Introduction

Employee retention refers to the ability of an organization to keep its employees. This is a

growing concern within the United States workforce. Every month, three to four million people quit

their jobs and one-third of new employees quit within the first six months. Retaining your

employees is a complex problem that requires understanding the culture, motivational theories, and

employee satisfaction. For this paper, we will be discussing the best courses of action for improving

employee retention in the United States and how to implement these actions effectively (Apollo

Technical, 2021).

The Problem

Having to replace your employees can be costly in terms of training and recruiting new hires.

Organizations must make their employees feel valued and provide growth opportunities to

encourage retainment. Studies have found that employees would prefer opportunities for learning,

want to feel challenged, and need to feel like they are in a safe space to communicate (Apollo

Technical, 2021).

As it currently stands, the United States has an employee turnover rate of over 50%, and those

numbers are expected to surge as the end of the COVID-19 pandemic nears. If employers want to

avoid that surge, they need to prioritize employee retention strategies to improve their chances of

success (Apollo Technical, 2021).

Alternatives Considered

Studies show that their employers could have retained approximately 77% of employees who

quit their jobs. 21 % attribute their departure to career development, 13% to work-life balance and

11% to the behaviors of their managers (Tarallo, 2018). All these can be summarized as employers

failing to meet the needs of the employees. Employers who understand these dynamics strive to

ensure they employ suitable candidates and have adequate measures to retain a large percentage of

the workforce by meeting the workers' requirements and expectations

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 An employee's journey begins with the recruitment process, where HR professionals outline

job descriptions, set expectations, interview, and search for the right person who will fit the

organization's culture. A lot of effort, time, and finances go into choosing the right candidate for the

right job. It hurts the productivity of the organization when these individuals leave.

Effective onboarding and orientation

Onboarding is the procedure of supporting newly employed to get comfortable with their

new job role. It is also regarded as socialization in an organization to understand the mechanism of

work systems and get acquainted with the vital information regarding work, behaviour,

competencies, work culture, and efficiency that will aid in the productivity and performance of the

company via training and development (Human Resources Degrees, 2021).

The training and support provided from day one act as a motivational tool for newbies to

become assets for the development of the employer and can set the tone for an employee’s tenure in

a company. This process is classified into formal and informal onboarding. The former focuses on

organized tasks and techniques that help the new employee to adapt to their new role, while the

latter is more informal and semi-organized tasks that aid in teaching the new employee about his/her

new job surroundings. A structured onboarding and orientation enhances employee engagement,

increases productivity, and bridges the communication gap, influencing employee retention

(FastPay, 2018).

Assigning a new employee with a work buddy/mentor adds value to the onboarding process,

especially in the current economic condition where work in remote conditions has become

necessary. This style allows the newbie and the buddy to learn from an experienced and understand

a fresher’s point of view, along with constant guidance to make the newcomer feel welcomed and

comfortable. This program increase employee engagement through collaboration aids in retention

(increased by 50%) of top talent (Pasch, 2020).

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Work-life balance

It is a mandate for employees to know that there is life outside of work in a world filled with

stress and pressure. Lack of work-life balance leads to an unhealthy and dissatisfying work

environment. Over tiredness can lead to deviating from the critical aspects and goals. Statistics show

that working for more hours declines productivity as human brains need to unplug, recharge, and

refresh (Southern Management, 2019).

Organizations and their managers need to encourage a positive work-life balance by

practising it to access one’s potential skills, build creativity, and abilities for increased productivity

(Southern Management, 2019). After all, creating a flexible and balanced work-life environment

makes the employee and organization happy and healthy.

Creating an environment that spreads positivity by defining the attitudes, behaviour, values,

Etc., invites employees to enjoy working with diverse people and cultures. It serves as a platform to

develop skills for open communication, improve retention rates, and increase reputation, directly

affecting the performance of a business (Rajvanshi, 2022).

Following the Covid Pandemic

Since a surge in employee turnover has been ongoing and expected to increase, employees

need to carefully consider how they will address this. Improving income is undoubtedly an option.

As it currently stands, even if the federal minimum wage was raised to 15$ an hour, nearly double

what it currently is, a typical American family could still not afford the basics. The low pay rate

concerning the rising cost of living has consistently caused many employees to look for new better-

paying jobs. Employers need to consider the long-term benefits of raising their wages concerning

employee retention. If wages are not meeting their basic needs, they are far less likely to feel valued

by their employer or feel motivated to remain with a specific company (Health Consultants Group,

2021).

