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  • Writer's pictureMaxine Ruiz

GoGift’s Guide to Crafting 7 Effective Employee Retention Strategies

In the past year and a half, millions of workers worldwide have left their jobs in the "Great Resignation". This trend, accelerated by the COVID-19 pandemic, has created a job market where employees have more power and options.


Reasons for leaving include low pay, limited career growth, poor work-life balance, and dissatisfaction with management.


As employees assess their priorities, employers must rethink what makes their company appealing. If you're concerned about losing top talent or have already seen turnover due to the Great Resignation, it's time to focus on employee retention. But retention isn't just about dollars and cents – it’s about the vibe in your workplace. 


When turnover rates are low, morale tends to be high, and productivity follows suit. Being part of a team where everyone's sticking around for the long haul fosters a sense of trust, camaraderie, and collaboration that's hard to beat.


We’ve gathered our best employee retention strategies to increase job satisfaction and retain your best workers.


Let’s dig in!



Two colleagues looking at a laptop while working and smiling, one of them an older woman, and the other a younger man.


Why is Employee Retention Important?

If you’re wondering why employee retention is important, let us help you. Simply put, employee retention is crucial for the success and financial health of your company. When you prioritize keeping your team intact and happy, you invest in the company’s future prosperity.


According to The Society of Human Resource Management, investing in competitive wages is more cost-effective than continually hiring and training new employees, which can incur significant expenses and productivity losses.


For example, replacing an employee earning $60,000 annually could cost between $30,000 and $45,000, considering expenses like headhunting, hiring, and training. And don't forget the significant loss in productivity, revenue, and workflow during the hiring and training phases, adding to the overall impact on the business.


With effective employee retention strategies, you can focus on nurturing and developing the talent you already have instead of constantly recruiting new faces. Not only does this save you a ton of time and money, but it also ensures continuity and stability within your organization.



A woman working from her at-home office desk


1. Embrace Remote Work Opportunities

While remote work may not be feasible for all industries or roles in the long term, offering flexible remote work options can serve as a valuable incentive for retaining talent and fostering a positive work environment.


According to Upwork’s “Future of Workforce Pulse Report”, by 2025, an estimated 36.2 million Americans will be working remotely, marking an increase of nearly 90% since before the COVID-19 pandemic. 


This shift towards remote work isn’t just a response to health concerns; it also offers numerous benefits for both employers and employees. Allowing employees to work remotely, either full-time or part-time (hybrid work), can significantly improve job satisfaction and productivity.


And thanks to advancements in technology, many industries now have the capability for employees to work fully or partially from home. 


Benefits of remote work:


  • Remote work reduces the need for nonessential meetings, offering employees more time to focus on their tasks.

  • It provides greater schedule flexibility, allowing employees to balance work and personal commitments more effectively.

  • Eliminating the daily commute saves time and reduces stress for employees.

  • Fewer workplace distractions lead to increased productivity and autonomy among remote workers.



2. Promote a Work-Life Balance

An illustration of a woman, holding a coin with one hand and a clock in the other

If you really want to retain your employees, then encouraging a positive workplace culture is the way to go. In fact, it’s one of the top priorities for employees when considering job opportunities – especially after the pandemic.  


So, how do you promote that, you may ask? You might already know the answer: through remote work, flexible schedules, or reduced workdays. 


Additionally, respecting employees’ time away from work, such as avoiding after-hours emails or calls, is essential for building a strong relationship with them.



3. Prioritize Competitive Compensation

One of the best employee retention tips we’ve got for you is to prioritize and ensure that your employees receive fair and competitive pay.


Proper compensation not only demonstrates that you value their contributions but also plays a crucial role in retaining them – it’s essential to pay your employees a wage that reflects the worth of their time and efforts. If their responsibilities increase, so should their rewards.


Things to keep in mind:


  • Offer wages that meet or exceed the living wage in your area. For example, if you’re in the US, you can use MIT’s living wage calculator.

  • Regularly adjust wages to keep pace with rising inflation and reward employees as their experience and responsibilities grow.

