Employee retention

Scope

All employers with one or more employees should be concerned with employee retention.

Regulatory citations

• None

Key definitions

• None

Summary of requirements

Employers have many options for increasing employee retention. Many of the choices may depend on company policy or culture. Retention can be approached in a formal or an informal way. The most important thing is that employee retention is an important part of the continued success of any business and it must be addressed by all management personnel in a positive manner.

Several aspects of company policy and culture affect employee retention, including:

• Benefits. Most employers offer various benefits to promote employee retention. These benefits include paid vacations and holidays, various insurance programs, paid sick days, and retirement plans. This list is not all-inclusive as employers can offer many other benefits as well.
  
  In addition to these benefits, employers often offer other incentives to promote employee retention such as flexible schedules, casual dress, employee appreciation, and in the trucking industry, guaranteed home time.

• Recognition. Often times, a little appreciation goes a long way toward employee retention. Some employers use formal recognition programs such as safety and fuel conservation awards, while others choose a less formal approach. Studies have indicated that one of the most important aspects related to employment longevity for employees is recognition and appreciation for the work they are performing.
  
  Acknowledgment for a job well done can be done at any time, even during financial difficulties. Most employees simply want to be treated well, and acknowledged for their positive contributions to the company. This can be as little as a “free” discussion, with a realized long-term “value.”

• Communication. One of the easiest ways to get employees to excel in their duties is to create a deep understanding within all employees as to the goals and vision of the company, the department, and the supervisors. By keeping employees involved in projects, decisions, and plans, they feel that they are more than just a “machine” whose sole purpose is to come to work and produce a product or service, day-in and day-out.

• Training. Employee development (training) is necessary to help some employees understand the expectations of the company and how they, as an employee, are expected to meet those expectations. This not only improves the performance of the employee, but also shows a commitment by the employer toward the continued success of the employees. In this way, employees are not seen as readily dispensable, but as well trained and knowledgeable participants in the business.