Everyone wants to work in an environment where they are happy, feel appreciated, love their jobs, and get along with their colleagues. Such an environment enhances employee happiness, which in turn impacts retention rates. Employee retention rates are metrics used to determine how many employees stay with a company for a specific period.
High employee retention rates are crucial because hiring is expensive, it requires onboarding and training new employees, and there is never a guarantee that a business will find employees as talented, dedicated, or productive as the ones who leave. In this article, we explore how employee happiness impacts retention rates and what businesses can do to improve both.
Ensuring High Job Satisfaction
Employees who report their work to be meaningful, challenging, and aligned with their skills, interests, and expectations are generally more satisfied. Employees who enjoy their roles are more likely to stay with a company because they are unsure whether they can get the same if they decide to go elsewhere.
Businesses and their leaders can ensure job satisfaction by aligning roles and responsibilities to employee interests, skills, and strengths. Surveys can be useful in unearthing this information. HR departments can also use data on when and where employees are most productive to make these decisions.
Creating a Friendly Work Environment
A business or office’s work environment is also a significant determinant of how happy employees are at work. A positive and supportive environment fostered by colleagues, team leaders and management is crucial for most people, especially those likely to feel they do not fit in.
The management can also create policies for effective communication, positive and constructive feedback, and creating a sense of camaraderie to improve overall satisfaction and reduce turnover. It is also a good idea to consider training programmes that teach workplace happiness. Programmes such as those run by The Happy Business School are beneficial for leaders who want to create a friendly and positive workplace culture that employees are happy to be in.
Providing a Great Work-life Balance
Millennials and Gen Z, who now make up a significant percentage of the workforce, place work-life balance high on their list of priorities when looking for companies to work at. This means businesses that do not cater to this need are more likely to lose them.
Flexible work arrangements, hybrid and remote work are all excellent options for providing this balance. Business leaders must also realize that these individuals value their personal time highly and do not want to work when they should be relaxing. There is a lot to be said about this sentiment, but the bottom line is that millennials and Gen Z who feel employers encroach on this time are likely to start looking for new roles.
Business and team leaders who understand the strong connection between employee happiness and retention should have strategies and measures to create a happier and more engaged workplace. They must also provide meaningful work, opportunities for growth, and a favourable work-life balance if they want to retain their best employees. The result is improved performance, reduced hiring and onboarding costs, a stronger workforce, and a happier and more positive work environment for everyone.