5 Best Employee Retention Strategies for 2024

Companies need talented and dedicated employees. A company that keeps losing employees and has to go through the hiring process multiple times a year will likely fail to progress.

Implementation of Employee Retention Strategies can help reduce the number of hiring cycles in a year. 

Every new hiring cycle strains the company’s resources, and the company must train new employees before they can contribute to their new company, only for them to leave the company after a short while.

This is where Employee Retention comes in.

What is Employee Retention?

Employee Retention refers to a company’s ability to retain talented and experienced employees.

Employee Retention, calculated as a statistical percentage, indicates how well the employees have adjusted to the company and are treated there over a certain period.

A company employs specific employee retention strategies to reduce the turnover rate for its employees.

Losing employees can not only cost the company financially but also reduce the confidence and morale of the remaining employees, mainly if the person leaving held a managerial position.

What are the Benefits of Employee Retention?

These employee retention strategies can prove to be more beneficial if implemented correctly.

Reduced Training Time  

Every freshly hired employee requires some training before they are deemed capable enough to handle any job allotted to them. These training periods vary according to the job type and the company, but they are usually one month to three months long.

During this period, they do not contribute to the company. An experienced and skilled employee does not need to be instructed on how to get the job done; they can perform efficiently and complete the given tasks quickly.

Increased Productivity

Employees start to understand the workings and values of the company the longer they work there.

An employee who has worked for a company for a couple of years will be well-versed in its operations and can make timely decisions regarding any problems.

A new employee will need constant instructions and guidance to perform the simplest tasks. If they face a complicated problem, they will report it to their supervisor rather than try to tackle it themselves.

Reduced Financial Strain

Hiring new employees is an expensive process. It costs quite a bit to advertise the need for employees, hold tests and interviews, and then train the new employees.

It also results in extra load on the other employees, who should have to perform their regular duties in addition to hiring and training the new employees.

If a company's retention rate is high, it can focus its finances on investing its time and money in other, more beneficial pursuits.

5 Best Employee Retention Strategies for 2024

Employee Retention Strategy 1: Competitive Salary

While working offers mental satisfaction and helps build social and economic connections, the main reason why people work is to make money. The better the pay scale and benefits the company provides, the more likely the employee is to stay.

Offering a competitive base salary attracts many people, allows them to feel a sense of achievement, and helps them feel like their efforts and work are appreciated.

Some benefits that a company can provide to employees are Insurance Plans, Retirement Plans, and Health Benefits.

Employee Retention Strategy 2:  Value the Employees

Every person wants to feel that what they are doing is worthwhile and that their efforts are being appreciated and rewarded.

According to a survey, 56% of leaders admitted that engaged workforces attain positive ROI, while only 40% of managers can access engagement surveys to know what motivates team members.

The company should focus on appreciating their employees and making them feel valued and that their services are indeed crucial to the company.

Some ways to value your employees are to ask their opinions on matters that directly impact them, thank them for their hard work, and congratulate them on a job well done.

These may seem trivial, but they leave a significant positive effect on the employees and inspire them to do better in future.

Employee Retention Strategy 3:  Work-Life Balance

Work is vital, but it is also important to remember that your employees have a life outside the company and appreciate their personal space and privacy.

A company that infringes on its employees' personal lives and time is more likely to lose them. The company should ensure that the employees are given their due space and time off so that they aren’t burnt out.

Paid vacations or trips help employees' mental and physical health and it also encourages them to do better.

The company should also refrain from contacting its employees after work hours and pay them for any work they may have to take home, but only if they are willing.

Employee Retention Strategy 4:  Encourage Creativity

Almost every company advertises that it encourages and promotes its employees' creativity. However, companies don’t have any employee retention strategies or plans that allow their employees to explore their creative side.

Companies that harness their employees’ creative side are very successful and have a very high retention rate.

Companies can give awards, certificates or rewards like gifts or food vouchers, when some employees achieve their goals by doing out of the box activities.

Employee Retention Strategy 5:  Respect

Every person needs a workplace whose environment is comfortable and in which they feel respected. No one wants to stay in a place where they are disrespected or undervalued.

The Human Resources Departments in the companies should listen to and investigate any complaints of workplace discrimination and abuse to ensure that such issues don’t fester in the company.

5 Global Companies with Best Employee Retention Programs

1. Google

Google provides a variety of perks and benefits, including free meals, on-site wellness and fitness centers, and generous parental leave policies. They also encourage a culture of innovation with initiatives like "20% time," where employees can spend 20% of their work hours on projects they're passionate about.

2. Salesforce

Salesforce focuses on solid company culture and community involvement by its 1-1-1 philanthropy model, where they dedicate 1% of equity, 1% of employee time, and 1% of product to charitable causes.

3. Adobe

Adobe employs an "Employee Check-In" program, which replaces traditional annual performance reviews with regular, ongoing feedback and career development conversations. This approach promotes continuous growth and engagement.

4. Netflix

Netflix offers a high degree of autonomy, flexibility, and a strong emphasis on accountability. Its "Freedom and Responsibility" culture allows employees to make decisions independently, fostering a sense of ownership and trust.

5. Zappos

Zappos is known for its unique company culture and emphasis on employee happiness. They offer extensive onboarding programs, including a "Culture Camp," and provide employees with opportunities for personal and professional growth through various training and development programs.

Final Thoughts: 5 Best Employee Retention Strategies for 2024

These are only a few strategies for employee retention a company can employ to ensure its employees stay with it. By implementing employee retention strategies in 2024, you can become a good employer and ultimately help fulfill your business goals.

We also listed companies with the best employee retention programs, which may inspire your company to formulate employee retention policies.

There are many other successful methodologies for maintaining a high employee retention rate that every company should employ if they hope to succeed.

Best of luck for Retaining Employees!