How to Increase Retention Among Employers
An increase retention rate can be the difference between a successful organization and one that is perpetually seeking growth and mediocrity. It is the single most important variable in determining the long-term success or failure of any organization. This is true for all types of businesses, from small companies to large corporations. In a world of constant change, it is essential that companies stay ahead of their competitors and offer something unique that attracts and retains the best talent available. One of the best ways to do this is through developing an effective succession plan.
The best way to accomplish this goal is through an organized succession plan. A succession plan is basically a strategic plan that companies develop and implement to foster an environment that encourages increased employee retention, avoids attrition, increases productivity, and provides value to customers. As stated by the McKinsey survey of top customers, “customer value is everything.” Companies must therefore provide excellent employee benefits in order to retain high quality staff.
One way to increase retention is through customer retention marketing. Customer retention marketing is an innovative concept that involves the development of customer loyalty programs that reward current customers for referrals to a company and its offerings. Through a combination of customer service, advertising, and special offers, a company can attract repeat business from existing customers while at the same time encouraging future customers to recommend the organization to friends, co-workers, and other individuals.
Another effective retention marketing strategy is to provide financial incentives for employees who engage their coworkers and help to increase overall engagement. Ineffective retention primarily occurs when companies fail to provide their workers with an adequate source of income to support their lifestyles. Without an adequate salary or benefit package, an employee will not be motivated to work hard. Financial rewards can provide a worker with the extra income needed to supplement his or her lifestyle. This enables an organization to attract and retain highly effective retention leaders who provide their employees with the extra incentive needed to retain their jobs.
Some of the ways in which organizations use customer retention marketing strategies include: providing periodic newsletters, providing co-op discounts on select products and services, providing cash incentives for important referrals, rewarding employees who follow program rules and increasing employee awareness of rewards and special programs. It is not uncommon for co-ops to offer points or other prizes for referral activity. Employees who receive high levels of follow-up are more likely to follow a program rule, purchase a product following a recommendation, or participate in an event related to the company’s goals. Similarly, those who receive high levels of financial incentives are more likely to take advantage of such opportunities as paying for entertainment activities. All of these activities help an organization increase retention.
Surveys and focus groups can also be used to determine which retention strategies are most effective. An organization can provide direct information about how customers are receiving the different services and products. Companies can also conduct focus groups that allow participants to provide information directly, rather than indirectly through the medium of a survey or study. Firms may use customer retention studies to find out which products, services, and events are popular and why. This information is useful not only to improve current practices, but also to identify new opportunities for future growth.
A third way in which customer retention marketing can be effective is by encouraging the sharing of customer stories. Through such stories, participants are allowed to ask questions, receive answers, and learn about the success or failure of specific projects or actions. Sharing such personal stories allows participants to gain insight into what customers do not like about certain practices, which can help them to create better customer service practices.
The current state of technological advances, combined with the media spotlight, has resulted in a significant increase in the amount of feedback provided by customers to employers. Maslow’s Hierarchy of Needs, which he used to classify human needs, now provides an ideal tool for understanding and predicting the needs of applicants. Through this framework, employers can gain a better understanding of who they are competing against, as well as what qualities they should look for when hiring a new employee. With this information, they can develop programs and trainings that will increase job satisfaction and strengthen their overall bottom line.