Establishing a successful employee retention strategy

Read our guide to establishing a successful employee retention strategy for your company.

What is employee retention?

While finding good people for your company is crucial, keeping them is equally as - if not more - important. The cost of a high personnel turnover can be significant. Good employee management can mean top talent is more engaged and will stay with your organization longer.

Employee retention
While finding good people for your company is crucial, keeping them is equally as - if not more - important.

Why is having an employee retention strategy important?

Finding a good candidate in the job market and recruiting them comes with a cost and consumes valuable time. Investing time and resources into finding talent and the recruitment process pays off more if your employee turnover stays as low as possible. Employees that stay with the company tend to be more valuable as they can go through professional development which is likely to improve employee retention, improve job satisfaction and make your team more productive. Employees are the cornerstones of your business's success - working on good connections between you and your employees and creating a good company culture will pay off.

Group of employees in office
Finding a good candidate in the job market and recruiting them comes with a cost and consumes valuable time.

Employee retention rates - explained

What a good employee retention rate is depends of course on your business, industry, and the economic circumstances your company is operating in. However, recruitment agencies generally advise that businesses should aim for 90% employee retention rates. A figure around the 80% mark might be more realistic though. To calculate the rate at which your business can retain employees, you divide the number of employees who have stayed with the company over a set period by the total number of employees at the start of that period, then multiplying that number by 100.

People working in office
What a good employee retention rate is depends of course on your business, industry, and the economic circumstances your company is operating in.

Employee retention strategies - examples

Of course, there is a number of strategies to have engaged employees and retain them. The best employee retention strategies look at the entire lifecycle of employee engagement.

  • This starts with your hiring process - ensuring that people are recruited for the right positions is key in having motivated employees. Ideally, your team members have active plans to build their careers within your company.
  • Next, the progression opportunities within your company are extremely important. Without any opportunities for growth and development, employees are likely to look for a new job. Progress opportunities can range from regular training to internal promotions and new opportunities.
  • Of course, a competitive salary will have a positive effect on your employee motivation. Ensure your employees get regular pay reviews and perks.
  • Last but not least, employee wellbeing has become an increasingly present subject. It is crucial for any business wishing to grow to create a positive work environment and ensure work-life balance. Particularly when your employees are (partly) working from home, a healthy work-life balance is more important than ever.
Employees working from home
Particularly when your employees are (partly) working from home, a healthy work-life balance is more important than ever.
Watch the Webinar Recording

Start Your Free Trial

Let informed predictions and powerful reporting guide your business. Be ahead of the curve with Futrli.

Get business advice here

Our blog holds tips, how to’s and general business advice.

Futrli News

Futrli's February 2024 Release

This is some text inside of a div block.

Heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.

Futrli News

Futrli's February 2024 Release

Accountants

3 Apps to beat accounting blues and scale your firm

Chris Downing catches up with three accounting app innovators to discuss the apps that they have developed that directly help accountants.

Accountants

Where most prediction software falls short

Tread carefully when looking for prediction software. Find out how to dig deeper into your predictions with the tools that count.

Small Businesses

Cash is King! 4 ways to keep your cash flow healthy.

Cash flow is essential to your business’ survival. Read our top 4 tips for taking control of your cash flow.

Small Businesses

10 Common Cash Flow Forecast Hurdles

If there’s one thing that all small and medium-sized enterprises should prioritise, it’s their cash flow. Read on to find out the top 10 most common issues.

Accountants

Empowering Accountants: How to Embrace Uncertainty with Futrli

The future is far from certain. Find out how Futrli helps accountants wade their way through murky, grey, “This might happen”-type scenarios.

Small Businesses

Inflation affecting your hospitality business? Take back control with these three steps.

Acting quickly is key to ensure you can ride out the incoming storm. Find out more in this article.

Small Businesses

Why cash flow forecasting helps businesses survive downturns in trade

Learn how cash flow forecasting is crucial for surviving slower trading periods.

Accountants

The 7 reasons why SMEs struggle with cash flow management

Find out the 7 major reasons why your clients’ businesses struggle to achieve a positive, healthy, consistent cash flow.

Accountants

Take clients from compliance to scenario planning in five steps

Scenario planning helps your clients imagine different environments or realities in the future, guiding the plans and decisions your clients make.

Accountants

Flash reports and why to build them

This short guide covers what Flash Reports are and how you could use them as a speedy solution for your clients’ reporting needs.

Small Businesses

Head of Accounting and Futrli COO discuss challenges and solutions for small businesses.

Read Dan and Helen’s thoughts on how SMEs can protect themselves during what is set to be a challenging year.