It’s no secret that retaining employees is a challenge for entrepreneurs. With the rise of technology, employees are more likely to leave their jobs in search of something new and exciting. Most employees these days are opting for jobs that offer better benefits, higher pay, a greater attention to work/life balance and more flexibility with their schedules. And in a labor market that is skewed due to the pandemic, it’s becoming more and more difficult in 2022 to attract talent and applicants who are searching for these options. In this blog post, we’ll explore some tips from top business leaders to retain your employees in 2022 like offering remote work, negotiating with employees, and exploring what it would look like to expand your benefits and increase your salary bases. Keep reading to learn more!
Restructure Your Benefit Plan
Benefits are one of the ways you can retain employees in the long term without restructuring your payroll budget too much. If you currently offer benefits to your employees, explore adding additional perks to already existing ones. If you don’t, start looking into the potential of offering medical, dental and 401k benefits to your employee package as soon as possible. “The labor market is fluctuating right now so that there are a lot of jobs available, but a nervous pool of applicants needing better benefits and a greater work life balance. The best way to retain employees in the 2022 market is by considering how you can structure your employee model to offer better healthcare, wages, and vacation time to your employees,” Joel Jackson, Founder of Lifeforce.
This is especially important as we continue to struggle with the fallout of the COVID-19 pandemic. Employees see health care and sick leave not just as perks but requirements. “Amid an ebbing and flowing global pandemic, employees are looking for jobs that have better benefits, higher pay, more flexibility and most importantly offering sick days,” said Jae Pak, Founder of Jae Pak MD Medical. “Paid sick leave is something that many employees quit their jobs over, or decided not to return. Consider folding paid sick leave into your employee model if you don’t already offer it to your team.”
Diversify Your Team
Employees in 2022 are also going to be seeking a workplace that values diversity and inclusion. “Make a broader attempt to diversify the people you hire and what kinds of jobs you can offer,” said Trisha Bantigue, CEO of Queenly. “Many companies are continuing to offer remote jobs in an attempt to attract a wider pool of potential applicants. You can also consider offering employees some form of equity in the company like stocks to curb turnover. Employees want to feel secure in their jobs, and the more willing you are to offer benefits like remote work, equity and an inclusive work space, you will increase your employee retention in 2022.”
Diversification can be a tricky thing to tackle, so meet with your team to discuss ways that your office can become more inclusive. “Talk with your team about the best way to diversify your workplace. Your team will likely have insight that you may not have in terms of how to make your company more equitable and inclusive for everyone,” said Alex Beller of Postscript.
Offer More Flexibility
Another major way to retain employees in the new year is by offering a more flexible schedule to your employees, especially those working from home. “Flexibility in work hours is a great way to retain strong employees in 2022. While the workforce is prioritizing remote work, they are also prioritizing their time blocks during work days. This allows a great attention to work/life balance and shows that your company understands the economic climate and the need for change!” said Tyler Read, Founder and Senior Editor of Personal Trainer Pioneer.
Employees are looking for companies that are addressing the need for a better balance between work and life. Schedule flexibility is one of the ways companies can achieve this. Amanda E. Johnson, CMO of HIDE said “One of the ways companies can provide a better work life balance is by offering a great flexibility for workers schedules. A clearly understood end of day for employees is a great way to start allowing employees greater flexibility in their own lives to prioritize things other than work, avoiding burnout and frustration.”
Work With Your Employees to Meet Their Salary Goals
Of course, the most sure fire way to lock down employees is by increasing salaries. When this is possible, and makes sense for the longevity of your company, it’s a great service to your employees to be able to compensate them fairly and offer them a higher wage. When this isn’t possible, there are temporary solutions such as quarterly bonuses based on performance or added benefits. “Loyalty for employees is strongly related to compensation based on economic conditions. This doesn’t always need to be base salary increases and can take the form of quarterly bonuses, or increased benefits over time,” said Kevin Miller, Founder of Kevinmiller.com.
Even when you can’t raise an employee’s salary, you should hear them out and help them understand what goals or milestones need to be met before raising their wages. “Your current employee base is likely already thinking about when and how they can increase their salary base. Even if you can’t change your salary budget, make sure you listen to your employees wants and needs. There might be some way you can meet their needs while they build up the necessary experience or time at the company to increase their pay,” said Shaun Price, Head of Customer Acquisition at MitoQ.
Upward Motion Keeps Employees Around
In 2022, job security, benefits and the ability to move upward are all going to be major for companies retaining employees. “Employees in 2022 are looking for job security, and opportunities to move up in the company. If your business has no upward trajectory, you’ll have a tough time retaining strong team members in the new year. Review your salary structure and see if you can offer employees at certain levels promotions and salary increases throughout the year. This may take time, but structuring it even in small ways will inform your employee model in the long run to offer upward motion for team members,” said George Fraguio, Vice President of Vaster.
Your team needs to feel like there may be bigger opportunities for them at your company in the future, especially for those working entry level jobs. This will motivate them to keep improving on their performance and help them stick around for longer. “The potential for upward mobility in a company is a motivating tool for employees. This will help them stick around if they feel like there might be an opportunity for a promotion, especially when the promotion comes with a salary bump,” said Michelle Davy of Wheel.
Cultivate Supportive, Positive Company Culture
At the heart of it all is cultivating a positive and supportive office culture. This means being transparent, kind and honest with your employees so you can work together to meet both of your goals. “Pay close attention to the culture you cultivate at your company. Companies that focus on the way their employees feel at work from day to day have a higher retention rate. This along with attention to benefits and pay will increase your employee retention in 2022,” said Lauren Kleinman, Co-founder of The Quality Edit.
This is especially important because when employees get burnt out, they need to feel like their team and management can understand where they’re coming from and reach out for help. “Make sure you provide ample resources for your employees if they feel burnt out. The top reason that employees quit is because of job related burnout, but if your team feels like they can talk to someone who understands what they’re going through, they’ll be more likely to ask for help when they need it,” said Cody Candee, Founder and CEO of Bounce.
If you’re looking to retain your employees in 2022, it would be wise for companies to consider the needs of the labor market. Given the state of the job market as we reel from the pandemic, job seekers are more focused on benefits, company culture, sick leave and transparency than they have been in years past. This is because workers are now feeling like they have some say in the conditions of their workplace. To make sure this happens at your company, take some time today to think about what additional benefits you can provide for all new hires or current employees who decide not to leave after hearing these findings! Even something as simple as paying monthly bills or providing pet insurance could help build loyalty among staff members who feel valued by their employers.
Even for small businesses that might not have the resources to offer benefits and salaries to every employee, simple things like offering sick days and vacation days are a great start to developing a company culture that supports its employees, and retains them.
