Implementing a Staff Retention Plan: 6 Strategies to Future-proof Your Company

The Canadian labour market is undergoing a significant transformation.

As new generations join the workforce amidst a persistent skills gap, employers face the dual challenge of attracting and retaining top talent. The focus on work-life balance, benefits, and overall wellbeing has undeniably reshaped employee expectations.

In this evolving landscape, a robust staff retention plan is not just an option but a strategic imperative. It's about cultivating an environment where your employees feel valued, engaged, and inspired to contribute their best, ensuring your organization's sustained success and growth.

Here's why.

The importance of assessing the employee experience

Canadian employees are reevaluating their priorities, seeking roles that offer not just financial compensation but also a sense of purpose, flexibility, and support for their wellbeing. 

The evolving expectations of a multi-generational workforce, coupled with ongoing skills shortages, have made attracting and retaining talent a complex endeavour. 

Companies should recognize and adapt to these changing dynamics. Otherwise, your company risks losing their valuable employees to competitors who offer a more fulfilling and supportive work environment. In this context, prioritizing the employee experience is no longer optional; it's essential for organizational success.

Therefore, the issue of employee experience takes on a whole new dimension in the face of these challenges. Too high a staff turnover can damage your employer brand, which, in turn, can complicate your hiring process.

Here are six strategies for improving your employee retention policy.

1. Fine-tune your hiring

Hiring an employee is expensive. Previous benchmarked data from SHRM found that the average cost per hire was nearly $4,700, but it could be three to four times the position’s salary. The cost of hiring increases proportionately based on the search duration, the role, and the salary grade. The first stage of the retention plan, therefore, takes place at the beginning of the process, i.e. the hiring stage.

To attract and hire candidates who meet the company's needs and who have the best chance of integrating into the team long term, employers should regularly:

• review candidates' experience
• select candidates while keeping the long-term in mind
• avoid delays in responding and provide a positive experience by automating certain stages
• create a compelling employer brand
• develop a strong company culture that is reflected in your company's actions
• promote diversity and inclusion

2. Set up an integration strategy

Losing an employee shortly after hiring and onboarding them is even more damaging for businesses. According to US stats, it costs between 25% and 250% of an employee's annual salary to replace them after their departure, depending on the level of expertise required for the role. In addition to financial losses, employee turnover negatively affects employee morale, productivity, and satisfaction rates.

A well-designed integration plan for new hires increases their sense of belonging, encouraging them to stay.

3. Focus on listening and collaboration

In a rapidly changing world, agility, innovation, and creativity have become key assets. To tap into the collective intelligence of a motivated and diverse workforce, managers must learn to guide and listen, rather than manage. Collaborating and exchanging ideas at all levels and between levels can lead to a style of leadership where everyone feels free to contribute and communicate. Any employee should be able to ask questions and get answers, but they can only do so if a structure is put in place to accommodate them.

4. Foster a stimulating and positive work environment

For employees to want to invest themselves in the company and give their best, they must feel that they have the power to act and that they are progressing in an environment of trust, support, recognition, and fairness. Having a company culture that promotes employee empowerment helps foster a stimulating work environment and nurtures a sense of belonging. 

An employee retention strategy should also include simple, practical measures to promote wellbeing at work:

• Provide a pleasant and positive environment
• Offer flexible hours, a good work-life balance, and attractive benefits
• Encourage active breaks and exercise
• Organize social or group activities, either virtually or in person
• Introduce meeting-free days and periods of concentration
• Recognize the right to disconnect

5. Show recognition

Compensating employees fairly supports retention. In a competitive market, employees who feel underpaid won't hesitate to look for something else. McKinsey reports that 100 million workers will need to look for new jobs globally by 2030.

In addition to financial rewards, recognition is a powerful indicator of a company's economic performance. Your management teams would benefit from receiving information and training in this area, as they are in direct and close contact with workers.

According to research by Jean-Pierre Brun¹, workers want to be valued more now than ever. They want to participate in decision-making, be consulted and informed, and be able to contribute to new projects. They want to feel that they belong within the company, that they have a role that matters, and that the company appreciates their value.

6. Encourage employee development

Statistics Canada's 2021 Survey of Employers on Workers' Skills indicates that more than half of businesses (56.1%) said they had employees who did not have the skills to do their jobs at the required level.

In addition to filling employee skill gaps, professional development and learning opportunities boost belonging and loyalty.

By making your company an employer of choice and creating an environment in which employees like to work, feel valued, and feel proud of their work, you will be on your way to reducing turnover and optimizing your employee retention rate. The resulting snowball effect will enable you to attract a better pool of candidates to fill positions and ensure the growth of your organization.

¹ The Power of Recognition at Work: 30 Factsheets to Combine Health, Engagement and Performance, Jean-Pierre Brun and Christophe Laval, Eyrolles, 2018.