Employee Engagement Strategies That Help With Retention

Hiring new employees takes time and money. It could be weeks before you find the right person to fill a position, during which your existing staff may have to take on extra work. When you do recruit someone, there's also an adjustment period to onboard your new employee to their team.

That's why understanding key retention strategies is important—not to mention more cost effective than hiring new staff.

The importance of employee engagement

US businesses lose $1 trillion per year due to turnover in addition to adapting to challenges in the tight labor market of our ever-changing economy. As a business owner, you may find investing in employee engagement strategies can help keep your employees happy in their roles and even contribute to implementing policies that positively impact retention.

Here are some employee retention strategies that may help you keep your high-performing employees happy.

Pay competitive salaries

One of the top reasons an employee may leave your company is for better pay. Sometimes they may ask for a raise first, but often they accept a new opportunity without giving you a chance to make a counteroffer. By ensuring your salaries are competitive, you may avoid tempting employees to leave for better pay and benefits. Online research can help provide insight into what competitors in your area are paying, as well as the true cost of an employee.

Offer solid benefits

Employees want competitive benefits, such as healthcare, retirement savings and paid time off. You'll want to ensure your packages are similar to others in your industry.

Younger workers may also be interested in benefits like student loan repayment, onsite childcare and access to wellness or financial planning. Consider taking a survey to see what interests your team the most, then look into how you can provide meaningful perks that keep people engaged.

Allow flexible hours

According to the Achievers Workforce Institute's 2023 Engagement and Retention report, flexibility is a force for retention and attraction of employees. The 9-to-5 workday may not work for some of your employees, especially parents or caretakers responsible for raising children and helping elderly people in their home. Offering flexible hours may help remove some stress from their day and allow them to be more productive because they're able to focus.

If possible, let employees set their hours and communicate their availability to the team as needed. This demonstrates that you understand they have a life outside of work. While flexibility may not be possible in some roles, those with flexible hours will appreciate having the autonomy to create a schedule that works best for them.

Let employees work remotely

Many companies shifted to remote working arrangements during the pandemic, and the benefits of this model appeal to many employees. You can improve employee satisfaction by offering hybrid or work-from-home flexibility, either on a full- or part-time basis. Investing in collaboration tools and other technologies can make these perks possible and help you with digital employee engagement strategies.

Foster professional development

Employees want a chance to improve their skills. By investing in educational resources that promote employee growth and skills, you'll help them achieve their personal goals while making your team more knowledgeable and ready for advancement.

Sponsor classes or workshops that help your team stay up to date on the latest innovations in your industry. Be clear about career advancement options within your company, and promote from within whenever you can.

Acknowledge good work

People like to be appreciated. Make a point to thank your employees when they go the extra mile, achieve outstanding results or improve your employee culture. Even better, do it in front of the team to give them the credit they deserve. Some companies have formal systems with incentives.

Small perks such as free catered lunches on Fridays, tickets to a local sporting event or an employee-of-the-month parking spot can go a long way in making employees feel appreciated.

The bottom line

When you invest in your staff with employee engagement strategies, you also invest in your business. Engaged employees are more likely to stay and may help onboard new hires in the future. That's a return that is truly valuable for your business and its people.