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The Key to Increasing Your Employee Retention Rate

Amy Ridder May 22, 2019

According to a study done by SHRM last year, the largest challenge cited by workforce management was dealing with low employee retention rates. Unfortunately, the stats don’t lie on this one. Approximately 3 million Americans have quit their job each month since January 2019. Plus, replacing a highly-trained employee who leaves his or her position can cost up to 200% of their salary. Were some of them your employees? If so, your employee retention rate is probably top of mind.

how to increase employee retention rate

But what can you do about this? Perhaps you’ve tried some of the common methods, like a new and improved onboarding process, a program that invests in your employees and their professional development, or an overhaul of your company culture. What happens when these don’t work?

How can you increase your employee retention rate? A rewards and recognition program is the key.
A rewards and recognition program allows you to formally recognize an employee for anything from a good deed around the office to a fantastic work ethic they exude to a project that goes above and beyond what you expect from them. What is really great about a rewards and recognition program is that it benefits both employer and employee. For employees, concrete appreciation in the workplace is a motivator and a reminder that the work they do is valued by their employer. For the employer, recognition can lead to increased engagement, productivity, and of course, retention rate.

What sets a rewards and recognition program apart from other recognition methods?

  • Visibility
  • Inclusivity
  • Timeliness

Visibility

Typically, recognition used to be a private thing. Managers would bring employees into their office, or send them an email, letting them know they did a great job. As a result, the recognition goes widely unseen by the rest of the office or workplace, including other managers, executives, and coworkers. Consider the effect public and specific praise has, not only for the employee being praised but for his or her peers. We know that employees want recognition. So, when they see their fellow coworkers receiving it, and more importantly, they understand exactly what they did to receive it, they’re more likely to duplicate that exemplary work ethic. Or, perhaps, they’ll apply that drive and find a new and exciting way to succeed on their own! Either way, employers are guaranteed a more productive employee, and workers feel more motivated and incentivized to work harder.

Inclusivity

When you consider your employee retention rate, and the employees you want to retain, who comes to mind first? The executives, who will be the most costly to replace? The high performers, which will leave a gaping hole in your workplace? The under-engaged, who are at the most risk to quit their jobs? Instead of focusing on a specific target in your workforce, why not target everyone? A rewards and recognition program that puts everyone on the same playing field, and rewards everyone with the same kind of praise and monetary compensation means you don’t have to choose which employees you should focus your efforts on. Not to mention, employees will notice this change in the hierarchy. No one wants to feel as though their employer values another coworker over themselves, so remove that problem entirely with a rewards and recognition program that emphasizes inclusivity.

Timeliness

Imagine you just nailed a presentation or finally hit your lofty goal for your team. You know you’ll be recognized for your achievements, yet you find yourself waiting until the end of the quarter for the company to meet and hand out recognition, or even the end of the year, for that bonus to drop. Soon enough, you’ve forgotten about the achievement and the recognition that comes with it. Worse, you feel no drive to repeat those actions because you saw no praise or appreciation for them. Employee recognition should be given in real time, as soon as a manager (or peer!) hears of it. In doing so, an employee understands the connection between the output of good work and the reward that comes with it. Better yet, they will continue to strive for more rewards, meaning a continued stream of high-quality work.

A decreasing retention rate is something several HR managers are currently dealing with and unfortunately, many of their strategies to fix it aren’t working out well. That’s why a rewards and recognition program is the answer. It allows you to give public, on-the-spot recognition that all your employees can use. Click here to find out more about PerkSpot’s Rewards and Recognition program!

5 Tips for Creating the Best Employee Surveys

Amy Ridder November 15, 2018

There are endless benefits to creating an employee survey to understand satisfaction levels throughout your workplace.
employee survey tips
A survey allows you to discuss employee benefit plans, improve satisfaction and productivity, and increase employee retention rates. An employee survey can make an employee feel as though they are being given the opportunity to voice their opinion, and that you, as an HR professional, care about what they have to say. Here are five tips for getting the best results from your employee surveys!

Communicate and Encourage

An employee survey won’t be successful if it’s just an email sent to employees’ inboxes, without an introduction or explanation. Use your company’s communication channel to inform employees about the upcoming survey. Furthermore, impress upon employees that their responses will be valuable in helping to effect change within the company. Pre-survey communication will guarantee much higher numbers of participation, according to numerous studies.