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 Improving employee benefits is another way that a company could show appreciation for

their employees. Lack of paid sick leave was a big problem during the COVID-19 pandemic. Many

Americans are not offered enough paid sick days and will work with contagious illnesses to avoid

being fired. Additionally, benefits are often nonexistent regarding pregnancy leave, forcing pregnant

mothers to return to workdays after they delivered a baby. With healthcare still not being universal

in the United States, Americans rely on their workforce to provide them with health care options.

However, paying for it often takes a large amount of money from their already stretched paychecks,

forcing them to opt-out of having healthcare at all. Ensuring they are given excellent and affordable

health benefits would make a big difference in employee satisfaction (Health Consultants Group,

2021).

Finally, incentive programs can be incredibly motivating for employees. It is estimated that

incentive programs can increase employee productivity by 25 to 44 per cent. Employee satisfaction

increases when there is potential for growth within the organization. Long term incentive programs

do better than short term and motivate employees to remain with the company to achieve that

reward (Stolovich, 2010).

Communication is vital for consistent progress within the work environment. Organizations

need to ask their employees what could be done to improve their relationship with the company.

People vary in their needs and expectations from their jobs, and it is essential to know what your

employees require to remain satisfied with your organization.

Proposed course of action

Studies show that their employers could have retained approximately 77% of employees who

quit their jobs. 21 % attribute their departure to career development, 13% to work-life balance and

11% to the behavior of their managers (Tarallo, 2018). All these can be summarized as employers

failing to meet the needs of the employees. Employers who understand these dynamics strive to

ensure they employ suitable candidates and have adequate measures to retain a large percentage of

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the workforce by meeting the workers' requirements and expectations. The following factors assist

in promoting employee retention:

 Hiring the right candidate: HR professionals should ensure the job description is as clearly

outlined as possible, so the candidate knows and understands his expectations. While skills

are an essential part of performing the job, it is vital to hire candidates who will align with the

behavior and culture of the organization and work well with the existing team. The interview

should include behavioral questions, role-playing, and practical responses to situational

occurrences. When employees struggle to fit in or find their place within an organization’s

culture, they will be unhappy and discontent and eventually resign or get fired (Kappel,

2017).

PROS CONS

Engaged employee: Some employees perform tasks

Low retention rate: Hiring suitable
that suit their individuality, but when the company's
candidates can reduce the cost of hiring
overall culture reflects their individuality, they
employees, but if not implemented correctly, it
develop assurance in their role and make it difficult
can have the opposite effect (Learn, 2020).
to work (Learn, 2020).
Focus on personality: Companies often make
Cost savings:  Hiring qualified employees that fit
the mistake of choosing job seekers based on
your corporate culture will result in long-term hiring,
personality rather than skills and qualifications
which finally helps reduce employee turnover and
during the interview process (Learn, 2020).
reduce hiring costs (Learn, 2020).

Provide growth opportunities: Employee retention tends to suffer when organizations lack

effective leadership and adequate opportunities for growth (Tarallo, 2018). Employers need to take

it a step further by assisting employees in drawing up a career path and encouraging them to achieve

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it by giving them assignments that will allow them to learn and grow. Companies should also focus

on expanding the knowledge base of employees.

PROS CONS

High cost: Staff training costs can be huge for

small businesses. Travel costs, training

Increased employee motivation: Providing learning
facilities, in-house training and equipment can
opportunities increases enthusiasm for work as
rise quickly. However, there is good news.
employees can apply new skills and face new
Using online training can significantly reduce
challenges (Anna, 2020).
these costs (Anna, 2020).

Increase employee participation: Training and

It takes time to go home: The time an
career opportunities increase employee satisfaction.
employee is trained in the time they spend
It also gives you the tools you need to grow and stay
outside of work. Employees may not be able to
safe at work! Job satisfaction is closely related to
support many hours outside of working hours.
employee engagement (Anna, 2020).
(Anna, 2020).

Offer competitive compensation and good benefits: People like to feel valued. The work

environment generally boils down to how much employees get paid and what additional benefits

they get. Benefits go beyond healthcare and sick leave, other benefits like stock options and other

financial rewards should be explored and allocated based on a predetermined period. 88% of

companies view financial incentives and bonuses as critical in retaining employees (Florentine,

2019).

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 PROS CONS

Talent Attraction: Companies use a competitive

Lack of adequate capital: Competitive
payroll policy to attract skilled employees to their
payroll policies can be a great way to attract
organizations. Every company wants to be
and retain talent, but new businesses may not
successful and hire talented professionals to help
have the capital to pay competitive salaries to
them become competitive in the industry
qualified employees
(Managehrmagazine.com, 2020).
(Managehrmagazine.com, 2020).

