Employee retention: the impact of communication and involvement
Employee turnover is one of the most expensive problems that businesses face. With the average employee costing around £12,000 to replace, it’s no wonder that companies want to do all they can to keep hold of their top talent.
One of the largest factors that influences employee retention is communication and involvement. It’s been proven that companies with effective communication channels in place cut their employee turnover by half. However, as businesses scale, it becomes increasingly difficult to maintain a high level of communication and sense of inclusion in your business, therefore having a knock-on effect on the retention of your top employees. We’ve come up with five simple things you can do to make sure your communication has a positive impact on your retention rate.
When it comes to employee retention, communicating and celebrating employee success is one of the biggest driving factors for keeping your team happy. In fact, one study noted that 80% of people who quit their jobs do so because of a lack of appreciation at work.
68% of HR managers recognised that public celebration is one of the best ways to ensure employees feel appreciated at work. So whether it’s through social media, your website or an internal platform, going public and celebrating your people is key to holding onto your top talent.
Communicate your decisions
In one survey, 95% of employees admitted that they are unaware or do not understand their company’s strategy and reasons behind key decisions; something that leaves employees feeling disengaged and unappreciated.
There are lots of ways you can communicate your decisions with employees. From hosting monthly team meetings and Q&A sessions to introducing an internal management system or presenting a long-term plan; there are plenty of things you can do to keep your communication flowing from the top down. Having systems in place that allow communication to flow freely around the business (especially from the top downwards) will ensure all employees are kept in the loop when it comes to key business decisions.
It works both ways
Communication works two ways. As much as your team want you to communicate your business decisions with them, they too should have the opportunity to raise any concerns or provide you with feedback. From Director’s open days to feedback surveys and one-to-one sessions, introducing a variety of feedback channels where every team member has the chance to communicate with senior management will ensure the communication in your business isn’t one-sided.
Be clear on opportunities
According to LinkedIn’s Workforce Learning Report, 94% of employees said they’d stay at their company longer if they felt the business invested in their personal development. Therefore, creating and communicating a clear path to progression plays a major part in helping employees keep up to date with their progress and clearly understand their opportunities, making them feel more engaged and likely to remain with your business for longer.
One of the best ways to effectively communicate career development opportunities is by holding regular feedback reviews with your employees. In these one-to-one reviews, you can talk your team members through their progression and options for development, in a completely transparent way. As well as one-to-one sessions, having things like a visual career development plan dotted around your office and a clearly communicated training budget can also make a big difference when it comes to clarity regarding opportunities.
Make it social
Maintaining a good level of communication and involvement in your team isn’t just about what happens in the office. Creating an inclusive and social team where everyone can spend time together outside of the office is really important for building an inclusive workplace. Think about organising fun socials where the whole team can get involved; this will boost employee morale and ensure the whole team feels properly included.
It’s clear that communication and involvement has a direct impact on the retention of your employees, so finding ways to enhance your communication is imperative to holding onto your top talent. Just a few small changes to the way you interact with your team could make all the difference. If you’re looking for more advice on how to improve communication and involvement across your business, check out our Retention Report, or take a look at our Retention Solutions blog.