Emphasize Anonymity

In conducting your employee survey, you want the most honest responses from employees. The only way to receive them is through an anonymous survey. Your employees may not feel comfortable openly sharing their opinions for fear of backlash. Not to mention, an anonymous survey puts all employees on a level playing field. With anonymity, no employee feels uncomfortable because of their age or position in the company. This means they will be more likely to offer opinions and suggestions for improvement. In reviewing responses, there is no bias coming from your end, so the results are more reliable. It’s a win-win!

Make it Easy

Your employees have a lot on their plates, so motivating them to complete a survey can be difficult. Keep this in mind when writing your survey. Don’t make it unnecessarily long – the whole point isn’t to distract employees or keep them from completing other work. The National Business Research Institute says 60 questions is the perfect length for your survey. Not so long that employees feel tired or bored, but long enough to give you the answers you’re looking for!

Ask the Right Questions

Make your questions simple. According to Inc., it’s a lot easier for an employee to answer a close-ended question versus long-form, written responses. Providing close-ended or multiple choice options makes quantifying results easier for you as well! Make your questions clear and understandable. Have a fellow colleague take a look at your survey and review it for readability. Another set of eyes is always a good idea, and it will ensure you have created the best survey for your employees.

Use the Results

A Forbes article reported a 30-40% average response rate for employee surveys. One of the main causes of this disappointing statistic? Employees believe that their responses won’t be considered or utilized to execute changes in their workplace. Reverse that belief by using employees’ feedback to make actual changes where you can. Share the results of the survey and any plans you may have developed for the future. This is a great way of showing employees that you’re taking their thoughts into account, and it will increase the response rate for later surveys.

An employee survey can give you insight into employee engagement, office culture, and job satisfaction among employees. Use these 5 tips to create an employee survey that is sure to deliver the best results!

Are Your Employees Actually Engaged?

Amy Ridder October 24, 2018

Increased productivity, better retention, happier employees … do we have your attention yet? These are all things managers and HR officials should strive for, and they can all be achieved with one simple word – engagement.

are your employees actually engaged

What is employee engagement?

Employee engagement is vital to any company, large or small. It creates a network of employees that are more than just happy or satisfied, but who are genuinely committed to their company. Not only do engaged employees have a deep understanding of their company’s values, but their own personal values align with them. When you can achieve a strong compatibility between company and employee, you have reached peak engagement in your employees!

Why is it important?

Companies that report having engaged employees outperform those that report low engagement numbers by 147% in earnings per share. Employee engagement doesn’t just benefit your workers, but your company as a whole! If you’re hoping to get your numbers up as you finish the quarter, consider improving your engagement numbers first, and revenue will follow.

Studies show highly engaged employees are 87% less likely to leave their company than those feeling less engaged with their work. Yes, you read that right! An increase in employee engagement is just the thing to fix those retention numbers that keep dipping.

70% of workers don’t feel engaged at work, according to career experts at the Muse. Yikes! Reflecting on all the benefits of an engaged workforce, that’s a concerningly high statistic. Perhaps you’re thinking about your employees, and maybe even worrying about their engagement levels. Keep reading, because we break down how to measure and improve your employee engagement.

How do you know if your employees are engaged?

Here are some tell-tale signs that you can look for:

Proactivity
Engaged employees are proactive. Instead of sleepwalking through the first few hours of their morning, they jump into a new work day. These kinds of employees don’t wait for managers to give them tasks; they are self-motivated, seeking out ways to be productive and helpful throughout the office.

Communication
Engaged employees love to talk, and we don’t just mean water cooler chatter. (Although, that’s important too!) They keep managers and employees updated and informed with progress reports. They are open to both giving and receiving feedback. Eventually, an engaged employee can even become a great mentor for other employees, helping them step into their roles and improve their own levels of engagement.

Career Advancement
Career and company advancement is important to an engaged employee. Remaining stagnant at one level isn’t enough for them, and they will continue to look for ways to improve their output, as well as general company success. This is because they’re invested in the company, which is the most important sign of an engaged employee.

Engaged employees are essential to the wellbeing of a company. They help to create an environment that inspires other employees. If you’re concerned about the engagement levels of your employees, check out our recent post about everyday employee engagement tips that can have a big impact on your business.

