Employee retention needs measures – and a change of perspective. Read how to ensure high staff retention. […]
According to the Global Workplace Study, 85 percent of employees in Germany were not very enthusiastic about their own job last year. Such a negative attitude entails high costs. For example, research by Gallup and The Engagement Institute in the United States estimates that a dissatisfied workforce costs companies between $ 350 and $550 billion each year. But despite this potential loss, companies are finding it difficult to involve employees more closely.
Basically, employee loyalty is a reflection of the corporate culture. If the company relies on the right resources, employees are much more enthusiastic about their tasks. They are more passionate at work and are particularly committed. This promotes exceptional performance, increases personal initiative, increases customer loyalty and makes a company resilient. Ultimately, a high level of employee engagement can lead to measurably higher productivity and more innovation.
However, the impact of successful employee retention is still assessed very differently in practice. According to a survey by the Harvard Business Review, 71 percent of managers consider the involvement of their employees to be “very important” for the success of their company. The most important factor for 72 percent of the respondents is the recognition of their own performance. Although companies spend more than $100 billion annually to improve employee retention, only 13 percent of the workforce is actually engaged so far.
For this to change, every company must understand that employee loyalty and corporate culture are closely interlinked. The basis for this is a change of perspective with a 360-degree approach that takes into account professional, intellectual and social inclusion.
1. Professional involvement
For better professional integration, employees can develop further through a continuous learning and development program (L&D). According to a Udemy study, 80 percent of employees believe that L&D opportunities contribute to greater engagement. Therefore, such initiatives are an important factor for their inclusion. Companies that rely on L&D not only benefit from a higher professional commitment, they also increase business growth. After all, investments in continuing education improve job performance and at the same time open up new growth opportunities for employees. You will learn how to create added value for your employer.
In addition, these programs are important indicators of appreciation and have an impact on loyalty and employee retention. According to the LinkedIn 2018 Workplace Learning Report, 94 percent of respondents say that professional development through learning is a reason to stay longer in their company.
In addition, professional involvement plays a key role in promoting internal leadership qualities. This is because it conveys a valuable corporate culture and at the same time protects internal knowledge that is invaluable for the future. Companies that offer a learning-oriented approach that is tailored to the individual’s needs and uses technological tools are also better equipped for troubled times. Especially with hybrid working models, which are currently becoming more and more widespread, advanced remote learning offers are necessary to improve results in the future.
2. Intellectual involvement
Intellectual involvement is another important area. It includes an organized framework in which the skills of employees and their constant further development are promoted. This is done in the form of employee initiatives such as “Innovation Drives” and “hackathons”.
Measures for intellectual integration offer a much-needed change from the daily business and promote team building in new and interesting ways. Teams learn to work together and solve real problems while developing their entrepreneurial potential. Internal hackathons are a great way to entice employees with bonuses that advance their careers.
3. Social inclusion
Social inclusion aims to give employees a break from the stress, monotony and routine of their everyday work. These include recreational activities that allow each member to relax. This demonstrably promotes team cohesion, mutual agreements and empathy. Such events include social activities such as office parties, team evenings, competitive games or the invitation to events. In the pandemic scenario, social inclusion has taken on a whole new meaning, because millions of people work from home. Commitment at the workplace – whether in the office or at home – is closely related to the development of an integrative culture characterized by social ties.
Employee recognition can positively influence the engagement of almost 90 percent of the workforce, according to a SHRM/Globoforce survey. Company-wide gameathons and watch parties not only boost morale and increase motivation, they are also a good opportunity for companies to express their appreciation for employees.
These three pillars form the 360-degree approach to employee involvement. It revolutionizes the way companies and employees work together to achieve goals. Especially in the current COVID-19 pandemic, the way we work and interact has changed radically. Organizations will continue to face major challenges in the future with regard to a hybrid working model. Therefore, you must use every opportunity to promote and retain the most valuable asset – your employees. In this way, companies ensure that the workforce is the best ambassador for their brand and values.
*Anoop Tiwari is Senior Corporate Vice President of Digital Process Operations at HCL Technologies.