signal to employees that the company is invested in their future, which can significantly influence their decision to remain with the company. 

The Key to Effective Facilitation:

Support employees in their goals of achieving further education or certifications by offering internal workshops or training on specific skills, or providing facilitated leadership development programs. Not only can it serve as a competitive advantage, it ensures your employees feel valued and recognized in their roles and encourages an engaged workforce dedicated to delivering exceptional work.

Secret 4: Recognition Program and Rewards 

Recognition and rewards are great for promoting employee engagement, enhancing job satisfaction, and ultimately, influencing retention rates. Acknowledging and appreciating an employee's efforts can resonate deeply and contribute to creating a work environment where everyone feels valued and seen. A study found that companies with a recognition culture have 31% lower voluntary turnover than those without it. A recognition program refers to official and structured attempts by the company to acknowledge and appreciate their employees' contributions to the organization. Regardless of how it is done, the goal remains the same: to let employees know that their hard work does not go unseen or unappreciated. 

The Key to Effective Facilitation:

Rewards can be either monetary or non-monetary incentives to appreciate outstanding performances and motivate other employees toward reaching similar heights. From salary increases and performance bonuses to flexible workdays and paid days off, rewards should be intentional and carefully planned to create a lasting impact.  Recognition and rewards enhance job satisfaction, which can positively affect employee engagement levels. 

Secret 5: Foster a Positive Company Culture

A positive workplace culture is the bedrock of employee engagement and retention. When employees feel they are part of a supportive, inclusive, and respectful environment, they are more likely to be engaged and committed to their work. Building a positive workplace culture involves several key elements: promoting diversity and inclusion, encouraging collaboration, ensuring open communication, and recognizing the importance of work-life balance.

The Key to Effective Facilitation:

Implement team-building activities, celebrate cultural diversity, and create platforms for employees to voice their opinions and concerns. Regular team outings, diversity training sessions, and employee resource groups are effective ways to promote inclusivity and camaraderie among team members. Offering wellness programs, mental health days, and resources for stress management can also enhance employee satisfaction. 

Secret 6: Provide Competitive Compensation and Benefits

While intrinsic motivators like job satisfaction and workplace culture are vital, extrinsic motivators such as competitive compensation and benefits can garner higher satisfaction among companies. Offering competitive salaries, comprehensive benefits packages, and performance-based bonuses are essential in retaining top talent. Conducting salary surveys and benchmarking against industry standards ensures that your company remains an attractive employer. Incentives for outstanding performance and recognizing long-term commitment with loyalty bonuses can further enhance employee retention.

The Key to Effective Facilitation:

A well-structured benefits package goes beyond just salary. It should include health insurance, retirement plans, paid time off, and other perks like gym memberships, childcare support, and flexible working hours. Providing these benefits shows employees that the company cares about their overall well-being and financial security. Investing in competitive compensation and benefits not only helps retain employees but also boosts morale and productivity. When employees feel valued and fairly compensated, they are more likely to be motivated and dedicated to their roles.

Using the Secrets to Employee Engagement and Retention

Engaged employees are the backbone of any successful organization. They are motivated, productive, and loyal, contributing positively to the company’s growth and success. Retaining these valuable assets requires a holistic approach that addresses their emotional, professional, and financial needs.

By implementing strategies that foster open communication, promote work-life balance, offer professional development opportunities, recognize and reward achievements, create a positive workplace culture, and provide competitive compensation and benefits, companies can create an environment where employees feel valued, engaged, and committed.

By integrating these strategies into your business operations, you can create a thriving work environment that attracts and retains top talent. With these secrets, your company can unlock its full potential and achieve long-term success.