Keeping and Supporting Young Talent

Katie Williamson October 17, 2018

The workforce is changing. Millennials are no longer the “new” talent, they are THE talent, making up the largest generation in the workplace today. In addition, a recent study shows that 61 million Gen Zers (people born after 1996) are about to enter the workforce.

That means the talent pool is getting younger and it’s time for us to keep up. Keeping and supporting young talent means understanding exactly what they want in a career.

keeping-and-supporting-young-talent

Here are some tips for attracting and retaining young talent:

Find Ways to Add Value

While higher wages are an obvious place to add value for young employees, there are many ways to incentivize them beyond their paycheck. According to a recent study, approximately 20% of Millennials say they cannot afford their healthcare expenses and 46% of Gen Z say their main financial concern is student debt. Get creative with how you’re driving value for these younger generations. Offer better healthcare discounts or start a debt reimbursement program. Better yet, explore what an Employee Discount Program can do for you and your employees.

Offer Opportunities for Collaboration

While Millennials were coming of age with technology, Gen Z has become even more entrenched in social media and constant communication. Due to this change in atmosphere, collaboration is a key motivator for these younger employees. Surprisingly, however, they prefer in-person interactions over the phone, email or even texting when collaborating with co-workers.

Give Them Mentors, Not Managers

Micromanagement is the new smoking. Ok, ok, we made that up. But what we do know is that these younger generations are seeking out thriving relationships between their leaders. Mentorship is a hot topic among this crowd and that is only bound to increase as they take the workforce by storm. Maybe there’s a reason why 70% of multi-national companies are replacing their annual reviews in favor of performance management. Young talent wants specific feedback on their performance, and they don’t want to wait a year to receive it. In fact, studies show Millennials are receiving reviews either daily (19%), weekly (24%), or regularly (23%) versus the traditional annual format (3%).

Create a Culture That Matters

According to Gallup, Millennials turnover costs the U.S. economy $30.5 billion annually. Whoa. We’ve learned a lot from the Millennial workplace and there are many trends that are sure to stay. Flexible hours are considered one of the biggest perks for these employees. They also want a job that is willing to support their career development. They actually want to find a job and stay there, which is great news! As we previously discussed, regular reviews are a great way to focus on career progression and support. In addition to reviews, makes ure you also find time to recognize their efforts, whether it’s through a formal program or as simple as a thank-you note. These few efforts can make a huge difference for your retention as you create a culture that truly matters to your employees.

As we begin to wrap up another year, it will be interesting to see how Gen Z continues to shape our workforce well into 2019. How is your business working to keep and support your young talent?

Shocking Statistics: The State of the Workplace in 2018

Katie Williamson August 29, 2018

2018 has proven to be an exciting year for employee engagement. As we ramp up our efforts to engage and retain more of our workforce, how are we doing?

shocking-statistics-state-of-the-workplace-2018

Here are a few shocking statistics we think you should know about the state of the workplace in 2018 and a number of ways to combat them:

The Shocking Stat:

80% of workers feel stressed on the job.

The Solution: Implement Professional Development Opportunities

While it may seem counterintuitive to add more to an employee’s plate, 48% of employees say that investing in professional development is one of the highest-impact strategies to combating stress that their company can do. Providing opportunities for employees to learn and grow and investing in them as individuals can do wonders for their overall well-being.

Think this seems obvious? Maybe it is, but only 30% of employees say they have someone who encourages their development at work which could be a reason why we’re seeing 80% of the population pulling out their hair.

If you want to do more to encourage professional development at work, start here.

The Shocking Stat:

Of the 5 billion people on the planet, only 1.4 billion have a good job, and just 16% of those are engaged.

The Solution: Offer Competitive Benefits and Perks

Start by considering what makes a good job in the first place. According to 21% of Millennials, a good work environment is defined as one that offers incentives and perks.  Are your benefits competitive? Do your employees constantly stress about their physical or financial health?

Find ways to ease the burden by offering competitive benefits plans and/or a perks program to help employees stretch their paycheck.

The Shocking Stat:

89% of bosses believe employees quit for more money. The truth? Only 12% of employees actually leave for more money.

The Solution: Empower Leadership

If it’s not salary, what is the problem? Studies show that 75% of employees leave their job because of their boss. This could be because 58% of managers today have not received any form of management training.

