Top 10 Benefits of an Employee Retention Tool

In 2022, more than 6.5 million workers throughout the UK intend to quit their jobs ^[1]. Some of the leading causes include feeling undervalued, low pay, poor work-life balance, and changes in management ^[2]. Replacing employees is a costly process, and the financial setbacks from resignations is only one of the negative consequences of high turnover rates.

An employee retention platform can help companies increase retention rates through meaningful, actionable steps. By adopting a tool that fits your company, you can improve employee experience, and make your company a better place to work for everyone.

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Why is employee retention important?

From a logistical standpoint, low retention rates are expensive. The cost of replacing a salaried employee is 6 to 9 months’ of their annual pay, and overall replacements can cost between 90% to 200% of that figure ^[3].

Improvising employee retention not only saves money, but it also improves the company culture. When people are happy at their jobs, they work harder, collaborate more often, and are more engaged in every facet of their careers.

Emotional investment from employees can make the difference between merely getting work done and making incredible things happen. Research shows that management is one of the most influential factors of employee retention ^[4], which makes the use of an employee retention platform all the more valuable.

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What is an employee retention tool?

An employee retention tool is a program that makes it easier for companies to boost employee morale and improve job satisfaction.

These tools help companies identify specific points to concentrate on, which helps employees feel more acknowledged, appreciated, and successful.

Adopting an employee retention tool helps management identify opportunities for employee appreciation, and maximize every individual’s greatest potential. Through personalized feedback and engagement monitoring, HR teams and stakeholders can gain deeper, thoughtful insight into how employees really feel, and what they need to be more fulfilled by and committed to their careers.

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10 Benefits of Using an Employee Retention Tool

You might already be aware that employee retention is worth investing in, but you still may not be sure how to go about making noticeable differences in your organization. In that case, using an employee retention platform could help you start to understand exactly what your employees need the most from your company.

Below are 10 benefits you can experience by adopting an employee retention tool into your organization.

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1. Enhance Employee Experience

Some companies may take measures to reduce turnover rates, but they still see consistent disengagement. Just because people are staying in place does not necessarily mean they are content with their jobs.

Your employee retention platform makes it easier than ever to understand what people value the most.

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2. Reduce Resignations

One of the most noticeable impacts of using an employee retention platform is reduced turnover rates. When your company knows how to identify what problems are leading to resignations, it will be able to implement solutions that keep people onboard.

And although some people may still ultimately leave, you’ll have greater insight as to why they left, so you can prevent more employees from resigning for the same reasons in the future.

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3. Understand Employee Engagement Levels

HR is tasked with monitoring and reporting on employee engagement, but not every division knows how to do this effectively. With the right tool, you can easily capture employees’ engagement levels using meaningful, relevant metrics. What’s more, all your key data is presented in visual models that are easily shareable and perfect for initiating important conversations.

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4. Improve Company Culture

The employee experience is a direct reflection of how influential a company culture really is. When you are able to gather insight into each person’s experience, it becomes much easier to recognize where your culture may not be living up to its fullest potential.

Companies that routinely collect and review feedback have an easier time putting their culture’s values into practice.

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5. Facilitates Succession Planning

While you can’t guarantee every employee will stay, you can create plans that protect the most essential roles to your organization. Using data from your highest performing employees, you can create succession plans that make it easier to recruit the best possible talent when vacancies arise.

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6. Improve Employees’ Mental Health

Feeling undervalued or unrecognized in the workplace is one of the most common reasons people leave their jobs. Such feelings are also fueling the phenomenon of quiet quitting, in which employees emotionally detach from their jobs and only perform the absolute minimum to get by ^[5].

If you want to invest in your employees’ well-being, using a platform to understand their experiences and feelings is a great way to do so.

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7. Make Remote Teams More Connected

Remote work is the norm today, but it poses challenges for companies that still rely on traditional management techniques. Remote leadership requires unique tools that appreciate and accommodate the unique feelings, experiences, and expectations of people who work from home.

Using the right platform, you can get to understand your remote teams better, and make their jobs more rewarding.

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8. Make Offboarding Beneficial

Offboarding leaves a lasting impact on a former employee, and you can make the journey more memorable and even positive with an employee retention tool. These platforms are designed to support people through every stage of their journey with a company.

If they do decide to leave, they will be able to share their thoughts and feelings with the right people. In turn, their experiences go on to shape future practices, and make the company a better place for everyone.

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9. Motivate Employees

Many employee retention tools use gamification elements to immerse employees, build camaraderie, and improve learning. With the ability to regularly test their skills and knowledge, employees become motivated to do their best each day.

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10. Make Communication Easier

The right platform will connect HR to employees in a simple click. Live chat features allow employees to immediately reach out whenever they have an issue, question, or concern. Secure, confidential platforms make it easier for both organizations and employees to communicate with complete transparency.

Using a dedicated platform to receive and analyze feedback, communicate, and engage with workers can help transform your company culture into one that values growth, happiness, and enjoyment at every opportunity.

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[1] https://www.peoplemanagement.co.uk/article/1790427/65-million-brits-plan-quit-jobs-year-cipd-says

[2] https://www.glassdoor.com/employers/blog/10-reasons-employees-resign/

[3] https://www.enrich.org/blog/The-true-cost-of-employee-turnover-financial-wellness-enrich#:~:text=The%20Society%20for%20Human%20Resource,in%20recruiting%20and%20training%20costs.

[4] https://www.sumc.lt/index.php/se/article/view/1711

[5] https://www.shrm.org/about-shrm/press-room/press-releases/pages/new-shrm-research-is-quiet-quitting-affecting-your-workplace.aspx

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