How To Retain Employees During Inflation

While everyone was anticipating work from home to be the future of work, the companies asked their employees to return to the office. As challenging as it is for the employees, it is also posing new challenges for the HR department - one of which is how to stop employees from leaving the organization?

The answer to this in one line is:

                              **KEEP THE HAPPINESS QUOTIENT UP**

Here’s a secret: Make this a part of your work culture and you will never have to work hard on employee retention strategies ever again.

Why Employee Retention Is More Important Than Ever?

It’s 2022, a post-covid world where inflation is the reality. Thanks to remote working, the world has become an employee’s cocoon. Their job hunt is now not restricted to a city or country bringing in excellent opportunities his/her way, both monetary and non-monetary. What you cannot offer, your competitors will.

In the pre-covid world, candidates were asked during job interviews, ‘why should we hire you?’ In the post-covid world, the tables have turned. Now the employees are asking, ‘why should we choose you?’

Employee retention is also important because recruiting comes with its challenges. From screening to hiring and then training the employees, it is a time-consuming process. It also doesn’t guarantee the long-term association of new hires with the organization.

This can still be considered when you have enough time to hire. What happens when the position is to be filled immediately? You can count only on your current employees who are more than willing to either take up or share the responsibilities of the person who has decided to move out of the organization.

One needs to also understand that in this competitive world, it’s not only the companies that have candidates waiting for them. It’s also the other way round. By the time you select a candidate and send the offer letter, he/she might have ten other offers with a better job profile, a plethora of non-monetary benefits, and ideal numbers on the paycheck to consider.

Just like you, your competitors too are striving hard to join the ‘great place to work’ league. The question here remains the same -

With everything they would offer the same candidate you are considering hiring, why would they choose you? Multiple such factors make recruitment a challenging and tiresome process. Not only is it exhausting for HR executives, but it also ends up spelling losses for the company. And that is the last thing you want for your company during Inflation.

HOW TO RETAIN EMPLOYEES DURING INFLATION

1. Offer Growth Opportunities within the Organization

People quit when they feel they are not offered opportunities to grow in the organization. Stagnancy is the word here! If you think that someone has the potential but lacks the right skill to take up the job, offer to train him/her. Have in-house mentors. When a Manager is being promoted, ask him to pick the right candidate from his team who could take on the responsibility. Let the manager be his mentor before he takes on the role.

As organizational goals change, so do the job profiles. If going forward, if you think someone fits a new role in the organization that requires him/her to switch the department, consider it. Nothing should come between an employee’s career growth. Only then will the company grow.

1. Stop Micromanaging. Trust your People.

Micromanaging is nothing but a ‘toxic work culture.’ When you don’t trust the people who are spending 70% of their day building your company, you disappoint them mentally and emotionally.

That is when they move out. Give them the flexibility and freedom to perform. Micromanaging is like clipping a bird’s wings and expecting him to fly high. If you want your employees to stay, give them an environment to thrive and flourish - mentally and emotionally.

1. Remember, Employees Choose Healthy Work Culture Over Paychecks, ALWAYS!

MIT Sloan Review in its article, where the team published an analysis about factors that are driving The Great Resignation, stated that ‘toxic culture is the biggest factor pushing employees out the door during The Great Resignation.’

People, undoubtedly, consider paychecks. But when? When they are switching their jobs a new organization doesn’t guarantee job satisfaction or security. Once on the job, employees look for much more than the salary they take back home. The priority of the working class is mental health these days as stress has become a part of their everyday lives. They do everything in their power to protect it. Help them go back home happy. Most companies now hire counselors employees can talk to. Apart from their mental health, you can also conduct physical activities that promote the overall health of your employees allowing them to take a break from work while still at work.

1. Let Your Employees Know, THEY ARE IMPORTANT (..AND VALUED)

Appreciation goes a long way. No, we are not saying this, psychologists have proved it with their studies and research. If you want to retain employees, that too, during trying times such as the post-pandemic, work-from-office, and inflation era, then you have to keep your employees happy.

This can be in the form of small perks and non-monetary rewards like performance awards, thank you notes from the Managers or letting the team members take turns to lead different projects.

When Harvard Business Review conducted research last year to study what can managers or companies do to keep their employees motivated while downsizing and pay cuts had become common, they observed that ‘interventions such as congratulatory cards, public recognition, and certificates — can significantly increase intrinsic motivation, performance, and retention rates.’

As they further send out customized letters to employees from Managers to study the effectiveness of small non-monetary rewards, the rate of sick leaves significantly went down.

You can attract new employees by offering hefty paychecks, but when it comes to retention, money (of course, not always), but most of the time, will come last. So, to retain employees, think beyond money. And remember, actions speak louder than words. So, ditch the old ways and think of something creative where your employees feel truly appreciated and valued.

1. Extend your support. Offer work from home

Companies are now welcoming women who were on a career break. Most of the time, women take a break to either look after their family during a crisis or to look after their newborn. In such cases, when you open your door for women employees, make sure you extend support, understand that they cannot be physically present in the office all the time, and offer them to work at their own pace and from a place they are comfortable working. Allow them to save travel time and focus on being productive. Other than women employees, companies also need to take into consideration employees with critical health issues and disabilities. With the end of the pandemic, companies are expecting people to step out of their comfort zone, reshuffle, and readjust to the old but new normal.

Covid left deep marks on many lives. While some lost their loved ones, others are still recovering from the side effects of the pandemic. Such employees should be treated with empathy. Give them the flexibility and freedom to work from wherever they want. And it’s tried and tested, isn’t it? The best part is that we already know the outcome - increased productivity, happy employees, and a profitable company.

In the last two years, HR leaders did everything they could to keep their employees safe and sound. From offering them medical insurance to cover covid expenses to giving extra time off to deal with the stress they experienced while managing work and home together.

As they said from the beginning of 2020, we are in it together. Can we say that about inflation as well? Of course, we can. Because, honestly, we are in it together!

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