Top Retention Strategies For 2023

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The key to any business’s success is employee retention. When investing in permanent new talents, it’s in an organisation’s best interest that they stay for the long haul and add value to your business. Large employee turnover rates have become a primary concern for businesses worldwide.

Let’s discuss useful employee retention strategies your business can implement to boost employee retention. But first, we need to look closely at why an employee retention strategy is essential for your business.

Why is an employee retention strategy important?

According to the Australian Bureau of Statistics (ABS), 975,000 people changed jobs in Australia in the year 2021 alone, with 60% of people intending to change jobs before the end of 2023. Even before the COVID-19 pandemic, employee retention rates were on the decline.

In fact, a Harvard Business Review found that in 2022, 41% of employees in the global workforce are considering leaving their role, with a whopping 36% of those not even having a new job lined up in place.

With these staggering figures, it’s become clear that businesses are losing money instead of successfully retaining their employees and having them climb the ranks internally. Not to mention, the remaining employees can lose a sense of morale, lose faith in the company culture and take a toll on their productivity.

Top employee retention strategies for your business

Get ahead of the curb with these essential tips to improve your employee retention strategy:

  • Consider the cost of low employee retention

When replacing employees, you’re not just paying the same salary cost. It goes beyond finances. A new employee includes the cost of hiring, onboarding and training, the time required to produce quality work and perform productively, increased susceptibility to business errors and the general culture impacts. It’s in your best interest to retain your employees for as long as possible and have them climb the ranks — since losing a few star employees will weigh on your company’s turnover.

  • Look into the factors that drive staff turnover

You know what they say — when life gives you lemons, make lemonade. When faced with an increased number of employees leaving your business, why not investigate why your existing employees are happy and why others have chosen to leave?

SEEK reports that the four main reasons why 23% of employees are looking for a new job in 2023 are an increased salary, career progression, burnout or lack of work/life balance and poor culture or leadership in their workplace.

With rising interest rates, does your salary on offer have your employees’ best interests at heart? When pay increases are not possible, additional paid leave is a beneficial alternative to make your employees feel seen. If you suspect an employee may be experiencing burnout, raise an open conversation to check in and discuss strategies to better help them manage competing priorities. And most importantly, dig deeper to unpack what kind of leadership aligns best with your employees’ needs.

  • Enforce a mental health program

The next pandemic the Australian community is facing post-COVID-19 is a mental health pandemic. Australian research conducted by McKinsey reports 43% of people are often faced with work-related stress, with 83% believing workplace well-being should be the employer’s responsibility. Implementing work-based wellness programs and listening to employees’ needs will help foster better employer/employee relationships.

  • Implement a flexible work model

Post COVID-19, remote work has demonstrated people’s ability to perform from home as they would in the office. A hybrid work model allows employees to have social interaction whilst still allowing some flexibility for them to work from home and manage priorities outside of work. With three in five Australians looking for flexible work, you should weigh up just how flexible your business is and how it compares with competitors.

  • Take a closer look at your leadership team

With SEEK’s report stating that poor leadership was one of the driving factors why Australian employees quit their job in 2021, it’s imperative that your employees feel their manager or team leader is an excellent fit for the company culture.

According to the Australian College of Professionals, the core skills required for an effective team leader are communication, organisation, confidence, integrity, adaptability, relationship building and delegation. Just like employees’ performance is measured, your business leaders should be held accountable for maintaining these values.

TLH Recruitment — the recruitment agency you need to help develop your employee retention strategy

By outsourcing your recruitment needs to TLH Recruitment, you can count on us to adapt to your business needs and benefit your employee retention strategy as your company grows. With more than a decade of experience, we’ve managed recruitment across various industries, from construction to retail, finance and payroll, administration and more.

We’ve created a name for ourselves in promoting long-standing relationships with our clients to determine what talent they require and provide the best possible fit for their workplace.

Reach out to our team today to learn how we can help your business’ employee retention strategy. Explore our blog to learn the benefits of partnering with a recruitment agency like ourselves.

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