Retaining Baby Boomers – Understanding the Work-Life Balance
A true customer retention plan is a structured plan that businesses develop and implement to foster employee retention, reduce attrition, increase productivity, and promote customer loyalty. It includes many elements. One of the most important elements is providing good customer service. That means providing personalized follow up. Follow up communicates that the company cares about your needs and will be responsive if you have any questions or concerns.
In this global pandemic of over 500 million displaced workers, few companies have the resources to carefully select, hire and retain talent. The few American employers with enough talent to hire thousands of employees have been forced to turn to lower-cost solutions to fill available jobs. A solution like pay Activated Recruitment (PIR) is emerging at the edge of every industry.
When properly implemented, PIR works by encouraging current employees to remain at their companies of choice rather than searching for new employment. This provides employers an edge over competitors who are constantly employing temporary workers on short term basis. According to studies, a major cause of high turnover in the U.S. and Canada is the difficulty of creating a work-life balance for employees. This inability creates stress, anxiety and high turnover.
According to Pay Depot, a leading direct sales company in the U.S., turnover due to financial hardship was one of the largest causes of missed opportunities in the last 20 years. One in seven employees leaving a company within the first year is likely to experience financial change. In this environment, the ability of employers to successfully retain employees becomes even more challenging. The high cost of payroll annually adds to a company’s expenses. A company without a strong and effective payroll system will have a hard time retaining its top talent.
One way to increase retention and productivity is to focus on the development of employee wellness and the improvement of employer relations. Studies have shown that increased time spent on wellness and an increase in paid time off can lead to higher levels of motivation and employee engagement. Employees that spend time actively participating in wellness programs are less likely to leave their jobs. In turn, these employees are more productive because they have a greater level of confidence that their job will be safe. It has been reported that a global pandemic has led to a spike in the number of sick leave requests made by employees.
Payroll and recruitment practices must be improved in order to meet current labor demand and infuse adequate staff resources. However, current unemployment rates and high levels of turnover should be a wakeup call for employers to reexamine their recruitment and retention practices. Many businesses are using temporary employees as a source of cheap labor and have little regard for the potential consequences of hiring these individuals. According to one report, a national study found that increased use of in-house temporary employees resulted in a drastic increase in turnover rates and a significant increase in the rate of employer claims for negligence. The authors of this study went as far as to recommend that the government be required to provide unemployment benefits for individuals suffering from extended unemployment.
Payroll practices should also include a focus on the development of employee incentive plans. These types of programs help to increase retention and productivity by providing employees with an increased level of recognition and motivation for taking home work. One common incentive program that many companies use is Pay Activ. This program provides employees with the opportunity to earn money for every hour worked even if they are not at work. The motivating message that Pay Activ delivers to employees may be enough to significantly decrease the rate of employee turnover.
Employers need to realize that the culture of modern businesses is not completely dependent on technological advancements. Although technological developments have contributed to an increased level of convenience and a more streamlined customer experience, the ability to create a meaningful work-life balance is still within reach of employers of all sizes. Increasing retention and productivity through a comprehensive understanding of the personalities that shape the personality of their employees is the first step. Following this understanding are important strategies to increase motivation, engagement and productivity among current and former millennials.