Employee Retention: Competitive salary packages

Private Enterprises: Private enterprises are
can increase employee motivation and productivity
often unable to compete with the salary
while reducing turnover, which can cause significant
packages offered by state-owned enterprises,
losses. A competitive payroll package can help
and state-owned enterprises can offer talented
retain the best talent (Managehrmagazine.com,
employee’s high salaries and long-term
2020).
incentives depending on their performance

(Managehrmagazine.com, 2020).

Employee Retention Challenges and Solutions

Although employee retention is less costly and usually sounds easier than new hires, it also

consists of some significant barriers that need attention and significant efforts to be effectively

overcome. Some of these challenges and solutions are as follows:

 Our ambitions change as we grow. It is expected that employees be constantly looking for

better opportunities. Therefore, it is vital to create a development plan that prepares your

employees for their next career advancement (Dimoff, 2021).

 The relationships between senior managers/employees and juniors are strict. Adopting an open-

door policy and enhancing communication among all levels within the company would help

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 your employees be comfortable and come up with their ideas directly. Doing so would make

them feel like a part of the company and become more loyal.

 Employee’s training and mentorship program. Your team will feel bored without continuous

learning and new skills. It is also crucial and highly recommended for employers to create a

mentorship program that shows juniors how to become great managers and leaders (Dimoff,

2021). Investing in your staff will immediately return to your performance and the company’s

overall productivity.

 Over the years, employees may feel lost or unvalued due to ordinary tasks or not being

recognized. An efficient management style should consist of regular performance reviews to

assess their staff and show a logical appreciation for their achievement. Doing so would

encourage them to improve their performance further and overcome their weaknesses or where

they are lacking.

Financial Requirements for Employees Retention:

Some employee retention approaches do not need financial resources, such as adopting friendly

communication, showing some appreciation, and creating a positive workplace environment.

However, it is vital to have a separate budget for the employee retention process for two main

reasons.

 Most people work for money. Therefore, it is vital to offer reasonable salary packages that

fulfill their needs. Additionally, a financial incentive can motivate and reward an employee

further. 

 Investing in employees through training, professional courses, and personal coaching can also

cost money. However, all these expenses are worth spending and will surely return to the

company in better performance and many other advantages.

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 Implementation Plan

Having good business practices does not help unless they are properly implemented

Execution of practices can be difficult, so it’s important to have a good implementation plan To

aid in employee retention, we want to first evaluate our recruitment process to ensure we are

hiring the best candidates. We will formulate a model of excellence with the patterns, values, and

skills needed for the job and then we will send the job posting to a few people in the relevant

department to evaluate it for accuracy (Merlevede, 2014).

Once we enter the interviewing phase, we will have them complete a task with other

members of their potential team to see how they fit in the culture and how they work in the team.

An employee who doesn’t fit in the organization’s culture is not a long-term employee. Similarly,

employee onboarding can also affect retention. In addition to an orientation program, we will set a

meeting between the employee and their manager to set expectations and objectives (Maurer,

2019).

We will also check in with the employee on a daily basis the first week of their employment,

a weekly basis for the first month, and a monthly basis for the first year to ensure employee

engagement and address any problems (Maurer, 2019). Employee feedback, including an exit

interview if they decide to leave, is crucial in preventing retention (Samur, 2019).

Having the right company culture can help prevent burnout and play a big part in employee

retention. The company needs to create and support an inclusive culture. HR will meet with all

employees on a quarterly basis to specifically ask about company culture and if they feel their

needs outside of work are being met. We will also monitor employee work hours to ensure they

are not working more than their required hours in a day on a regular basis. The company will also

allow for employees to work from home at least twice a week, host department-wide fun days

once every 6 months, and offer 2 additional paid days off a year. Having an inclusive culture that

allows for some fun will assist in preventing employee burnout. (Samur, 2019).

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 Another employee retention strategy is to create more growth opportunities HR will sit with

each employee on a bi-yearly basis to come up with an employment plan. Managers will also

recommend company-provided training for the employee to participate in. Employees will also

have the option to audit meetings from other departments at least once every two weeks. This will

help ensure that employees are excited about their job and don’t want to leave. Employees who

feel valued are less likely to leave and one way to show appreciation is to offer competitive

compensation and benefits. There will be quarterly bonuses and gaming programs in which fun

prizes can be won. Financial incentives by themselves are not enough to encourage employee

retention, but they help. Our implementation plan requires effort from everyone in the company,

but our retention efforts will save us time and money (Merlevede, 2014),

Conclusion

Employee retention is important to an organization. Employee turnover is costly, time

consuming, and affects productivity. There are different ways in which to increase employee

turnover, each with their pros and cons, but once a plan is decided upon, it is crucial it be properly

implemented. Employees are a valuable asset that needs to be retained.

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