During the past few decades, the workplace has changed significantly. One of the biggest shifts is how long employees remain with a single employer.
While a half century ago it was common for the majority of workers to stay with one employer for many years—or even an entire career—today's employees often change jobs every few years.
That matters to employers: workers who stay longer develop deeper knowledge of the company, its brand, products and customers, which makes them more valuable than many new hires.
Loyal, long-term employees can also help reduce a company's level of risk; for some employers, participating in Risk Retention and Purchasing Group Programs is one way to manage certain exposures.
Still, when companies take stock of assets they sometimes overlook the value of employee loyalty and focus only on tangible items. Many employers also may not know where to begin when building retention strategies.
Retention tips
- Implement career paths that offer opportunity for advancement, and communicate clearly how employees can move up within the company.
- Proactively monitor morale and seek out improvements that matter to your workforce.
- Design management training around what makes an effective manager from an employee perspective, not just what managers want.
- When considering compensation, think beyond base pay to include health benefits, paid time off, retirement plans and other perks.
- Teach managers how to give consistent, constructive feedback and mentoring, and ensure they listen to and value employee input.
When evaluating benefits, consider programs that support employee health and convenience, such as Employer-sponsored on-site clinics and workplace wellness programs, which can improve retention and reduce absenteeism.
Learning to retain employees isn't rocket science, but it does require commitment and time. Start by brainstorming small, practical changes your company can implement and measure the results over time.
If you want help tailoring benefits or retention strategies for your business, talk to your agent.
Frequently Asked Questions
What is the biggest benefit of retaining long-term employees?
Long-term employees bring institutional knowledge and consistent customer relationships, which improves productivity and lowers hiring risk.
Which benefits have the biggest impact on retention?
Competitive pay, reliable health coverage, clear career paths and meaningful time off are commonly cited as top retention drivers.
How can small companies compete with larger employers on retention?
Small firms can emphasize flexible work arrangements, personalized development plans and strong manager coaching to retain staff.
How should managers give feedback to improve retention?
Provide regular, specific feedback focused on development, and combine it with listening sessions to understand employee needs.