  • Research competitor salaries and wage trends to ensure your compensation packages remain competitive.


4. Boost Employee Involvement

Want to keep your team motivated and happy? It's all about getting them engaged with your company. When employees feel disconnected, it can lead to lower morale and decreased productivity. So, make sure they feel heard and valued.


Give your team opportunities to share their thoughts and ideas openly. After all, they often have valuable insights from their experience on the job. Encouraging them to collaborate on improving workflows and the work environment can make them feel like they’re shaping the company culture – and that often makes them want to engage!


But remember, not everyone wants to participate in every activity. Avoid forcing engagement or organizing activities without clear goals. Instead, ask your team what they’d like to see. It’s all about finding the right balance and making sure everyone feels comfortable and involved.



5. Recognize and Reward Your Employees

A woman being given praise about her contributions by her colleagues

Did you know that when employees feel valued, they're not only happier but also more motivated and productive? Studies by the Brandon Hall Group reveal that companies that regularly recognize their employees are 41% more likely to keep them around and 34% more likely to keep them engaged. 


There are many ways to show appreciation, from social recognition to tangible rewards. Whether it's a simple “thank you” or a gift card, acknowledging their hard work publicly and personally can make all the difference. And don't forget to ask them what they prefer if you want to make it extra personal!


Remember, it's not just about the results; it's about the effort, too. Even if things don't go as planned, let your team know that their dedication is valued. This encouragement can boost morale and inspire them to keep striving for success. That way, you can create a workplace where everyone feels valued and appreciated!


If you need help, we’ve created an easy guide for implementing employee recognition programs here. Do you, or someone you work with, need more convincing about the benefits? Learn about employee engagement ROI here.



6. Foster an Inclusive Culture

Our sixth employee retention tip is to create a workplace culture that employees truly want to be a part of – keeping them happy and engaged.


According to a Glasdoor study, 77% of job seekers consider a company’s culture when applying for a job. And guess what? It's just as important for those who are already on board. In fact, nearly two-thirds of employees say a great company culture is a major reason they stay put.


Building an awesome company culture involves embracing many of the strategies we've already discussed. That means recognizing and rewarding effort, not just success, and defining a meaningful mission for your company. Plus, involving your team in important decisions about where the company is headed.


But that's not all. It's crucial to create a diverse and inclusive workplace where everyone feels safe and valued. This includes members of BIPOC and LGBTQ communities who may face unique challenges in finding welcoming workplaces. 


By championing inclusion and diversity in the workplace, you’ll attract and retain a talented, diverse team that enriches your company in countless ways. That’s how you create a culture where everyone feels like they belong!



7. Beat Employee Burnout

Employees working in the office late at night

Ever feel like your team is running on empty? You’re not alone. According to a Gallup report, nearly eight in 10 employees experience burnout on the job. Another Gallup report shows that a whopping 76% of employees experience burnout at some point, with 28% feeling it “often” or “always”. 


And it’s not just about the hours worked – it’s about how employees feel about their workload.


To combat burnout, it’s also effective to focus on engagement, recognition, and flexibility. When employees feel valued and connected to their work, they report higher well-being.


Gallup identified the top five burnout factors:


  • Unfair treatment

  • Unmanageable workload

  • Poor communication

  • Lack of manager support

  • Unrealistic time pressure 


So, improving your company culture, boosting employee engagement, and offering flexibility can all help beat burnout. Plus, wellness perks and clear communication go a long way in keeping your team happy and motivated.



 


An illustration of a man for GoGift

About GoGift


GoGift, a leading global provider of gift card solutions, specializes in offering innovative and versatile gift card services to over 15.000 corporate clients worldwide. With a commitment to simplifying the gift-giving process, GoGift provides a broad range of gift card options from numerous popular brands, catering to a diverse array of tastes and preferences. Their services are designed to enhance the gifting experience, making it more convenient, personal, and enjoyable for both the giver and the recipient.


For more detailed information about GoGift, please visit their official website: https://www.global.gogift.com/







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