In today’s business world, employee retention rates say a lot about a company. Studies have shown that a happy employee will stay in their job four times longer than an unhappy employee. While there may be extenuating circumstances as to why employees leave a business, most commonly when an employee resigns from a company, their needs are not being met in some form or another. Employees typically require satisfaction in several different areas of work in order to be happy in their job: company culture, income, benefits and work-life balance.
Company culture primarily comes down to the presence of fairness, respect, integrity and teamwork in the workplace. As well as employee satisfaction, company culture influences the performance of the business as a whole, impacting the areas of productivity, creativity, profitability, growth and company value.
A competitive salary shows that a company values its employee and their work. Equitable salaries can both attract and retain employees. With continuous changes in the job market, it is important for employers to regularly reassess salaries using support from industry reports, salary guides and government statistics.
Work benefits are provided to employees on top salaries and wages and provide extra incentives. Benefits can include insurance, bonuses, transport allowances and work from home days. Benefits as minor as providing snacks in company break rooms can impact on employee satisfaction.
Work-life balance is important to the overall happiness of an employee their daily life both inside and outside of the workplace. Employers can encourage a healthy work-life balance for employees by being willing to offer flexible work schedules and encouraging employees to take vacation time.
Most managers in the workplace are promoted for being good at their job but this does not undoubtedly mean they are good at making the people around them better. As a result, many managers have not been properly management trained and the effects on these companies show. Due to poor management, many businesses fall short when it comes to performance reviews, motivating team members and providing paths for career progression. As the saying goes, people don’t quit a job, they quit their bosses.
A high turnover of employees can be a red flag for prospective new hires. Employees that stay with a company for an extended period of time represent the company is a positive light by showing there is a strong promise of building a career within that company and maintaining a happy work life.