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Tips For Boosting Employee Retention in A Post-Pandemic World

The covid-19 pandemic has changed the way the world works in so many different ways. Covid has changed the way we travel, the way we socialise and one of the biggest changes is the rise in popularity of flexible working options for employees.

Now that more people are working from home and ultimately the employee has more power in a post-covid world when compared to before covid. As a result of this employers are having trouble retaining some of their most valuable employees. Here are some tips to help employers boost employee retention in a post covid world.

Understand The Importance of Having Flexible Working As An Option For Your Employees

Although most people are able to return to the office now if they want to, there is also a large number of employees who are resisting the everyday commute becoming the norm again. A survey showed that 95 percent of workers say they prefer working from home in some capacity. This illustrates that there is a clear expectation for flexible work arrangements to continue post covid-19.

Furthermore, 62 percent of employees say they wouldn’t even consider a new employer who doesn’t have a flexible working policy. 81 percent of people surveyed said that a company that allows for flexible working is really important to them when looking at future roles. 

Offer Your Employees Practical Support

Navigating the post-covid world and negotiating a hybrid working balance that is beneficial to both employers and employees is now an important consideration for all businesses. Those who don’t support staff in their desire to maintain a flexible work situation will find themselves at risk of losing some of their most talented employees. 

However, just agreeing to your employees working flexibly isn’t enough; it’s about supporting them to work effectively and productively from anywhere. Research shows that both employers and employees get the best out of hybrid working when their home office reflects the ergonomics of a traditional office environment. 

Be A Leader for Your Employees Not a Boss

Very few people want to be leaders, but everyone wants to be the boss. Remember, though, that people follow leaders, while they abandon bosses. A boss is a dime a dozen while leaders are rare.

It is important to make sure you have a clear direction towards the future. Good leaders let employees know where the company is headed. Bosses don’t share information and leave employees wondering if there’s good or bad coming down the pipe and if they should be concerned.

A leader also believes in the importance of people. A great leader considers employees their most important asset. Bosses are more focused on numbers.

A great leader also Inspires confidence in his employees. Good leaders make employees feel confident about their ability to lead them to a good place. Bosses on the other hand have a tendency to inspire passive-aggressive frustration as employees question the decisions that have been made that have affected them negatively.

Realise That Counteroffers Don’t Always Lead To Retention

Attempts made by businesses trying to retain employees by making a counteroffer are falling short. Recently published research has discovered that of the 50 percent who do accept the counteroffer will resign from their position of employment within the next 12 months.

According to the research, 82 percent of business leaders surveyed are concerned about retaining employees in 2021. 

To fight the issue, many are finding themselves extending counteroffers in an attempt to retain employees. Despite this, 52 percent of employees who accept a counteroffer leave in a year or less. Of these employees who leave one in five leaves in less than six months.

Counteroffers are more often a tool to assist the employer. Particularly in a competitive market, it can be tempting to make counteroffers in order to retain institutional knowledge and avoid the resource-intensive exercise of recruiting, onboarding and training a new employee.

The fact that a counteroffer is designed as a tool for the employer, rather than the employee, is the major reasons why counteroffers are an ineffective retention strategy.

Although offering a salary increase may seem like a cost-saving initiative, a counteroffer doesn’t necessarily advance the career of the employee, so in most cases, the employer is still left with a dissatisfied employee who was motivated to leave the organisation in the first place.

Rather than being reliant on reactive counteroffers to address staff retention, business should be looking at their existing retention strategies as a proactive mechanism to ensure employees feel satisfied, valued, and therefore less likely to court competing offers.

Some more effective strategies could include conducting regular salary reviews to ensure their compensation is competitive, establishing clear career paths with individual employees to help their progression and reduce the appeal of a competing title change, and offer flexible working arrangements to support employee work/life balance.

EFX Accountants and Advisors