Professional development should not be limited to lower level employees. Make sure you’re empowering your management teams to lead well. This means focusing on transparency and mentorship among your leaders and again, creating those opportunities for them to learn and grow as well.

The Shocking Stat:

12% of businesses are happy with their current level of employee engagement.

The Solution: Recognize, Reward, Retain

Although 90% of leaders think an engagement strategy would help, less than 25% actually have one. How can we expect to improve employee engagement without setting a real strategy in place?

One of the biggest ways to impact employee satisfaction and retention is with a simple “job well done”. It’s easy to forget to recognize employees’ achievements, but doing so can make or break employee happiness. In fact, 47% of employees say they would like to receive rewards spontaneously.

Creating strategies to reward and recognize employees, like PerkSpot’s recognition program, means making a difference for your employees and your business.

Want to find more solutions for your employee engagement strategies? Chat with us today about how PerkSpot could change the state of your workforce.

5 Things Not to Do for Employee Retention

Katie Williamson July 25, 2018

We all want to keep our top talent. We want to see our companies thrive and grow while rewarding and incentivizing the right people to stay.

But sometimes this simple goal is not that easy to accomplish.

In fact, if you’ve done one of these five things this week, you could be costing your company valuable talent:

5-things-not-to-do-for-employee-retention
Here are five things not to do for employee retention:

Balanced Recognition

It’s easy to recognize the loud, outspoken extroverts for their achievements because they pretty much make themselves known. Although many of these employees may be very deserving of the recognition, introverts are also equally deserving, and in many ways require even more acknowledgement of their success in the workplace. Peer to peer recognition is a great way to help these quiet performers feel valued in the workplace. So the next time you hear someone saying great things about one of these employees, make sure they also say it to their face.

Empty Promises

A sure-fire way to annoy your employees is to promise something and not deliver. This could be as simple as “I’ll set up a meeting to discuss” and not following through. Consistently promising things and not delivering will leave your employees disappointed and will cause them to lose trust in your management or organization. Understanding that things happen, make sure you’re communicating clearly when plans change or you don’t have an answer in the time frame you expected. And, of course, make sure you’re not promising too many things you can’t deliver on in the first place.

Unrealistic or Inaccurate Expectations

Maybe this week an employee completed a project that was NOTHING like you wanted or expected. Again, constant and clear communication is vital to making sure you’re both understanding what is expected for your employee’s role. Make sure if they aren’t delivering, you speak to them and figure out where the misunderstanding happened. Approach the situation with an open mind, being willing to hear their perspective and figure out how you can improve. Of course, if this happens repeatedly, it may be time to evaluate their performance overall.

Unspoken Apologies

We’re all human. Including managers. If you realize you have fallen short for your employee this week, find a way to make it right. This could mean not carving out enough time to chat with them about an issue they were having, responding negatively to a certain situation, or not communicating expectations properly. If you screw up, own it, and make it right before your employee begins to harbor bitterness and resentment.

Constructive Criticism

Did you find a way to challenge your employees this week? One of the greatest ways to improve employee retention is to consistently provide feedback on their performance and make sure they are being challenged. Needless to say, not every week is going to be challenging. We all have weeks when we have to focus on the mundane, but necessary tasks at hand. However, if this is becoming the norm for your employee, you can believe that they won’t stick around for long. Give feedback, push them harder, and make sure they are doing work that challenges them in the right ways.

Which of these did you do this week? What will you strive to do better in the future?

4 Ways to Improve Employee Retention

Katie Williamson April 17, 2018

Retaining employees seems to be a never-ending topic of discussion. In a survey of 614 HR leaders, 87% said improving retention is a high or critical priority. Not surprising considering over 3 million Americans quit their job every month.

perkspot culture four ways to improve employee retention

There is plenty of work to be done when it comes to improving retention rates among these employees, and it all starts with culture.
Here are four ways to improve retention rates that won’t cost a fortune.

Focus on Training and Development

According to a Gallup poll, 93% of Millennials left their job to seek a new role. It seems today’s job seekers feel they need to move on in order to move up. We face similar obstacles at PerkSpot given the small size of our company. One way of combating that was to provide sabbatical opportunities for employees with a small stipend where they can pursue additional training and development opportunities. Employees not only come back refreshed and recharged, but they also have a renewed sense of passion for the work at hand and a few new skills added to their toolbelt. This has been a win-win all around for employee retention and development.

