Hiring top talents in today’s selective labor market has never been harder. So much so that we even had a dedicated guide on how to attract employees to help you do just that. In this blog, let’s just sit down for a moment and imagine that you have triumphed over the hurdles of hiring good employees. Awesome feeling right? But how do you keep them engaged and loyal to your company? 

Key takeaways: 

• Some of the reasons employees leave their jobs include the need for a challenge, a desire to feel valued, and the want of a higher salary.
• Streamlining our on boarding process and investing in your employee’s development are examples of the simple steps you can take to retain new employees.
• On-Demand Pay brings the control back to the hands of employees helping them deal with financial stress which results in increase employee engagement.

Read on as we explore the key steps employers can take to ensure their newly hired talent stays motivated, productive, and committed to the organization's success. 

Why is it difficult to retain employees?

Before diving into how to retain new employees, it's best to understand the underlying reasons why employees leave their jobs in the first place. 

One of the biggest concerns that employee turnover presents is how much it costs companies financially primarily due to the costs associated with recruiting and training new staff to fill the positions left vacant by exiting employees. While the exact cost linked to turnover may differ per company, there's a clear imperative for employers to effectively address and manage this issue.

According to Indeed.com, employees quit their jobs commonly because of the following:

1. Needing more of a challenge
2. Looking for a higher salary
3. Feeling uninspired
4. Wanting to feel valued
5. Seeking a better management relationship
6. Searching for job growth and career advancement
7. Needing more feedback or structure
8. Wanting a different work environment
9. Looking to live somewhere else
10. Feeling conflicted with workplace policies

While you’re not expected to solve these issues all at once, as an employer, you’re expected to understand why people leave your company. That way, you have a better understanding of what is going on just by looking at the trend. It gives you an idea of what areas you should focus on improving moving forward. 

How to Retain New Employees: 5 Key Steps

Employee retention is vital for maintaining a positive work culture and reducing turnover costs.

Let's dive into these essential techniques that will help you retain your new employees and foster a thriving work environment.

Step 1: Streamline Your Onboarding Process

Creating a structured onboarding plan:

An organized and well-structured onboarding plan can set the tone for a new employee's experience. It helps them understand their roles, responsibilities, and the organization's culture right from the start.

Assigning a mentor or buddy:

Having a designated mentor or buddy for new employees helps them feel supported and connected. This person can guide them through the initial days, answer questions, and provide insights into the company's dynamics.

Providing necessary training and resources:

Equipping new hires with the tools, resources, and training they need to succeed is crucial. Adequate training ensures that they can contribute effectively and feel confident in their roles.

Step 2: Invest in Employee Development

Offering professional development programs:

Showcasing a commitment to employee growth and advancement is essential. Providing access to professional development opportunities like workshops, seminars, and skill-building courses can keep employees motivated and engaged. This could address the issue where employees leave their jobs due to the lack of growth opportunities and is especially beneficial for those seeking extra challenges at work.

Supporting continuing education and training:

Encouraging employees to enhance their skills through continued education demonstrates a dedication to their long-term success. This can be done through educational allowances or flexible scheduling to accommodate learning.

Promoting a growth mindset:

Fostering a culture that values learning and adapting can have a significant impact on employee satisfaction. When employees feel encouraged to take risks and learn from challenges, they're more likely to stay engaged and committed.

Step 3: Work-Life Balance and Employee Wellbeing

Promoting a healthy work-life balance:

Striking a balance between work and personal life is essential for employee well-being. Organizations that encourage time off, flexible work arrangements, and reasonable workload distribution show that they value their employees' overall happiness.

Prioritizing mental health support:

Mental health is a critical aspect of employee well-being. Offering resources such as counseling services, and stress management workshops, and creating an open dialogue about mental health can create a supportive environment.

Providing financial wellness benefits:

Offering additional financial wellness benefits such as On-Demand Pay, also known as earned wage access, is one of the most sought-after employee benefits nowadays and it is one of the biggest considerations that employees want to have access to in the workplace.

On-Demand Pay gives control back to the hands of employees who need instant access to their earned wages to address immediate needs. Recent ADP research shows that 96% of employers offering on-demand pay said it helps them attract talent, 93% claimed it helps retain employees and 96% stated that their employees like it and it improves their sense of financial security.

Clair provides an incredibly easy On-Demand Pay solution to get you started on offering free earned-wage access to your employees. It’s financially risk-free and won’t require you extra resources to manage and implement for your business. Schedule a demo today and discover how Clair can help you and your employees reach financial freedom. 

Step 4: Recognize and Address Employee Concerns

Conducting regular employee feedback surveys:

Regularly seeking feedback from employees helps identify areas that need improvement and gives employees a voice in the organization's development.

Actively addressing workplace issues:

Promptly addressing concerns and issues raised by employees demonstrates that their opinions are valued. Transparent communication and problem-solving can contribute to a healthier work environment.

Step 5: Embrace Diversity and Inclusion

Creating a diverse and inclusive environment:

A diverse workforce brings a range of perspectives and ideas to the table. Encouraging diversity in hiring and fostering an inclusive culture can lead to more innovation and collaboration.

Celebrating differences and perspectives:

Organizations that celebrate the uniqueness of each employee create an environment where everyone feels valued for their contributions, irrespective of their backgrounds.

Providing equal opportunities for all:

Ensuring that all employees have equal access to opportunities, growth, and advancement helps build trust and a sense of fairness within the organization.

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Retaining new employees is crucial to building a successful and sustainable workforce. By following these simple yet powerful steps, employers can create an environment where employees feel valued, engaged, and motivated to contribute their best efforts. Implementing these practices will retain your new employees and lead to increased productivity, reduced turnover, and a strong employer brand.