Your company culture can make — or break — satisfaction levels.
Every organization knows losing employees can be expensive. In addition to the resulting knowledge gaps, reduced productivity, potential operational delays and other problems, research has shown employee retention issues can have a very real impact on the bottom line.
In the U.S., turnover can end up costing companies 21 percent of an employee’s annual salary, according to a Center for American Progress study. As The Telegraph reported, British businesses spend a minimum of £4.13bn on employee turnover every year, according to Oxford Economics research. Organizations that truly understand — and support — employee retention programs have a much better chance of avoiding profit-shrinking turnover issues.
These three companies, for example, have developed highly effective retention strategies that blend a strong company culture with an invigorating atmosphere and, in some instances, a personalized employment experience.
Could any of their employee retention efforts help your organization raise retention rates?
- A company culture that makes employees feel important: Perks like free food are great; and Google employees most likely enjoy the snack stations and cafes located around the tech giant’s campus. However, one of the key employee retention strategies at Google — which has ranked at the top of Great Place to Work Institute U.K.’s annual list of the world’s 25 best multinational workplaces for three consecutive years — is the company’s supportive, personalized, family-like atmosphere. Leaders work to maintain a company culture where employees feel valued. Google managers try to ensure employees are working on projects they feel are meaningful. At the same time, Google tries to make employees’ lives easier through a number of efforts, ranging from decorating offices for local festivals to providing on-site medical care so workers don’t have to look for a doctor when they aren’t feeling well — an approach that, according to co-founder and CEO Larry Page, has a direct effect on productivity.
- An emphasis on work-life balance: Integrated energy company Chevron’s mantra — the Chevron Way — stresses its commitment to sustainable economic progress and its workers. The company includes employees on its list of stakeholders. Its safety-centric company culture also features a focus on encouraging employees to succeed and have a fulfilling life. Chevron offers a number of health-related perks, according to Entrepreneur, including providing on-site fitness club memberships, massages and insisting workers take breaks. CEO John Watson told Business Insider Chevron even sports a high internship employee retention rate, which he attributes to interns’ first-hand experience with its company culture and several-year training, development and mentoring program.
- Ensuring employees continue to feel challenged: Consider Bain & Company, one of Glassdoor’s picks for the best places to work in the U.S. and U.K. Bain is quite clear about its commitment to excellence, describing its learning curve as “steep, but exhilarating.” Employment is presented as an ongoing learning opportunity — the company says its environment is supportive; however, resting on your laurels isn’t an option. Every team member is expected to participate and contribute ideas to help clients.
As retention strategies go, emphasizing a fast-paced atmosphere may, at first, seem like an odd approach. It’s clearly working, though: Bain landed a spot on Glassdoor’s best employer list through anonymous employee surveys.
Not sure any of the above ideas would work at your organization? Use our 10 ways to improve your employee value proposition and how to boost your company culture by creating the ideal employee recognition program to help drive employee retention rates up — before you lose another prized team member.