Compensate Fairly

We’ve made another exciting change at PerkSpot this year to improve employee satisfaction and retention. After hearing various feedback from employees, our executive team got together to put a more thorough compensation plan, including individual goals for each employee. Quite possibly nothing is more important than consistently evaluating what and how you’re paying your employees, and including them in the process.

Another Gallup survey revealed “while just 30% of employees strongly agree that their manager involves them in setting their goals at work, those who do… are 3.6 times more likely than other employees to be engaged.” While compensation may seem like a costly part of a retention strategy, bumping up a salary by a small percentage costs way less than hiring a new employee, where the dollar amount for replacing an employee might shock you.

Evaluate Often

While a great compensation plan will set employees up for success, it’s also important to hold consistent performance reviews. Sadly, only a mere 14% of employees feel inspired by their reviews. Remember to ask employees great questions and listen to their pain points. By finding ways to inspire them in their jobs, they’ll leave happier and be more productive in the long haul. Evaluating their compensation should be an obvious part of this conversation, as stated above.

Recognize and Reward

We’d be remiss not to mention rewards and recognition as part of a successful retention plan. Clive Schlee, CEO of restaurants Pret a Manger, discusses with Harvard Business Review the importance of recognition in this short video: “Each employee makes about 5-10,000 decisions a day… how to squeeze a lemon, how to lay the chicken on the sandwich,… these are all decisions that can be done well or can be done badly and how they feel about the company is absolutely critical.”

Meanwhile, only one in three employees say they have received recognition in the past seven days. A critical misstep for companies hoping to retain their high performers. The same report states that 28% of employees feel that the most meaningful recognition comes from their manager, which is why the PerkSpot Rewards and Recognition platform is setup to do just that. Managers recognize their employees in real time, right when they perform an action that aligns with company values.

There are many things you can do to start reducing your turnover and improve your employee retention. Where will you start?

Pet Perks: Bring Your Pup to Work

Katie Williamson February 8, 2018

There’s a reason why instagram handles like @animalsdoingthings and @dogsofinstagram have 1.4 million and 4.1 million followers, respectively. People love their pets. And specifically, millennials love their pets.

pet perks

Over the years we’ve seen that millennials are delaying parenthood in order to maintain independence and focus on their careers. But, with a delay in parenthood comes an increase in pet ownership. According to the American Society for the Prevention of Cruelty of Animals (ASPCA), 44% of Americans own a dog, while 35% have a cat.

If you think pet ownership isn’t affecting the workplace, think again. Here are few reasons to consider offering benefits for pets in the workplace and where to start:

Pets are Part of the Family

According to a survey by Healthy Paws Pet Insurance, 89% of pet parents exercise with their pet regularly, 70% sleep with their pet and 14% manage a Facebook or Instagram account for their pets. As pet owners intertwine their lives more and more with their pets, it should come as no surprise that providing space for pets in the workplace is of high value to these employees.

Pets are Expensive

While pets are a much more affordable alternative to children for many, they still come with a price. Fifty-five percent of pet parents told Healthy Paws they spend over $75 each month on their pets. Employers who choose to help with the burden of these expenses will definitely stand out among job seekers.

Implementing Policies for Pets

PerkSpot client, Banfield Pet Hospital, reported that 7 out of 10 employees and Human Resources decision makers said that allowing pets in the workplace made a positive impact on workplace morale and office dynamics. And while 56% of HR decision makers who don’t currently offer these perks forsee a difficult implementation, only 25% of those who offer pet-friendly policies reported difficulty with implementation. It seems the idea of implementation is scarier than the reality.

While it seems most people love pets, there are always exceptions to this rule. What can be a great perk for some employees might be another’s worst nightmare due to allergies or trauma. Start by hosting a “Bring Your Pet to Work Day” and gauge results using employee surveys and feedback. It’s important to be considerate to those who aren’t pet lovers while still offering benefits and perks for pet parents. One easy way to provide benefits to pet parents, without affecting the non-pet lovers of the world, is by providing pet insurance. This is still a highly coveted perk, requested by 23% of employees in Banfield’s survey. Affecting only those who opt-in to this perk, it’s a great way to determine interest and set your company apart with pet-friendly policies.

