With everything that is happening in the world right now (frozen premiums, downsizing, higher insurance premiums, etc) employee retention incentives may seem to be a luxury that most companies simply cannot afford. However, if they were to dig a bit deeper into the whole thing, they would find that it is actually a proven formula for reducing the cost of frequent employee turnover. This is when the perspective of associated costs changes after the actual value of these programs is properly considered. resume examples
First things first: It won’t fix a malfunctioning company
The company has to have a crystal clear vision as to the direction they want to be going in. They need to know what it is that they actually want to achieve. While these types of recognition programs are really great, they cannot just magically solve the issue of a malfunctioning or bad company. There are some basic things that need to be in place for you to be able to attract the best talent out there in the market.
The business owner will play a critical role in the formation of this culture, a culture that actually nourishes its employees to achieve their maximum potential. A bad owner or a bad manager can make it really difficult for employees to work at your business. This will result in a lot higher employee turnover, which is extremely costly.
Honest Recognition and Communication
A very important thing that all good managers and employers are aware of, is the fact that humans, in general, are a very needy lot. However, this also means that a lot of us are driven by the same things, we all kind of share very similar needs.
Is it any wonder then that there have been numerous studies that have postulated that direct, honest communication and sincere recognition, will bring about a sense of belonging in the employee. This will improve employee retention greatly. The best part about all of this is that it does not cost anything.
It is a proven fact that companies that make sure that all employees, not just managers, are involved in higher-up decision-making, will experience a lot more loyalty from their employees.
It is important that employers realize that no individual employee will like feeling like a rusty cog. Even someone who does physical menial labor may have ideas that can benefit the company. If the workplace does not encourage employees to speak out, not only will they be demoralizing employees but they will also potentially miss out on some great ideas. Employees do not like to find things out through the so-called, “grapevine.” If they get the same information directly from a higher up, it will drastically improve both their motivation and morale.
Employee Retention Incentives Ideas
The very first thing to do would be to make sure that you know what is attractive to your employees. Make sure that you are open to all of the ideas.
How you will structure your incentive program will depend a lot on the type of business you are running. The size of the business, the culture present there, and the particular objectives of a company will inform them on how to structure their retention incentive programs. Let us take a look at some of the more standard practices that employers use:
Flexible time. It is safe to say that Covid has really shown us that most of the office work can really be done at home. It has also shown us that with greater flexibility comes greater employee workplace satisfaction. If you really look at the thing in detail, you will soon realize that the entire thing is not that difficult to pull off.
PTO plans. This is a more recent workplace culture that has developed in many of the more developed countries of the world. Personal time options, or PTO, allow employees to take time off for personal reasons. It can be anything like having a sick child, a “mental health” day, or a vacation day.
Performance-related compensation. This is sometimes also known as “distributing the wealth.” When employees are able to bring in certain desirable work achievements, then they ought to be eligible for performance-related compensation. Employees will greatly benefit from these programs and it will also improve their loyalty to the company.
Lifestyle perks. Things like parking spots, subsidized daycare, merchant discounts, and also travel centers; these simple perks and many other similar benefits can really help the company when it comes to employee retention incentives. This will showcase how caring the company actually is towards its employees.
On the other hand, in many cases, we forget to give incentives or other benefits to freelance or remote workers. Since they are not in front of you, there is no one to talk to about their problems. So you also need to plan for employees of the freelance project or remote staff. It will help you to get better results. For example, submitting an NEC form to IRS on a freelance contract when it is on average $600. Many times, managers don’t care about it, But need to mention, the fillable 1099-NEC form that can be created online in just a few minutes. So we have to work to improve the performance of the staff in those matters. Only then your business will reach its target quickly with reliable staff.