Employee turnover is the rate at which employees leave an organisation, either voluntarily or involuntarily. It can be a significant challenge for employers, leading to increased recruitment costs, loss of productivity, and disruption in team dynamics. Research by Reed.co.uk found that over a quarter (26%) of businesses are hiring right now to reduce the impact of employee turnover*. In this article, we explore four key ways to increase staff retention.
1. Enhance compensation and benefits
According to research from our sister company Reed.com**, over half of UK professionals (55%) are currently looking, or considering looking, for a new job because their salary isn’t enough or the benefits they receive are insufficient. This underscores the importance of offering competitive compensation packages to attract and retain top talent.
Conducting regular reviews and benchmarking salaries against industry standards is essential to ensure that employees are fairly compensated. By staying up to date on salary trends, organisations can make informed decisions about compensation adjustments to remain competitive in the market. Tools such as Reed’s 2024 salary guides provide insight into average pay for a variety of roles around the UK, as well as changing trends across 16 sectors. Each salary guide uses data from 17 million jobs posted since 2016, enabling you to benchmark average salaries for your organisation.
Likewise, implementing performance-based incentives such as bonuses, profit-sharing schemes, and merit-based salary increases can motivate employees to excel in their roles. These tangible rewards for hard work and dedication inspire greater employee satisfaction.
In addition to competitive salaries and performance-based incentives, employers should offer comprehensive benefits packages that address employees’ diverse needs. Health insurance and professional development opportunities are valued add-ons that can enhance job satisfaction and loyalty among employees.
2. The importance of work-life balance
A recent study by Forbes Advisor found that over half (54%) of British workers would accept a lower-paid job in exchange for a better work-life balance.
Work-life balance is another important factor in employee retention and can be a powerful employee perk if your business can’t afford a salary increase or monetary benefits. Offering flexible work arrangements and supportive policies can help employees manage their personal and professional responsibilities more effectively, leading to lower rates of employee burnout, and higher job satisfaction and retention rates.
3. Create a positive work culture
A positive work culture characterised by open communication, mutual respect, and recognition can significantly impact employee retention. Employees who feel valued, appreciated, and trusted are more likely to stay put for the long term.
HR technology company Zavvy found that 94% of employees would stay longer at a company if it offered learning and development opportunities. To help keep talented professionals motivated and eager to shape the future of the business, companies could promote in-house leadership schemes for those who show potential or offer mentorship programmes to increase knowledge and skills.
Remember that a positive culture is no longer just Friday drinks and a ping-pong table – it’s about recognising employees for their contributions, providing opportunities for growth and development, and promoting a sense of belonging. All of these factors help to create a supportive work environment where employees thrive.
4. Stay flexible and adaptive
Finally, remain flexible in responding to the evolving needs and expectations of employees. Regularly reassess and refine compensation and benefits to ensure they remain aligned with market trends and employee preferences. Remember to promote what your organisation has to offer in your job ads, on your website, and across your social media channels. This will attract people who value these attributes and help keep your business competitive.
Addressing the impact of insufficient salaries and benefits is crucial for minimising employee turnover and fostering a positive and productive work environment. As professionals struggle to keep up with ongoing cost-of-living pressures, employers can be instrumental in supporting workers both financially and emotionally with rewards and incentives, and ultimately drive long-term success and sustainability.
Looking to benchmark salaries or find out what you could, or should, be earning in 2024? Download Reed’s salary guides for insight into salaries and benefits across 16 sectors.
*Survey commissioned by Reed.co.uk consisting of 257 UK hiring managers between 9 – 13 February 2024.
**Research completed by Reed.com consisting of a survey of 5,000 UK workers in November 2023.
