October 23, 2017

The Value of Employee Retention

by Natalia Bubis

Reports from around the fenestration industry have continued to crop up—labor shortages have made an impact on the plant floor. It’s a trend our teams have continued to track, and something we’ve tried to help our customers navigate as best we can.

Turnover on the plant floor can have a negative impact on volume, quality, and more.  But of course, employee retention is critical from the bottom to the top of your organization, and it’s important that your efforts to keep good people in house account for all levels.

With that in mind, here are some tips that can contribute to better retention throughout your organization:

Avoid stagnation.

The Harvard Business Review notes that employees who feel like they’re stuck in a rut are more likely to leave a company. “Even after controlling for pay, industry, job title, and many other factors, we find workers who stay longer in the same job without a title change are significantly more likely to leave for another company for the next step in their career.”

In short, employees are more likely to stay with you if they can see a path for career growth within your organization, no matter the role they’re currently playing. Do what’s possible to create those paths for your team Advocate for continued professional development, like joining industry organizations, seeking continuing education, and more.

Culture and communication matters.

Workplace culture is important, impacting the level of connection your employees feel to your organization, as well as their communication with other employees. The Society for Human Resources Management (SHRM) notes in a recent report that socialization, particularly among new employees, is a critical element in employee retention. “Research has shown that socialization practices—delivered via a strategic onboarding and assimilation program—can help new hires become embedded in the company and thus more likely to stay.”

Create metrics and benchmarks.

In the age of big data, there’s a way—and a reason—to track everything. Your employee retention rate is no different. SHRM additionally notes in its report that establishing benchmarks, both internal and external, is critical in identifying whether your business has a retention problem and in taking action to fix that problem. “Is a 15 percent annual turnover rate too high? This question is impossible to answer in isolation… Through external benchmarking, a company compares its turnover rates against industry and competitor rates,” the report notes, adding that internal benchmarking enables organizations to identify any “red flags.”

Questions or comments? Contact me directly at Natalia.Bubis@Quanex.com.

For more information about Quanex visit www.quanex.com
Posted: October 23, 2017 by Natalia Bubis Filed under: employee, HR, workplace