Does your company currently offer benefits for pets? Perhaps this is the next move for 2018.

Why You Should Factor in Discounts

Katie Williamson November 2, 2017

Coupons, deals, discounts! These three words might not be ones you normally think of when it comes to employee happiness… but science says, you might want to look closer.
discount science Discount science is an understudied topic, but we think it’s an important one! From keeping employees’ happy to saving them valuable time and money, the evidence is clear.

The History of Coupons

But let’s start from the beginning. Have you ever wondered where coupons started? According to TIME, Coca-cola introduced the first coupon in 1887 with a hand-written ticket offering customers a free taste of their new drink. The success of this campaign is evident in how vast Coca-cola’s reach has been over the last century. Fast-forward to today and more than 700 corporations offer discounts on some type of product or service. It’s no secret that coupons work. But what makes them so successful? And why is it relevant? Only discount science can say!

Discount Science

The Happiness Factor

According to a study in 2012 by Coupons.com, coupon recipients were 11% happier than those who did not receive a coupon. Scientists measured oxytocin levels in participants, the same hormone we experience when we kiss or hug someone. They found that consumers who received a coupon had higher levels by 38%. Scientifically, you could say they were in love with the savings!

The Time Factor

Unfortunately, according to media company Valassis, time is (literally) money for many of today’s employees. In their recent survey, 53 percent of respondents said they spend over two hours a week searching for deals and savings, while 25% of millennials and moms invest over four hours into their search.

The Employer Factor

We believe this is where, as an employer, we can make lives a lot easier for our employees. Employee engagement has gone from a hot topic to a make or break for attracting and retaining top talent. In fact, 4 out of 5 employees would rather receive benefits or perks over a pay raise. By providing discounts, you’re not only putting money back in your employees pockets, but you’re saving them valuable time and energy as well.

It’s easy to offer perks, but are you offering the right ones? Providing discounts can improve happiness among your employees while saving them valuable time and money. The best part is that our discounts are easy to access and easy to use! We’ll save your employees hours each week and put smiles back on their faces.

Contact our team to learn more!

Building Your Employer Brand

Katie Williamson June 14, 2017

We’re all familiar with branding as it relates to marketing, but what about how it relates to recruitment? If you think about popular brands like Lyft, Southwest Airlines, and Starbucks, you probably have a good idea of what it’s like to work for these companies. That’s because they’ve integrated branding not only into their marketing strategy but their recruitment strategy as well.

 

An employment brand is the prospective candidates have of what it’s like to work for an organization. According to Glassdoor, 69% of Americans wouldn’t work for a company with a bad reputation, even if they were unemployed. This goes to show that reputation is everything, not just for consumers, but candidates as well.

building employer brand

Make your employer brand stand out with these 4 tips:

1. Focus on your audience.

First things first, consider the type of employee you’re looking to recruit. While diversity is important for an organization, there should be common denominators that unite your brand, such as creative thinking, innovation, and flexibility. While some thrive in a corporate setting, others may perform better in a more flex environment. Consider what makes your company unique and what unifies your current employees. Draw on your strengths to attract new talent.

2. Showcase “A Day In the Life”

When I was applying at PerkSpot, the job description really stuck out to me because it detailed what I could expect my first six months on the job. When candidates are looking for a new position, they need to be able to picture themselves on a day to day basis performing the tasks at hand. There are so many ways you can showcase what daily life is like at your company. From testimonials to videos to the job description, make sure you’re painting a picture for these prospects so they can visualize themselves working for your brand.

3. Incorporate leadership into the process.

A great way to build company culture and a strong employment brand is by getting the CEO and other executives involved in this process. When leadership takes ownership over the recruitment process and the message you are conveying to candidates, this can humanize the organization and build a stronger brand. In fact, according to Employer Branding International, this is one of the top factors in shaping a strong employment brand.

4. Make your message consistent.

If you’re working for a larger company, it can be difficult to create a consistent message across the board. Conduct employee surveys to gauge the current view employees have of your company. Incorporate the mission and values of the company into each department’s function. For example, if innovation is a core value, make sure every department from tech to marketing knows how this value is expressed in their job function. When everyone from the intern to the CEO can list your core values, you have a strong employer brand.

What are some ways you’re building your employer brand? What are the challenges you’ve seen? Let us know in the comments!

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