Think your team is thriving and happy?

Imagine the shock you experience when your star players hand in their resignations, revealing months of dissatisfaction before seeking greener pastures. Suddenly, you’re faced with the harsh reality that losing them could affect your employee retention rate and significantly impact your business. With today’s hiring landscape, it takes an average of 44 days to replace top talent, urging you to strategise swiftly while addressing hiring hurdles.

But wait, there’s more to consider. Employee turnover isn’t just an emotional blow; it hits your bottom line hard. Losing an employee, especially a top performer can cost up to 33% of their annual salary in direct replacement costs, and when you factor in indirect costs, that number jumps to a staggering 50% – 60%. Moreover, companies grappling with low employee retention rates see profits plummet by up to 500% compared to those with high employee retention rates.


How can you reduce turnover and boost employee retention rates?

Offering competitive compensation is a strong start to keep top talent interested in staying with the team. While good compensation is a great start, there are other employee retention strategies to consider. However, before implementing any strategy, it is crucial to understand why employees leave and find effective methods to boost engagement and satisfaction. Let’s dig in!

Here are some common reasons employees choose to leave and how to address them:

  • Poor work-life balance: A survey by FlexJobs found that 65% of employees believe they would be more productive working from home than in a traditional office environment, with no prolonged working hours, overwhelming workloads and  a lack of flexibility. To balance the strings between work and life, offer flexible work arrangements, such as remote work options, flexible hours, and paid time off. Also build a positive work culture and encourage managers to lead by example.


  • Absence of career advancement opportunities: A LinkedIn survey indicates that 94% of employees would stay at a company longer if it invested in their career development. Employees are motivated by opportunities and when they perceive limited growth potential within their current organisation, they often begin exploring better opportunities elsewhere. One of the keys to building a strong employee retention rate is to focus on their development. Talk about professional growth during one-on-ones and find out what employees want from their job as well as their future goals. 


  • Lack of engagement and alignment with company values: Highly engaged employees often experience a sense of ownership in their tasks and are motivated to drive innovation and factors that can position a business ahead of its competition. When there’s a lack of engagement and alignment with company values, employees seek opportunities and desire to transition to companies with higher engagement and recognition.  To address this, involve employees in decision-making processes, encourage feedback, communicate company values and objectives clearly, and align individual goals with organisational goals.


Having an employee engagement solution like SeamlessHR makes the process easier to connect with employees and get the most of your employee retention strategy

Click here to gain more insights on how to improve employee retention rate.