“The Great Resignation” is an economic phenomenon occurring since early 2021, following the COVID-19 pandemic. This trend has been marked by many employees voluntarily leaving their jobs. As a result, employee retention has become a major challenge for not only startups but many established companies as well. According to recent data, over 4 million Americans left their jobs each month between July and November 2022, and the business sector may face a turnover rate of up to 24% soon. Despite these bleak statistics, businesses still have qualitative opportunities to improve employee retention rates.
One of the main reasons for employees leaving their jobs is a lack of respect, with 57% of those who quit in 2021 citing feeling disrespected at work. Disrespectful behavior from leaders, such as a lack of transparency or inappropriate conduct, can cause employees to feel undervalued and unsupported.
Instead of ignoring these issues, managers must focus on rebuilding company cultures and prioritizing trust, inclusivity, and fairness. Creating a positive work environment can have a lasting impact on employee satisfaction, productivity, and retention. In fact, research shows that highly engaged employees can lead to 21% higher profitability for companies.
Business leaders need to take actionable steps to build genuine connections with their teams and create a healthy workplace culture. Whether in-person or virtual, many strategies can improve employee retention rates in 2023. Here are four effective strategies for building a positive work environment.
Active Listening
Simply asking employees for feedback through an annual survey is no longer enough. It is important to regularly create an environment where employees feel comfortable sharing their thoughts and concerns. Unfortunately, some companies only pay lip service to the importance of accountability and do not act when negative feedback is received. When this happens, employees are led to believe that their concerns don’t matter.
By actively listening to your employees, you can create a culture of openness and accountability that encourages honest communication. Therefore, holding regular departmental and individual meetings is fundamental to asking for employee feedback. When concerns are raised, it is important to ask follow-up questions and take genuine steps to address them. Remind yourself daily of the adage “What you give is what you will get back,” and you will find that your efforts will not go unrewarded.
Up The Corporate Ladder
Invest your efforts in helping your employees meet their career goals. According to a Pew Research Center study, a significant percentage of employees (63%) who resigned from their jobs did so because they felt there were no opportunities for career growth. To keep your employees at their desks, offering clear paths for career advancement is vital.
During performance evaluations, it is important to consider the career aspirations of each employee. You can identify areas for promotion and growth by assessing their strengths and skill sets. It is also essential to foster a culture that values learning and development. A strong learning culture can boost engagement and retention rates by 30%-50%.
Get Everyone Involved
Every work environment has a culture that either positively or negatively impacts its employees. Glassdoor conducted a survey in 2019 which revealed that 77% of potential employees consider a company’s culture before applying.
The first step in creating an engaging culture is to define your objectives. Determine the type of environment you wish to develop and the culture you want to foster. This can be particularly challenging for companies experiencing rapid growth or with remote and hybrid teams. Therefore, it’s good practice to involve your team in the process.
Consider brainstorming sessions and encourage your team to share their thoughts on the mission, vision, values, and corporate responsibility they want to see in the workplace. Follow through on these proposals by empowering smaller committees or groups to implement them.
Work Doesn’t Have to Be Boring
Do not underestimate the impact of having fun even in the workplace. Prioritizing fun and building connections with employees is a key component for creating a strong company culture. The positive effects of this approach were highlighted in a 2022 article by the Harvard Business Review, which noted benefits such as increased levels of creativity, engagement, and purpose among workers.
Place a strong emphasis on social activities to help connect and build relationships beyond your computer screen. This goes beyond simply scheduling Zoom meetings. Activities such as virtual trivia nights, online scavenger hunts, and holiday parties can be a great way to engage remote employees while having fun!