TH Herbert is the CEO of Semarchya data software company that enables organizations to use their data to create business value.
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Amid The Great Resignation and the threat of a recession, employee retention is a challenging initiative for many companies. Between July and November 2022 more than 4 million Americans quit their job every month. In addition, Gartner says the business community could see a turnover rate as much as 24% In the years to come. While these numbers are dismal, there is still hope for companies looking to improve employee retention.
There are many reasons why workers in all industries quit their jobs, but many boil down to respect; 57% of employees who quit in 2021 say they did so because they felt disrespected at work. From a lack of transparency in company-wide decisions to inappropriate or dismissive behavior from one’s leadership team, disrespect in the workplace comes in all shapes and sizes.
Instead of turning a blind eye to these scenarios, now is the time for executives to rebuild their company culture based on trust, inclusiveness and fairness.
A positive work environment can have a lasting impact on professionals in all industries. It can increase productivity, attract higher caliber employees and retain them longer than companies that don’t prioritize their culture. Additionally, studies show that companies with highly engaged employees can see a 21% increase in profitability.
To keep scaling, business leaders must actively strive to build real connections with their teams. Whether you’re in the office or in a virtual company, I believe there are many ways to ensure that your teams enjoy coming to work every day. Here are four actionable strategies for creating a healthy work culture that will increase employee retention rates in 2023.
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Actively listen to your employees
It is not enough to send employees an annual survey asking for feedback. You should consistently create open spaces where they can share their thoughts and concerns. Unfortunately, many companies make the mistake of emphasizing the importance of accountability, but fail to take action when negative feedback is given. This lack of integrity makes employees feel that inappropriate behavior will never lead to repercussions.
Schedule both departmental and individual meetings and consistently ask your employees for feedback. Then, when you receive concerns from your team, ask more questions and implement policies that respond immediately. This will reassure your team that their voice matters and drive loyalty.
Offer clear growth opportunities
This is according to a report from the Pew Research Center 63% of employees those who quit their jobs cited a lack of advancement opportunities as their main reason for leaving. Creating an actionable path for your employees to grow in their careers effectively improves retention.
When conducting performance appraisals, consider the career goals of individual employees. Analyze their strengths and skills and offer promotions to promote growth. Encourage employees to develop their skills and create a culture where learning is valued. Deloitte reported that organizations with a strong learning culture have 30%-50% higher engagement and retention rates. Take this statistic to heart and invest your time in helping your team achieve their career goals.
Focus on corporate culture
Every company has a culture; the question is whether that culture has a positive or negative influence on the experiences of your employees. a 2019 Survey by Glassdoor found that 77% of potential employees would consider a company’s culture before applying. If this is such an important factor in attracting talent, why are so few companies working on developing a positive, inclusive culture?
The first step in creating an engaging culture is setting a goal. Define what you want your culture to be and determine the environment you want to create. For companies experiencing rapid growth or with remote and hybrid teams, this can be particularly challenging. With a diverse, distributed and remote workforce, the best practice for building corporate culture is to involve your team in the process.
Try brainstorming sessions and invite your team to discuss the mission, vision, values ​​and social responsibility they want to see at work. Then implement these initiatives by empowering smaller committees or groups to take action behind these principles.
This is what we’ve done at Semarchy, where our workforce has almost doubled in the last 18 months and we have employees on four different continents. We have learned that you cannot build a positive company culture without involving your employees in the process.
Have fun at the workplace
Don’t underestimate the power of fun. To create a strong culture, your company must prioritize having fun and making connections with your employees. The Harvard Business Review highlights these positive effects in a 2022 article, including increased levels of individuals’ creativity, engagement and purpose.
As a virtual company, my team prioritizes social activities that help us get to know each other behind our computer screens. This means more than just setting up a Zoom meeting. Virtual trivia nights, online scavenger hunts, and holiday parties are all great ways to get your remote workers involved. We strive to bring our business together both on and off the clock – and you should too.
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Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.