In the wake of the Covid-19 pandemic, many companies have adopted remote working as the new norm. Now, after nearly two years of working from home, more employees consider the permanent adoption of this way of working a decisive factor when it comes to staying with a company. In fact, Owl Labs’ State of Remote Work Report found that one in two employees won’t return to jobs that don’t offer remote work.
With the increasing number of employees demanding remote work, 88 percent of HR leaders agree that attracting and keeping the right talent is critical to manage unwanted turnovers. When 73 percent of employees are planning to leave their current job, it is time for employers to consider implementing strategies to improve remote employee retention.
Adding remote work and its benefits, as mentioned in this piece by Software Dev Tools, to your retention strategies is key when keeping turnover low.
Why does remote employee retention matter?
Finding the perfect candidate for a remote position can be an expensive and complex task, so once companies hire employees who have the experience and the talent to fulfill a role, they can’t afford to lose them.
Retaining employees is one of the greatest challenges HR departments face, but it is more necessary now than ever in the remote work era. Retention is an indicator that shows the workforce’s degree of commitment to their company. This loyalty is based on the time and effort employers put into understanding and acting upon the employees’ best interest.
Caring for employees’ needs and ensuring they are committed to the company is key to reaching goals and improving long-term results. Companies that invest time and resources into keeping qualified talent in their ranks can see many benefits, including:
Increased competitiveness
Employee retention can lead to gains in competitiveness, as companies with loyal team members have a clear advantage over companies with high levels of employee turnover. Retaining the top-performing employees means their knowledge and expertise stay within the organization.
Reduced costs
By implementing a good retention strategy, companies can save time and money. According to Gallup, replacing an employee costs 150 percent of that employee’s annual salary. This means that a high employee turnover represents an excessive cost for companies — not only because of the loss of talent, but also because it means companies must put finances toward attracting, hiring, training, and retaining a new employee.
Enhanced team collaboration
Having a good organizational climate is essential for the success of any organization. Talent retention not only helps to keep talented employees, but it also improves team efficiency and interactions — unified, enthusiastic teams are better able to achieve the company’s objectives.
Increased productivity
Companies that value and appreciate their professionals see a direct impact on commitment and productivity. Eighty five percent of companies that spend one percent of their budget on employee recognition see a positive impact on engagement, making it grow by almost 60 percent. In addition, retaining employees through perks like attractive benefits programs leads to stronger loyalty and effort on behalf of the employees who feel a greater responsibility to ensure they don’t let their team and the organization down.
Improved employee experience
Employee retention has a direct impact on employee experience. Based on a survey of more than 23,000 employees in 45 countries, people who have a feeling of belonging, purpose, and happiness are 53 percent less likely to intend to leave their organizations. When companies focus efforts and resources on ensuring their employees’ wellbeing, they improve the overall employee experience.
Strategies for remote employee retention
Creating a successful retention plan not only helps lower turnover but makes organizations more attractive places to work.
Here are some tips to build an effective remote employee retention plan:
1. Identify the causes of turnover.
There are several reasons that affect an employees’ decision to leave their company. Eighty-two percent of employees say the main reason they would leave their job is lack of progression, followed by low pay, bad leadership style, poor benefits, and lack of flexible schedules. Identifying these causes will help companies implement a plan to prevent turnover.
2. Create a flexible, open work environment.
Many employees value a flexible work environment over compensation. In fact, 72 percent of employees would search for new opportunities if their schedule wasn’t flexible. Implementing changes to work policies can help improve retention rates.
In addition to a flexible work environment, do your employees feel comfortable voicing ideas or opinions? Do they feel safe in your organization? Although the answer to these questions should be an easy yes, it is worthwhile confirming this, as the work environment plays a significant role in maintaining employees’ satisfaction and wellbeing.
3. Establish a remote work expense reimbursement policy.
In the traditional workplace, employers provide employees with equipment, office supplies, internet, and all the tools they need to perform their tasks, and that should not be different from the remote workplace.
However, 56 percent of employees were not allowed to take equipment from the office and one in three workers had to buy their own remote work equipment and were not reimbursed for those expenses. This situation drove employees to file expense reimbursement lawsuits.
Establishing an expense reimbursement plan helps companies remain compliant with local labor laws and ensures employees have access to everything they need for their remote work setting.
4. Support employees with talent and career development programs.
According to LinkedIn, 94 percent of employees would stay at a company if it invested in their career development.
Development programs should be designed to ensure alignment between your expectations for top talent and the organization’s goals and vision. Professional development can include coaching processes, training seminars, networking opportunities, mentoring, special projects, and more.
Providing opportunities for talented employees is essential to keep them motivated. Employees expect to grow and develop while working at a company. If employers set a clear career path for their employees, their workers will feel they have a future with the organization and plan to stay long term.
5. Implement a thorough feedback and performance appraisal process.
Feedback is especially useful during the development of retention plans, and 82 percent of employees appreciate it. Feedback is essential in a remote environment; it establishes a benchmark for behaviors and skills and highlights what employees need to remain happy with their employer. Companies must be open to listening to employees and implementing changes and actions required to keep top talent.
6. Develop an effective employer branding strategy.
Employer branding has become increasingly important. According to a LinkedIn study, a strong employer brand can reduce turnover by 28 percent and the cost of hiring by 50 percent.
The communication and dissemination of the company’s image and actions are key to maintaining employees’ interest in remaining with the company and contributing to its success through specific projects.
7. Offer competitive benefits.
Companies that offer competitive compensation and benefits can see 56 percent lower attrition. With the ever-changing labor market, companies need to adapt to employees’ evolving and growing needs and expectations. Nowadays, the most valuable benefits include remote work flexibility, employee discounts, time off, and financial advice.
How can we help?
Creating and implementing an employee retention plan is equally beneficial for both employees and companies. However, this task can be a challenge. Globalization Partners’ AI-driven global employment platform is powered by our HR experts and helps manage administrative tasks related to your retention strategy, including employee benefits, payroll, and more.